Did Black Box Report Strong Financial Performance in Q4 & FY25?

Mumbai, May 27 (NationPress) Black Box Limited, a prominent provider of digital infrastructure solutions, has released its audited financial results for the quarter and fiscal year concluding on March 31, 2025.

The company showcased a consistent enhancement in profitability and operational effectiveness, bolstered by meticulous execution and strategic portfolio adjustments. Key performance indicators reflected positive trends in EBITDA, PAT, and margins, alongside a growing order book and a fortified balance sheet.

For the fiscal year FY25, revenue amounted to Rs 5,967 crore, a decline from Rs 6,282 crore in FY24, primarily due to postponed customer decisions and a strategic withdrawal from low-margin accounts. However, these actions led to significant margin improvements, with EBITDA soaring by 24 percent year-on-year to reach Rs 531 crore, and EBITDA margin expanding by 210 basis points to 8.9 percent. PAT experienced a remarkable 49 percent year-on-year increase to Rs 205 crore, with PAT margin enhancing by 120 basis points to 3.4 percent. Looking ahead, Black Box anticipates that its revamped go-to-market approach and optimized pipeline execution will catalyze revenue growth starting in Q2 FY26.

The performance in Q4FY25 remained robust, with revenue climbing to Rs 1,545 crore, reflecting a 4 percent year-on-year increase. EBITDA for the quarter was reported at Rs 147 crore, marking a 21 percent year-on-year rise, with a margin of 9.5 percent—an enhancement of 130 basis points. PAT for Q4FY25 surged 48 percent year-on-year and 8 percent sequentially to Rs 60 crore, with PAT margin rising by 120 basis points to 3.9 percent.

Order momentum was strong throughout Q4FY25, with the company securing over Rs 1,550 crore in new deals—more than double the average from the previous three quarters. Notable contracts included a Rs 240 crore digital modernization project with a major U.S. hospital network, over Rs 225 crore in data center services for global hyperscalers, and significant engagements in transportation and education sectors, including a Rs 90 crore project with a leading U.S. university. As of March 31, 2025, the consolidated order backlog stood at $504 million, covering roughly two-thirds of projected revenue for the upcoming fiscal year.

In line with its India growth strategy, Black Box has committed Rs 100 crore to bolster its domestic operations and enhance its Bengaluru Centre of Excellence. During the year, the company secured two significant Indian contracts totaling Rs 180 crore to support the development of telecom and municipal infrastructure, aligning with its goal to double revenues from India.

In recognition of its strong operational and financial performance, the company has proposed a final dividend of 50 percent (Re 1 per share on a face value of Rs 2), pending shareholder approval. Moreover, CRISIL upgraded Black Box's long-term credit rating to BBB+/Stable in March 2025. The company also successfully recruited strategic leadership across its newly established customer-focused verticals and offering-focused horizontals, effectively implementing its revamped go-to-market strategy.

Sanjeev Verma, Whole Time Director, commented: "Our strategic focus on high-value customer segments and operational rigor has resulted in a meaningful expansion in both our order book and profitability. The ongoing digital and AI-driven transformation across industries presents structural growth opportunities, and we are well-positioned to capitalize on them."

Deepak Kumar Bansal, Executive Director and Global CFO, added: "FY25 marked strong progress in profitability and capital efficiency. Our EBITDA margins continue to move toward our double-digit target, supported by revenue quality and operational discipline. With strong ROE, a robust pipeline, and healthy cash reserves, we are confident in fulfilling our financial performance guidance for FY26."