Redington Ltd Management Discussions

Global Economy

The global economy remained relatively stable through 2025, despite continuing trade uncertainties, shifting policy conditions, and uneven regional performance. Inflation moderated across several markets, supported by easing price pressures and improved monetary conditions, while household spending remained resilient in many regions. Technology-led investment helped sustain economic activity in key markets, offsetting trade frictions and policy adjustments. At the same time, geopolitical tensions remained an important source of uncertainty. The ongoing Russia-Ukraine conflict disrupted supply chains and trade flows, while the geopolitical tensions

West Asia added further pressure through increased volatility in energy markets, rising input costs, and broader inflationary concerns. These conditions contributed to a more cautious global operating environment, with implications for logistics, sourcing, and overall business sentiment across multiple regions. Employment conditions also remained broadly resilient, supported by continued hiring in services-led sectors, even as some areas of the global economy experienced slower momentum. The services sector continued to play a key role in sustaining growth, aided by financial services, technology, digital solutions, and tourism-related activity. Overall, global growth in 2025 remained moderate and uneven, with emerging markets continuing to outperform advanced economies, though the pace of expansion varied across regions.

World GDP growth achieved 3.4% in 2025, though results varied significantly by region. Advanced economies expanded by 1.9% and Emerging markets outperformed with 4.4% growth overall, led by Indias robust 7.6% expansion and Chinas 5.0% increase.

World trade volumes (goods and services) expanded by 5.1% in 2025, reflecting stronger cross-border economic activity, resilient demand for technology-related products and a gradual easing of certain trade-related uncertainties among major economies. However, global trade growth is projected to moderate to 2.8% in 2026 as geopolitical tensions, evolving trade policies and disruptions to shipping routes continue to weigh on international commerce. Developments in West Asia have further heightened concerns around energy prices, freight costs and supply-chain stability, contributing to a more cautious outlook for global trade. Technology exports from Asia are nevertheless expected to remain an important source in of support for trade activity.

(Source: IMF-April 2026)

Monetary policy remained restrictive and data-dependent across major economies during the year, as central banks balanced inflation risks arising from elevated energy prices, supply-chain disruptions and ongoing geopolitical uncertainties. Policymakers continued to calibrate their actions based on evolving economic conditions, with concerns over broader price pressures contributing to a cautious policy outlook.

(Source: World Economic Outlook (IMF), WEO- April (IMF), S&P Global)

Outlook

The global economy enters 2026 amid heightened uncertainty, with world output expected to slightly dip to 3.1% before improving modestly to 3.2% in 2027. While technology-led productivity gains, including the increasing adoption of artificial intelligence across industries, continue to boost economic activity, the outlook remains subject to significant downside risks. Ongoing geopolitical tensions, particularly in West Asia, evolving trade policies and the potential for renewed energy and commodity price volatility are expected to remain key factors influencing global economic conditions over the near term.

Among the key regions relevant to the business, India is expected to remain one of the fastest-growing large economies, supported by domestic demand, digital adoption, and resilient consumption trends. Growth across the Middle East is likely to remain steady, aided by investment activity and diversification efforts. However, the outlook for the region remains subject to geopolitical uncertainty, which may affect energy prices, logistics routes, supply-chain stability, customer spending, and overall investor sentiment. Select African markets are expected to benefit from improving infrastructure, expanding digital penetration, and rising technology adoption.

Emerging markets sustain robust momentum above 3.9%, with China projected at 4.4% growth supported by domestic financial stimulus, even as external trade conditions, including

US trade relations, remain evolving. India continues to be a strong performer with 7.6% growth, supported by domestic demand, manufacturing expansion and digital innovation, while remaining an important market within the evolving global supply-chain landscape. Headline inflation eases gradually to

3.8% in 2026 and further to 3.4% in 2027, though advanced economies approach targets more slowly. Central bank policy rates decline steadily in the United States and the United Kingdom, hold steady in the euro area, and rise modestly in Japan. World trade growth moderates to 2.6% in 2026 amid tariff recalibrations yet remains underpinned by resilient technology exports.

West Asia tensions may continue to affect the global technology sector through disruptions to data center hubs, submarine cable routes, cloud infrastructure, and cross-border digital services. At the same time, ongoing diplomatic efforts and potential de-escalation could help moderate these pressures going forward. Elevated oil prices can also have a second-order effect by sustaining inflationary pressures and weighing on broader economic growth, which may in turn moderate technology spending and increase costs across markets.

Semiconductor manufacturing remains particularly sensitive to such disruptions, as helium is a critical and non-substitutable input, while interruptions in LNG-linked supply chains can extend lead times and raise production costs. As a result, the technology hardware supply chain is likely to remain more exposed than software-led businesses to ongoing geopolitical and supply-side risks.

(Source: World Economic Outlook (IMF), WEO- April (IMF), IEA, World Bank)

Indian Economy

The Indian economy in 2025-26 demonstrated resilience despite global backdrop of trade uncertainty and market volatility. Second Advance Estimates project real GDP growth at 7.6% and Gross Value Added at 7.7%, highlighting the durability of a growth model led by domestic demand. Robust demand for digital devices, enterprise technology solutions, and consumer electronics continued to drive market momentum, while improving business confidence and sustained demand across key sectors aided technology adoption and distribution volumes.

(Source: PIB)

India remains one of the worlds fastest-growing major economies, aided by resilient domestic demand, strong investment activity, and ongoing structural reforms. Latest estimates indicate that India is now the 6 th largest economy in the world, with an estimated nominal GDP of about $3.92 trillion in 2025. The country is expected to maintain its strong growth momentum and may improve its global ranking over the medium term as economic expansion continues.

(Source: Worldometer- IMF, Indian Express)

Private consumption remains a primary driver, aided by lower inflation and higher real incomes. Investments increased with public capital expenditure of 12.2 lakh crore (as per the Union Budget 2026-27), which enhanced infrastructure and spurred activity in manufacturing, construction, and energy. Government initiatives like Viksit Bharat 2047 and the IndiaAI Mission further support self-reliance and capacity building despite external pressures.

The West Asia War tensions could disrupt Indias technology sector particularly in semiconductor assembly, PCB manufacturing, electronics hardware, and firms dependent on imported chips or industrial gases. Helium constraints can delay deliveries and stretch production timelines, while prolonged disruption could affect the cost competitiveness of Indias emerging semiconductor ecosystem.

For Indian IT services, the short-term impact appears more limited, but a prolonged conflict could still affect demand indirectly through slower global growth and higher inflation. West Asia is also a meaningful market for Indian tech firms, so any extended disruption may affect onshore project execution and client spending.

The Union Budget for 2026-27 reaffirms the focus on driving economic growth while managing finances responsibly. By continuing to prioritize long-term investments in infrastructure and manufacturing, the budget supports the broader vision of a developed India. Significant emphasis has been placed on energy transition, digital innovation, and support for small and medium enterprises. New measures to simplify business operations and improve access to credit are expected to boost industrial production and create a solid foundation for sustainable future growth.

Average headline Consumer Price Index (CPI) Inflation (retail inflation) reached a historic low of 2.07% during FY 2025-

26. This price stability has been a key driver in strengthening domestic purchasing power. Moving forward, due to the global distress, the MoSPI finalized the inflation rate at 3.4% (as of March 2026). This stability is supported by fiscal discipline and steady growth in bank credit. Furthermore, the banking sector remains resilient with strong capital reserves and low levels of bad loans.

Indias foreign exchange reserves remained robust at approximately $681.38 billion for the week ended May 22, 2026. However, they moderated from earlier-year peaks amid foreign exchange market interventions and volatility in global energy markets. Separately, India continued to strengthen its position among the worlds largest economies, supported by sustained domestic economic growth and expanding economic activity.

(Source: PIB, Economic Times)

Outlook

The outlook for the Indian economy remains positive and stable. For the upcoming FY 2026-27, real GDP is expected to grow between 6.8% and 7.2%. This demonstrates Indias ability to maintain strong momentum even during times of global uncertainty.

This growth will likely be driven by continued government spending on infrastructure, a steady increase in private sector investment, and a strengthening manufacturing base. Additionally, the services sector is expected to maintain its consistent expansion. Supported by a stable economy and steady policies, India is well-prepared to manage global challenges while ensuring that economic progress remains inclusive and sustainable over the long term.

The Government of Indias India Semiconductor Mission continues to support the development of a domestic semiconductor ecosystem through capital incentives, infrastructure investments and design-linked support programs, strengthening the countrys capabilities across semiconductor manufacturing, assembly, testing and packaging activities while enhancing supply-chain resilience.

(Source: PIB)

Industry Overview

Global Information and Communication Technology Sector (ICT)

The Global Information and Communication Technology (ICT) sector is one of the fastest-growing and most transformative segments of the world economy in 2025. ICT encompasses a broad range of technologies, products, and services that facilitate the processing, storage, retrieval, transmission, and exchange of information. This sector includes IT services, hardware, software, telecommunications, 5G, cloud computing, IoT, and emerging technologies like AI and quantum computing.

The ICT sector is set to witness robust expansion, with worldwide ICT production growing by 10.2% in 2025 and by 10.3% in 2026, with a dip to 6.5% in 2027. Global ICT-related spending is projected to reach record highs, fueled by the exponential adoption of cloud services, advanced data processing, edge computing, and the roll-out of 5G connectivity. Developed economies in North America, Europe, and Asia-Pacific continue to lead in ICT adoption, while rapid digitalization in emerging markets is accelerating ICT penetration worldwide.

(Source: Atradius, Atradius 2)

Key growth drivers include:

• Accelerated digital transformation across sectors like manufacturing, healthcare, logistics, banking, and government.

• Rising use of AI, machine learning, and automation in business operations.

• High capital investment in next-generation networks and data centers.

• Growing demand from secure and high-priority sectors such as defence, public sector enterprises, education, healthcare, and financial services.

• Increased adoption of cybersecurity, cloud infrastructure, and secure device management solutions across enterprises.

• Expansion of digital infrastructure requirements in mission-critical and regulated environments.

				($ in Millions)
Category	2025 Spending	2025 Growth (%)	2026 Spending	2026 Growth (%)
Data Center Systems	4,89,451	46.8	5,82,446	19
Devices	7,83,157	8.4	8,36,275	6.8
Software	12,44,308	11.9	14,33,037	15.2
IT Services	17,19,340	6.5	18,69,269	8.7
Communications Services	13,04,165	3.8	13,63,058	4.5
Overall IT	55,40,421	10	60,84,085	9.8

(Source: Gartner)

MENA Region ICT Sector

The Information and Communication Technology (ICT) sector in the MENA region shows robust momentum. Regional IT spending is forecast to reach $169 billion in 2026, marking significant year-on-year growth. This expansion is driven by accelerated digital transformation across both public and private sectors. Key markets, such as the UAE, Saudi Arabia, and Egypt, are leading this growth, supported by national digital economy strategies like Vision 2030.

Growth is primarily fueled by large-scale investments in core technologies like cloud computing, cybersecurity, data center expansion, and rapid 5G network roll-out. Spending on software and IT services is increasing fastest. This reflects growing demand across major sectors, including financial services, energy, the public sector, and health. Cloud solutions and AI-driven analytics are enabling organizations to boost productivity and operational efficiency.

The regions focus on smart government initiatives and the drive to create knowledge-based economies are strengthening demand for ICT products. Data security, digital payments, and compliance with new digital regulations are also critical priorities amid rising cyber threats.

MENA Region IT Spending Forecast

($ in Millions)

Category	2025 Spending	2025 Growth (%)	2026 Spending	2026 Growth (%)
Data Center Systems	9,455	69.3	12,984	37.3
Devices	32,793	6.7	35,234	7.4
Software	17,949	11.7	20,452	13.9
IT Services	34,061	6.9	36,894	8.3
Communications Services	60,905	4.4	63,456	4.2
Overall IT	1,55,163	8.8	1,69,019	8.9

Indian Region ICT Sector

The Indian ICT (Information and Communications Technology) market is a core growth engine of the countrys digital economic story, combining IT services, software, hardware, infrastructure, cybersecurity, and communications services that underpin enterprise, government, and consumer digital use cases. The sector is anchored to largescale cloud, SaaS, and 5G-driven modernization across both public and privatesector verticals.

The Indian ICT market is valued at $155.57 billion in 2025, is projected to grow to $173.26 billion in 2026, and is expected to reach $274.86 billion by 2031, expanding at a CAGR of 9.67% during 2026- 2031, as per the Mordor Intelligence report. This growth reflects sustained digital budget increases in BFSI, telecom, government, and manufacturing, driven by cloudfirst mandates, data localization-aligned sovereign cloud projects, and rising penetration of digital payment and Industry 4.0-linked solutions.

By product type, the market is segmented into IT Hardware, IT Software, IT Services, IT Infrastructure, IT Security/ Cybersecurity, and Communication Services, with the individual sharemix anchored to the Mordor Intelligence segmentation framework. Within this, IT Services and Communication Services together form the dominant share of revenue, as organizations increasingly move from on-premises only legacy platforms to cloud-hosted, managed services, and hyperscale-centric consumption models, supported by expanding 4G and 5Genabled connectivity. IT

Hardware and software segments benefit from the domestic electronics manufacturing scheme linked to PLI pushes, while cybersecurity draws strength from the Digital Personal Data Protection Act driven compliance-spend uplift.

By enterprise size, the market divides into Small and Medium-sized Enterprises (SMEs) and Large Enterprises, with SMEs seeing relatively faster growth in consumption-based cloud and SaaS-oriented models. By industry vertical, the report covers Government and Public Administration, BFSI, IT and Telecom, Energy and Utilities, Retail Ecommerce and Logistics, Manufacturing and Industry 4.0, Healthcare and Life Sciences, Oil and Gas, and Other Industry Verticals, highlighting how each is digitizing workflows, integrating

AIenabled applications, and building out last-mile connected infrastructure. BFSI and government e-governance platforms, in particular, are key budget-anchors, as they scale up the authentication-stack-driven by India-Stack-linked transactions and digital-identity-based service-delivery systems.

Key Drivers and TechnologyTrends

The sectors growth is driven by multiple policy and technology-linked impulses explicitly highlighted in the source report:

• Rapid adoption of cloud services among Indian SMEs, which is adding a directional uplift to the overall CAGR as small firms adopt low-up-front-cost, pay-peruse platforms.

• Government-led Digital India and e-governance push, including sovereign-cloud-preferred architectures and cental-digital-ID-aligned services, which are reshaping procurement and IT-modernization roadmaps across federal and state agencies.

Long-term fiscal and regulatory measures announced under the Union Budget 2026-27 are expected to strengthen Indias digital infrastructure ecosystem by encouraging data localization, enhancing data governance frameworks and supporting domestic technology capabilities. These initiatives are likely to accelerate cloud adoption across industries as organizations increasingly invest in compliant, scalable and locally hosted digital solutions.

• Expansion of domestic electronics manufacturing schemes (PLI), supporting local assembly and component-value-add and helping to reduce import content in hardware-driven ICT spends.

• Surge in mobile-data consumption and 5G rollout, driving demand for fibre-backhaul, data-centers, edge-compute, and low-latency use cases such as real-time video, public-safety-IoT, and smart-city-infrastructure.

• Rising venture capital investment in Indian SaaS and platform startups, which is reinforcing the software-and-services wedge of the ICT stack and positioning India as a global services and product innovation hub.

• Growing demand for cybersecurity and data protection solutions amid tightened data regime frameworks, increasing the share of managed-security, compliance-audit, and zero-trust-architecture-linked spend within enterprise ICT budgets.

At the same time, the market is shifting toward cloud-native, subscription-based, and outcome-based ICT models, which compress hardware-to-services ratios and deepen the software and managed-services content per dollar spent. Hyperscale cloud providers and sovereign data center operators are expanding capacity in India, further stimulating demand for colocation, managed-network, and edge-analytics-linked infrastructure.

The sector is moderately concentrated, with a mix of large Indian IT services champions, telecom incumbents, hyperscale cloud providers, and domestic SaaS and cybersecurity players competing across the product-type and vertical segments. Future competitiveness is increasingly being shaped by the ability to offer integrated sovereign cloud solutions, AI-enabled analytics and cybersecurity-hardened delivery models tailored to regulated industries, while effectively managing region-specific talent and infrastructure cost pressures.

(Source: Mordor Intelligence)

Global Consumer IT

PC and AI-Capable PC Market

The global PC market grew significantly in 2025. Shipments went up by about 9.1% year-on-year. This growth was driven by companies upgrading their systems, the shift away from Windows 10 (which is nearing end-of-support), and new technology trends. Total worldwide shipments for the year were over 278.7 million units, showing strong demand for notebooks, desktops, and workstations everywhere.

(Source: Omdia)

The main reason for this surge is the fast adoption of AI-capable PCs. These devices mix standard computing hardware with specialized AI processors like Neural Processing Units (NPUs) and better GPUs. Gartner reports that AI-capable PCs about accounted for 31% of all PC shipments in 2025, a sharp rise from 15% last year. This means over 77 million AI-enabled

PCs were shipped globally. This reflects users wanting devices that can handle real-time AI apps, machine learning, and smart automation.

Several factors are supporting growth in the AI PC market, including the increasing integration of artificial intelligence capabilities into operating systems, productivity applications and device hardware. Demand is also supported by the Windows refresh cycle following the end of support for Windows 10, encouraging enterprises and consumers to upgrade to newer AI-enabled devices. Consumers are increasingly adopting AI for productivity and data analysis. Companies are investing heavily in new hybrid computing architectures that combine the CPU, GPU, and NPU. This mix delivers high-performance computing specifically for AI tasks.

At the same time, higher component costs associated with advanced processors and AI hardware may lead to relatively higher device prices, which could soften demand in certain price-sensitive segments.

The AI PC market is set for huge expansion this decade. Projections show the market size will grow from about $91.23 billion in 2025 to over $260.43 billion by 2031, with a CAGR of around 19.1%. This trend confirms that AI-capable PCs becoming essential for personal and work use globally.

Items	2023	2024	2025
	Shipments	Shipments	Shipments
AI Laptops	20,136	40,520	1,02,421
AI Desktops	1,396	2,507	11,804
AI PC Units Total	21,532	43,027	1,14,225

(Source: ITpro-Gartner, ABI Research, Markets & Markets, Gartner)

Enterprise and Cloud

The global Enterprise market continues to grow steadily, fueled by worldwide digital transformation. Total enterprise spending on software, services, and infrastructure is projected to reach $6.15 trillion in 2026. Enterprise software alone will reach about $1.4 trillion. North America leads the market (over 40% revenue), while Asia-Pacific shows the fastest adoption.

Cloud computing is central to this growth, surpassing $723.4 billion in 2025. Public cloud services like IaaS, PaaS, Daas and SaaS dominate the market, with SaaS revenues nearing $299.1 billion. While IaaS accounts for $211.9 billion, PaaS and DaaS reach $208.6 billion and $3.8 billion, respectively, representing 21.5% year-over-year growth driven by AI adoption. Cloud-native architectures (using Kubernetes and containers) are now the standard for faster, scalable application development.

(Source: Nutanix, Computer World-Gartner, CIO, CXOToday)

Artificial Intelligence (AI) is now embedded in cloud services, boosting automation and analytics. Enterprises using AI-enabled cloud platforms expect up to a 30% improvement in operational efficiency. Simultaneously, Security remains critical, demanding comprehensive cloud security and compliance. Finally, Edge computing is gaining momentum, driven by the increased use of IoT and 5G, which requires fast, localized data processing.

Mobility

The global smartphone market remained on a steady growth path in 2025, with shipments estimated to reach approximately

1.25 billion units, reflecting moderate but steady growth driven by increasing consumer demand in emerging markets and technological advancements in mature regions.

This expansion is primarily driven by the rising adoption of 5G technology, which accounts for over 50% of new sales globally. Innovation, including foldable displays and embedded AI features, is rapidly reshaping purchase preferences.

The mid-range segment remains the volume leader, especially in Asia-Pacific. Premium devices see steady demand in developed regions. While supply chain resilience is better, geopolitical tensions and component shortages remain risks. Manufacturers are tackling this by diversifying sourcing.

Sustainability has been the key focus. Industry leaders are committed to reducing their carbon footprints by increasing the use of recycled materials and promoting device refurbishment programs.

Source: Omdia, Telecom)

Indian Consumer IT

The Indian PC market posted its strongest-ever performance in 2025 but now faces a 2026 outlook clouded by higher component costs and softer demand.

Indias personal computer (PC) market, encompassing desktops, notebooks, and workstations, shipped a record 15.9 million units in 2025, up 12.5% year-on-year,, marking the highest annual shipment volume in the countrys history. The notebook segment was the main driver, with shipments rising 15.2% to 12.3 million units, while desktop shipments increased 4% to 3.6 million units, reflecting continued demand for stationary workstations and homeuse systems.

For 2026, Omdia forecasts a 9.8% decline in PC shipments to 14.3 million units, as rising component costs and supply-side pressures reduce affordability and availability, particularly in the mass-market and entry-level segments. Price increases for memory, storage, processors, and GPUs are expected to compress margins for OEMs and raise effective device prices for consumers, leading to slower refresh cycles and more cautious buying.

Within the 2025 surge, notebooks continued to anchor the cycle, supported by hybrid work habits, productivity-upgrade demand, and the early rollout of AIready devices into both business and consumer segments. Desktops, while growing at a more modest pace, retained a stable share in enterprise, government, and education-linked bulk-procurement programs, as well as in gaming and small-business-use environments. Omdia also notes that higherend configurations and premium-spec systems are gaining share relative to low-end SKUs, as the cost gap between mainstream and higher-performance PCs narrows and buyers seek longer-lifecycle machines.

The Indian PC market is thus entering a two-phase narrative:

• An exceptionally strong 2025 base that exceeded the pandemic-driven highs of FY 2021-22.

• A 2026-scrambling phase where elevated component prices, supply-tightness, and weaker consumer-affordability slow volumes but simultaneously accelerate premiumization and longer-upgrade-cycles in both consumer and enterprise segments.

For OEMs and channel partners, this environment is pushing strategies toward value-engineered high-spec configurations, bundled service and warranty packages, and stronger EDU/ enterprise-tender-focusing, while the mass-market consumer and DIY-gaming-PC segments face the most direct pressure from rising DRAM and SSD price shocks.

(Source: Indian Express, Omdia)

India desktop and notebook forecast
Segment	2025 shipments	2026 shipments	2027 shipments	2026 annual growth	2027 annual growth
Consumer	7,045	6,231	6,643	-11.6%	6.6%
Commercial	7,946	7,154	7,687	-10.0%	7.4%
Government	280	254	265	-9.3%	4.1%
Education	561	642	624	14.3%	-2.8%
Total	15,832	14,281	15,219	-9.8%	6.6%

Mobility/Smartphone

The Indian Mobility/Smartphone market is a large-scale, price-sensitive, and technology-velocity-driven sector that anchors mobile internet-driven commerce, education, government services, and entertainment for a population approaching 1.4 billion. The market is anchored by increasing 5G penetration, rising digital adoption, and a mix of ultra value and aspirational premium segments that together sustain high unit volumes and gradual value growth.

The Indian smartphone market reached 163.72 million units in 2025 and is projected to grow to 295.92 million units by 2034, expanding at a CAGR of 6.53% during the forecast period 2026-2034, as per the IMARC Group report. This growth reflects the continuing shift from feature phones to smartphones, deeper internet penetration, and the rollout of 5G-enabled infrastructure that supports higher bandwidth usage patterns while devices remain relatively affordable across a wide income spectrum.

By distribution channel, online stores led with 48.6% share in 2025, reflecting the dominance of e-commerce-driven smartphone purchasing behavior, exclusive online launches, flexible EMI options, and ease of comparison shopping. Offline retailers and

OEM-owned sales channels still hold a sizeable share, especially in Tier-II and Tier-III cities and in category service and exchange-linked propositions.

Rising internet penetration and digital adoption, with Indias active internet user base reaching about 958 million in 2025, half of which are in rural regions, sustain demand for capable but affordable smartphones as primary devices for banking, education, and government services.

Rollout of 5G network infrastructure, with India becoming the worlds second-largest 5G user base, driving upgrade cycles toward 5G compatible devices across mid and entry levels, and supporting video-streaming, gaming, and cloud usage-linked applications. Technological innovation and feature advancement, including AI-driven photography, longer battery life, improved multi-lens cameras, and higher frame rate displays, are creating aspirational drivers for replacement cycles and premium uptake.

The Indian smartphone market is highly competitive, with a mix of global players and domestic franchise and design players competing through product differentiation, price positioning, and marketing and sports sponsorship-linked strategies. Over the forecast period, the sector is expected to see premium segment value growth outpacing volume growth, while the low and midrange bands continue to deliver mass uptake within the 163.72 million units to 295.92 million units trajectory at 6.53% CAGR.

(Source: Imarc Group)

Cloud

The Indian cloud computing market is a core engine of the countrys digital-economy transformation, enabling enterprises, government, and consumers to host workloads, store data, and deploy applications on shared, elastic infrastructure rather than onpremiseonly hardware stacks. The sector is anchored to hyperscale-sized data centers, sovereign cloud style deployments, and a rapidly expanding SaaS ecosystem.

The Indian cloud computing market was valued at $37.11 billion in 2025 and is expected to reach $266.90 billion by 2034, expanding at a compounded annual growth rate of 24.51% during the forecast period 2026-2034, as per the IMARC Group report. This near-8x growth reflects the shift from legacy on-premises IT to pay-per-use cloud models across BFSI, government, telecom, retail-e-commerce, healthcare, and MSME-centered digital platforms, all supported by improving connectivity and data-center infrastructure.

By service type, the market covers Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS), with SaaS emerging as the dominant share driver due to the widespread adoption of enterprise-productivity suites,

ERP/CRMSaaS, and vertical-specific-application-catalogues across large and midsized firms. IaaS continues to form the foundational layer, as enterprises adopt cloud native compute, storage, and managed network offerings, while PaaS enables custom application development and container-backed deployment without full-stack infrastructure ownership.

Across sectors, BFSI, telecom, and government are among the largest buyers, followed by retail-e-commerce, logistics, healthcare, and manufacturing, each leveraging cloud data platforms and analytics stacks to manage large volumes of transactions, customer data, and supply chain signals.

Public cloud services dominate the market, with infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS) segments all showing substantial growth.

SaaS leads in revenue generation, reflecting widespread adoption of cloud-based enterprise applications. Hybrid cloud solutions are gaining traction as organizations seek flexibility and control over sensitive data.

Data center capacity in India is expanding rapidly to meet this demand, doubling from 770 MW in 2022 to 1,500 MW by 2025, supporting cloud infrastructure growth. Regulatory developments, including the implementation of the Digital

Personal Data Protection (DPDP) Act, 2023 and the notification of the DPDP Rules, 2025, along with RBI requirements relating to financial data governance and localization, are driving increased investments in cloud infrastructure, cybersecurity and data management capabilities by both global hyperscalers and domestic cloud service providers. The Union Budget 2026-27 has further supported the sector by proposing a tax holiday till 2047 for eligible foreign cloud service providers using India-based data centers for global operations.

(Source: Imarc Group, PIB)

Digital and 3D Printing

The Indian 3D printing (additive manufacturing) market is a rapidly expanding, digitally-driven manufacturing layer that complements traditional fabrication with on-demand, design-centric production of prototypes, tooling, and enduse parts across healthcare, automotive, aerospace, defense, construction, and education. The sector is now transitioning from a niche prototyping tool toward a core industrial-manufacturing and digital-inventory-enabling capability. The Indian 3D printing market was valued at $860.42 Million in 2025 and is projected to reach $5,232.03 Million by 2034, registering a CAGR of 20.83% during the forecast period 2026-2034, as per the IMARC Group report. This near 3.3x growth from $334.04 Million in 2020 to $860.42 Million in 2025 underlines Indias emergence as one of the fastest-growing additive manufacturing markets globally, driven by policy push for domestic manufacturing, rapid-prototyping demand, and technology-spillovers from aerospace, defense, and healthcare.

Looking ahead, the sector is expected to evolve into a digitally-integrated, distributed-manufacturing ecosystem, where digital inventories and on-demand, locally-distributed

AM hubs support cost-efficient spare parts manufacturing across railways, defense logistics, and Tier-3-city-industrial clusters, all within the $860.42 Million (2025) to $5,232.03 Million (2034) at 20.83% CAGR trajectory.

(Source: Imarc)

Solar Energy

The Indian solar energy market is a core pillar of the countrys power system transformation and net-zero-aligned infrastructure strategy, supplying utility-scale, distributed, and off-grid PV-based generation that supports industrial, commercial, residential, and agricultural electrification needs.

The sector combines competitive auctions, policylinked incentives, and technology-driven cost reduction to create one of the fastest-growing power capacity segments in the world.

The Indian solar energy market has expanded installed capacity from about 100+ GW in earlier years to 145.83 GW by

2026, and is projected to reach 348.57 GW by 2031, reflecting the impact of the 500 GW national renewables target and a multi-year pipeline of central and state-level tenders. This growth is anchored by large-scale PV-farm developments in Western and Southern states, as well as rising deployment of rooftop and off-grid systems, which together are reshaping Indias power-supply mix and reducing dependence on coal-based generation in the peaking and mid-merit bands.

The Indian solar energy market is expected to remain at the core of the countrys power sector modernization, with the 145.83 GW (2026) and 348.57 GW (2031) capacity trajectory anchored to the national 500 GW renewables target and round-the-clock tender designs that increasingly bundle four-hour battery storage to earn tariff premiums during evening-peak periods. Storage integration, green-hydrogen-alignment, agrivoltaics and canal top schemes, and digital approval and banking reform policies will continue to shape the sectors growth profile, even as grid-flexibility constraints and land acquisition bottlenecks remain key watch items for project financing.

Opportunities and Threats Opportunities

Indias accelerating digital transformation, across businesses and society, presents significant opportunities for the technology sector. The market base is expanding rapidly due to increased internet penetration, particularly across Tier 2 and Tier 3 cities, alongside sustained growth in smartphone adoption. These trends create fundamental demand for technology solutions across the country.

Demand for integrated technology solutions is further stimulated by key digital transformation initiatives across global markets. Moreover, the growing adoption of advanced digital technologies, such as cloud computing, Artificial Intelligence

(AI), the Internet of Things (IoT), and robust cybersecurity solutions, by both large enterprises and Small and Medium Businesses (SMBs) creates substantial new avenues. This allows distributors to offer higher-margin, value-added services far beyond basic product distribution. As businesses across geographies increasingly prioritize digital resilience, operational efficiency, and scalable technology infrastructure, the opportunity for integrated solution offerings continues to expand.

Indias increasing status as a global manufacturing hub and a primary destination for Global Capability Centers (GCCs) presents another major opportunity. This growth necessitates increased demand for complex, integrated technology solutions and sophisticated supply chain support. The countrys large, young, and highly skilled talent pool reinforces its appeal for global technology investments, serving as a powerful catalyst for the entire distribution ecosystem.

Threats

The industry faces several challenges that could affect profitability and market positioning. Intense competition across the value chain continues to exert pressure on pricing and margins, while rapid technological advancements require increasing investments in talent development, technical capabilities and portfolio enhancement.

Operational stability may also be impacted by supply chain disruptions arising from geopolitical developments, trade restrictions, logistics constraints and raw material shortages. These factors can lead to extended lead times, inventory imbalances and cost volatility.

The structural evolution of the industry presents additional challenges through the entry of new participants and consolidation among existing players. Industry consolidation may influence vendor preferences towards a smaller group of strategic distribution partners, increasing competition for mandates, geographic coverage and portfolio relevance. This could also elevate concentration risks and intensify the need for distributors to differentiate themselves through scale, capabilities and value-added services.

The industry also continues to face a shortage of skilled talent in emerging technology domains such as artificial intelligence, cloud computing and cybersecurity, which may constrain the ability to deliver specialized solutions and services. Further, evolving cybersecurity requirements and data privacy regulations are increasing compliance obligations and operational complexity across the technology ecosystem.

Standalone nancial performance

The standalone financial statements of the Company has been prepared in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Companies Act, 2013 (the Act) read with the Companies (Indian Accounting Standards) Rules, as amended from time to time.

The standalone financial statements are presented in Indian

Rupees (). Financial information has been rounded off to the nearest Crore unless otherwise indicated.

Financial year 2025-26 has been a year of robust growth in both revenue and profitability due to favorable market conditions and continuing strong partnership.

This being an analysis of the standalone business performance, dividend income from subsidiaries and one-off income over the years has not been considered, as these are not reflective of underlying operational performance, except for computation of per share data.

Revenue

Revenue grew by 30.5% during the financial year 2025-26 with a CAGR of 22.9% over 5 years. Favorable market conditions, higher growth in mobility segment and emergence of data centers contributed to higher revenue growth during the year, in addition to double digit growth across all segments.

The Companys strategy to grow in Android market segment through Direct to Retail (DTR) model contributed to increase in revenue share from Mobility segment. Android contribution to the total revenue over a period of 5 years increased from 1.3% to 10.2%.

The Companys decision to participate in large deals increased the revenue by 3.8% during the financial year 2025-26. This is a significant increase in revenue with minimal utilization of working capital.

Gross Margin

Gross margin grew by 21.7% during the financial year 2025-26

(from 1,924 Crores to 2,342 Crores) as compared to revenue growth of 30.5% with a CAGR of 21.0% over 5 years.

Overall gross margin percentage reduced marginally to 3.7% from 3.9% due to:

• Change in revenue mix resulting from higher share of revenue from mobility segment with lower gross margin percentage and lower utilization of working capital.

• Lower gross margin percentage from large deals. Large deals are offered with lower gross margins with minimal working capital deployment.

However, gross margin percentage remained constant across business segments during the

Expenses

Employee bene t expenses

Employee cost continues to remain at 0.6% of revenue. The company is conscious of cost and hence ensured that employee cost remained constant as a percentage of revenue.

Employee cost increased by 32.2% during the financial year

2025-26 as compared to previous year, due to:

Annual increments (Including retirement benefits and incentives) and increase in manpower cost, reflecting improved business performance and employee contributions during the year, contributing to 18.0% of the increase.

• Capability building in new-age technology like AI, cloud, software & security, which is growing to be a dominant business line in future. The Company has also invested in fast-growing businesses like Mobility resulting in higher growth in terms of Revenue. It is important to develop capability to ensure Customer Success to remain relevant in these business lines. Manpower investment in capability building contributed to 8.7% of the increase.

Indian market is going through an influx point. Rapid adoption of technology, change in technology, higher ratio of adoption of cloud and high investment in data centers necessitates quality manpower to handle the business requirements. Understanding this requirement, the Company is investing in capacity, capability & technology to be future ready for any business opportunity. Investment in manpower expected to be the differentiator for the Company in future years.

SCM Expenses

Supply chain expense constitutes expenses paid to ProConnect for warehousing and transportation of products. It is variable to revenue and hence it has increased by 5.2%, due to revenue growth. Various year 2025-26. cost control measures implemented in ProConnect has reduced the cost of operation & transportation as a ratio of revenue.

Other expenses

Other expenses are constantly reducing as a percentage of revenue. It has moved from 1.07% of revenue in financial year 2021-22 to 0.86% of revenue in the financial year 2025-26 and has increased at a CAGR of 18.0% over the past 5 years, which is lesser than revenue CAGR of 22.9% over similar period. The improvement in ratio is achieved though the company has been investing in adopting of new-age technology.

During the financial year 2025-26, other expenses increased by 19.2% predominantly due to:

• De-recognizing of Land and Building which was capitalized in an earlier year, pursuant to a court order arising with respect to the legality of title, resulting in one-off write-off of fixed asset amounting to 1.0% of increase.

• Provision of bad & doubtful debts contributed to 13.5% of increase. This is a higher percentage of increase as compared to earlier years due to one-off provision created. The company will put in effort to collect the dues in future.

There has also been gain on fair valuation of forward cover reducing opex by 4.8% for the financial year 2025-26.

EBITDA

EBITDA grew by 20.1% in line with gross margin growth.

EBITDA% reduced from 2.4% in financial year 2024-25 to 2.2% in financial year 2025-26 due to:

• Higher share of revenue from mobility segment with lower gross margin percentage and lower utilization of working capital.

• Lower gross margin percentage from large deals. Large deals are offered with lower gross margins but with minimal working capital deployment.

EBITDA CAGR of 22.6% over a 5-year period is in line with gross margin CAGR of 22.9% for similar period which is reflective of our strong operating leverage and cost discipline.

Finance costs

Finance costs substantially decreased by 16.82 Crores on account of decrease in average working capital due to sales mix, lower deployment of capital in large deals and effective working capital management. Average borrowing rate marginally reduced to 6.4% from 6.7% in the previous financial year.

Interest coverage ratio has increased from 9.05 times in 2024-25 to 12.51 times in 2025-26, on account of decrease in finance cost and increase in EBITDA.

The closing borrowings chart is depicted below:

* Closing borrowings significantly reduced during covid period

Pro t before tax (PBT)

PBT grew by 25.6% as compared to EBITDA growth of 20.1%. Higher PBT is due to lower interest cost on account of lower working capital utilization and marginal reduction in interest rate. Reduction in working capital is due to sales mix and revenue from large deals with minimal working capital requirement.

monitoring risk exposures against appetite, and reporting material risks to management and the Risk Management

Committee.. This governance model ensures that risks are proactively managed at the business level while enterprisewide visibility, disciplined oversight, and a strong riskaware culture across the Group.

Policy and Processes

Redingtons ERM policy is based on the principles, framework and processes outlined in ISO 31000:2018 and COSO: ERM 2017. The policy provides a structured, enterprise-wide approach to identifying, assessing, prioritizing, responding to, and monitoring risks. The policy integrates top-down, bottom-up, and outside-in perspectives to ensure comprehensive coverage of strategic, operational, financial, regulatory, ESG, and external risks. Risks are reviewed through a formal, periodic reporting cadence, with clear escalation protocols for high-impact or rapidly emerging risks.

Cautionary Statement

Please note that some statements in the Management Discussion and Analysis (MDA) section regarding future from prospects are forward-looking. These involve inherent risks and uncertainties, both identified and not, which could cause actual results to differ significantly. Unforeseen risks, such as changes in the macro environment, geopolitical tensions or global pandemics like COVID-19, may also impact the Company and its operations. The figures in this Report are based on assumptions from currently available internal and external information. As underlying factors can change, these estimates are also subject to revision. These forward-looking statements reflect the Company s intentions, beliefs, or expectations only as of their date, and the Company is not obligated to revise or update them based on new information or future events.