Mumbai, Aug 14 (NationPress) Black Box Limited, a prominent provider of digital infrastructure solutions, has revealed its unaudited financial results for the quarter that concluded on June 30, 2025. The company showcased a robust performance, achieving year-over-year enhancements in both operating profit and net profitability, despite the persistent global tariff uncertainty affecting project timelines.

Building on the solid operational groundwork established in FY25, when the company successfully completed its multi-year turnaround and realized significant margin improvements, Q1 FY26 demonstrated ongoing discipline in execution, strong profitability, and a growing order book.

The revenue for Q1 FY26 was reported at Rs 1,387 crore, down from Rs 1,423 crore in Q1 FY25. The delay in equipment procurement by some clients, attributed to the current tariff climate, led to postponements in service execution and revenue recognition.

EBITDA for the quarter reached Rs 116 crore, reflecting a 1% year-over-year increase. EBITDA margins experienced a 30 basis point rise to 8.4% in Q1 FY26 on a year-on-year basis, despite lower fixed cost absorption due to reduced revenues.

Profit after tax (PAT) increased by 28% year-on-year, climbing to Rs 47 crore from Rs 37 crore in Q1 FY25. PAT margins improved by 80 basis points, driven by decreased exceptional items and lower tax liabilities.

Business and Operations Highlights

Order momentum remained robust, with the backlog at the close of Q1 FY26 at Rs 4,433 crore ($518 million), an increase from Rs 4,313 crore ($504 million) at the end of FY25. Order bookings during the quarter were substantial at Rs 1,506 crore ($176 million), marking a strong commencement towards the company’s revenue growth objectives.

Nearly two-thirds of all contracts secured in Q1 FY26 were high-value engagements, illustrating the success of the ongoing transformation and the company’s strategic emphasis on large-scale projects with prestigious global clients.

The company also continued to refine its customer portfolio by minimizing the long tail of low-value accounts, reducing the total to below 1,000 from approximately 1,500 last year. Black Box continues to leverage its global reach and local expertise to secure large-scale, high-value projects across various regions.

Significant order victories during the quarter included a substantial project in the United States from a leading financial services firm, as well as a workplace solutions engagement with one of the largest OTT providers for their operations in Latin America. The company also gained two major data center orders in the U.S., one from a global hyperscaler and another from a top-ten global co-location provider.

Other noteworthy wins included a workplace solutions project in the U.S. from a top-tier city transport authority, a combined connectivity infrastructure and networking order from a notable public services organization, and a large networking contract from a renowned 200-year-old research university in the U.S.

Commenting on the results, Sanjeev Verma, Whole Time Director, stated, "Over the past five years, we have successfully transformed Black Box from a loss-making entity into a profitable, cash-generating business with a robust balance sheet. With the turnaround finalized, FY26 is focused on accelerating growth, scaling revenues, and achieving market leadership. While the year commenced with a slower pace, we are witnessing solid traction in key accounts and are actively pursuing numerous high-value opportunities. Backed by our unique capabilities, strong pipeline, and dedicated teams, we remain confident in achieving sustainable, long-term growth."

Deepak Kumar Bansal, Executive Director and Global CFO, remarked, “Although Q1 typically experiences lower performance compared to Q4, this quarter’s results also reflected client-driven delays in equipment procurement due to the ongoing tariff situation, impacting revenue recognition timing and operating margins. Nevertheless, we attained year-on-year growth in both EBITDA and PAT, showcasing our operational efficiency and margin resilience. With a solid order book, healthy cash reserves, and a fortified go-to-market strategy, we are confident in fulfilling our growth objectives for the remainder of the fiscal year.”