Mumbai, Feb 12 (NationPress) Black Box Limited, a prominent provider of digital infrastructure solutions, has revealed its unaudited financial performance for the quarter and nine months concluding on December 31, 2025. The company showcased consistent growth, with notable enhancements in both revenue and operating profit, underpinned by robust performance across its primary markets.

With its transformation initiative now firmly established and a targeted go-to-market strategy implemented, the Company is progressing towards greater revenue acceleration and a more refined business mix. Backed by an increase in order wins, a growing backlog, enhanced execution, strengthened client relationships, and a solid pipeline, the Company is well-positioned for continued growth in the upcoming quarters.

Revenue for Q3 FY26 reached ₹1,660 crore, marking an increase from ₹1,585 crore in Q2 FY26, which translates to an 11% year-on-year growth and a 5% quarter-on-quarter boost, driven by steady execution and heightened momentum. The EBITDA for the quarter was ₹147 crore, indicating a 10% year-on-year growth and a 3% quarter-on-quarter rise. The EBITDA margins held steady at 8.9%, aided by improved fixed-cost absorption and a balanced business composition.

Continuous efforts in operational efficiency and cost optimization suggest potential for further margin expansion as strategic priorities are executed in the coming quarters. Profit after tax (PAT) was recorded at ₹50 crore, compared to ₹56 crore in Q3 FY25 and Q2 FY26, respectively. The PAT was notably affected by a one-time exceptional impact of ₹6 crore due to adjustments in employee benefit provisions stemming from the New Labour Code. As revenue growth accelerates, PAT growth is anticipated to surpass topline growth, fueled by margin normalization, enhanced revenue quality, and increased contributions from high-value opportunities.

Business and Operations Highlights

For the nine months of FY26, the company secured orders totaling $626 million (approximately ₹5,466 crore). The organization is on track to achieve $1 billion (around ₹9,000 crore) in orders for FY26, bolstered by a strong pipeline. The order backlog as of December 31, 2025, stood at $601 million (₹5,402 crore), having increased by about $100 million over the nine months of the current fiscal year, spurred by robust order bookings, particularly from the datacentre sector. Investments in the datacentre vertical have begun to yield results, with momentum expected to persist in the forthcoming quarters. The projected order backlog at the end of FY26 (March 31, 2026) is anticipated to exceed $800 million, surpassing earlier estimates of $700 million (₹6,300 crore).

Key orders during the quarter include datacentre contracts from hyperscalers, several orders from the US public sector, a significant contract from an Indian internet giant, and a major order from an Australian bank.

Strategic Expansion

Black Box has entered into definitive agreements to acquire 100% equity of 2S Inovações Tecnologicas S.A., a Brazilian technology firm headquartered in São Paulo, subject to customary closing conditions and necessary approvals. The transaction is expected to be finalized by the end of March 2026. This acquisition strengthens Black Box's global growth strategy focusing on technology, innovation, and expanding technological capabilities through the 2030 cycle.

This move is aligned with Black Box's global strategic objective of achieving US$ 2 billion in annual revenues by 2030. Brazil plays a crucial role in this global expansion due to its robust technology ecosystem, access to highly skilled talent, and its potential as a hub for developing technological solutions for other markets. The acquisition of 2S fortifies this strategic positioning and further enhances Black Box's presence in the country, establishing Brazil as a central platform for its global operations.

Sanjeev Verma, Executive Director & CEO of Black Box, stated: “Our Q3 performance reflects the effectiveness of our targeted go-to-market strategy and improved execution across various regions. With order bookings on track to achieve $1 billion in FY26 and backlog anticipated to increase significantly beyond earlier estimates, we enter FY27 with strong revenue visibility and momentum. As the business mix continues to evolve and high-value opportunities scale, we are optimistic about accelerating growth while enhancing the quality and resilience of our earnings. The acquisition of 2S marks a pivotal moment for Black Box. By merging 2S’s CISCO and cloud expertise with Black Box’s infrastructure and A/V capabilities, we are positioned to deliver a cohesive enterprise solution, drive digital transformation across the rapidly growing LATAM market, and strengthen our networking and datacentre business. This integration will enhance efficiency and innovation for our LATAM customers, while also creating long-term value for our stakeholders.”

Deepak Bansal, Chief Financial Officer of Black Box, added: “We achieved stable revenue growth with consistent operating margins during the quarter, supported by disciplined execution and enhanced cost absorption. While PAT was affected by a one-time provision related to the New Labour Code, the underlying profitability trajectory remains strong. With a growing backlog, improving revenue mix, and ongoing operational efficiencies, we anticipate earnings growth to progressively strengthen in the upcoming quarters. Our financial position empowers us to support both organic expansion and strategic inorganic initiatives while maintaining fiscal discipline. The proposed acquisition of 2S reflects strategic capital allocation that enhances our growth and profitability profile. We expect to generate approximately ₹500 crore in revenue in FY27 and aim to complete integration and synergy within 90 days post-closing. This acquisition fortifies our long-term shareholder value, while our balance sheet remains robust enough to support disciplined organic and inorganic growth.