Mumbai, Nov 12 (NationPress) Black Box Limited, the technology arm of Essar and a prominent provider of digital infrastructure solutions, has disclosed its unaudited financial results for the quarter and half-year concluding on September 30. The company exhibited a strong financial performance, showcasing significant improvements in revenue, operating profit, and net profitability on a quarter-on-quarter basis.

With its transformation program stabilizing and a more focused approach towards market engagement, Black Box is strategically moving towards sustained revenue growth and a higher-quality business portfolio throughout FY26.

Supported by substantial order acquisitions, a growing backlog, and strengthened client relationships, the company is poised for growth and is optimistic about delivering impressive results in the second half of the fiscal year.

The revenue for Q2 FY26 was reported at Rs 1,585 crore, up from Rs 1,387 crore in Q1 FY26, marking a quarter-on-quarter increase of 14% and a year-on-year rise of 6%.

This robust revenue growth illustrates a strong recovery as tariff conditions have normalized and previous project execution delays from Q1 have been resolved, aligning the business back to its expected operational pace as it enters the latter half of the year.

The second half of FY26 is anticipated to outperform the first half, bolstered by a growing order book, enhanced pipeline visibility, and improved execution momentum across various regions.

EBITDA and EBITDA Margin (percentage)

For the quarter, EBITDA reached Rs 143 crore, an increase from Rs 116 crore in Q1 FY26, reflecting a 23% growth on a quarter-on-quarter basis and a 6% rise year-on-year. The EBITDA margin improved by 60 basis points sequentially to 9% in Q2 FY26, compared to 8.4% in Q1 FY26.

This enhancement is mainly attributed to increased revenue throughput, better absorption of fixed costs, and a well-balanced business mix. With ongoing initiatives for operational efficiency and cost optimization, there is further potential for additional margin expansion as strategic priorities are executed throughout H2.

Profit After Tax (PAT)

The Profit After Tax (PAT) stood at Rs 56 crore, rising from Rs 47 crore, indicating a growth of 17% on a quarter-on-quarter basis and 9% year-on-year, reflecting strong operating leverage and enhanced profitability in the core portfolio.

As revenue growth accelerates in H2 FY26, PAT is expected to grow faster than the topline, driven by margin normalization, improved revenue quality, and a greater contribution from high-value opportunities.

Business and Operations Highlights

Order momentum remained robust, with the backlog at the end of Q2 FY26 recorded at Rs 4,846 crore (US$555 million), an increase from Rs 4,523 crore (US$518 million) at the end of Q1 FY26. Order bookings for the quarter were strong at Rs 1,906 crore (US$218 million), reflecting an increase of US$42 million from Rs 1,536 crore (US$176 million) in Q1 FY26.

Significant orders during the quarter included extensions from large-value existing clients, networking, and connectivity services for the company’s largest global financial services customer, and further engagement from hyperscaler clients, establishing Black Box as a reliable partner in complex, high-value digital infrastructure projects.

The company also secured orders in the digital workplace from a US-based local county and a substantial contract from a healthcare institution. The Financial Services, Healthcare, and Data Center sectors continued to deliver high revenue across the various verticals served.

In addition to these expansions, Black Box achieved new client acquisitions in the education and municipal sectors in India, highlighting the growing scope of its market presence and the success of its market engagement strategy.

Partnership with Wind River

During the quarter, Black Box established a strategic global partnership with Wind River, an Aptiv company and a leader in intelligent edge software, aimed at accelerating edge and cloud innovation.

This collaboration allows Black Box to offer Wind River’s solutions globally, holding preferred partner status in India and the Middle East. Additionally, the company entered a separate agreement with Wind River to manage customer engagements across multiple regions globally.

This partnership is projected to generate approximately Rs 1,350 crore in revenue over the next five years (around US$30 million annually), further solidifying Black Box’s position in advanced edge, cloud, and AI-driven solutions.

Sanjeev Verma, Executive Director & Chief Executive Officer of Black Box, stated: “Q2 FY26 has been a remarkable quarter, with a 14% sequential revenue increase and broad-based growth across key markets. Our transformation journey is fostering sustained, profitable momentum, supported by a robust and diversified order book. We are observing strong traction in high-growth sectors such as data centers and overall digital infrastructure across our operational markets, and we are strategically scaling to leverage these opportunities. With effective execution, deep client partnerships, and a solid pipeline, we remain confident in achieving our FY26 objectives.”

Deepak Bansal, Chief Financial Officer of Black Box, added: “We achieved revenue growth in Q2 on the back of a solid order backlog, with EBITDA margins at 9%. Our financial performance reflects the advantages of operational discipline and the impact of our ongoing transformation initiatives. We are committed to growing the business through prudent capital deployment.”