Can Black Box Achieve Scalable Growth with Data Centre and Networking Demand?
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Synopsis
Black Box Ltd, a technology arm of Essar Group, is on track to double its revenue to USD 2 billion by FY29, fueled by strong demand in data centres and networking. With a robust order book and strategic focus on major global clients, the company aims to capitalize on significant growth opportunities in India's digital infrastructure landscape.
Key Takeaways
- Black Box Ltd targets USD 2 billion in revenue by FY29.
- The company reported net new orders of USD 218 million.
- India's data centre capacity expected to triple by 2028.
- Focus on top 300 global clients for strategic growth.
- Projected 25 percent revenue from data centres by FY29.
Mumbai, June 30 (NationPress) Black Box Ltd, part of the Essar Group, is setting its sights on achieving a remarkable USD 2 billion in revenue by FY29, driven by a robust order pipeline and increasing demand in the data centre and enterprise networking sectors, according to a report by JM Financial Institutional Securities Limited.
The company reported net new orders totaling USD 218 million (1.22x book-to-bill ratio), with its overall order book expanding to USD 504 million, reflecting a 7 percent year-over-year growth.
With a promising pipeline of USD 2.5 billion, the company demonstrates strong growth potential amidst an anticipated increase in global IT spending, projected to reach USD 5.27 trillion in 2024, as highlighted in the report.
Black Box’s targeted sales strategy focuses on its top 300 global clients—including renowned companies like Meta, Intel, Disney, and Bank of America—aiming to enhance its wallet share within these key accounts.
One of the significant drivers of growth is its dedicated data centre segment, which currently accounts for 17.5 percent of revenue, with expectations to rise to 25 percent by FY29, reflecting a compound annual growth rate (CAGR) of 42 percent. This expansion is supported by trends in hyperscaler capital expenditures and the projected 25 percent CAGR growth in India's data centre capacity over the next five years.
India plays a pivotal role in Black Box’s growth strategy, with the goal of doubling revenues in the next three to four years. As investments in digital infrastructure accelerate, the country’s data centre capacity is forecasted to nearly triple, reaching 2.8GW by 2028, driven by surging demand for cloud, AI, and 5G services.
This positions Black Box favorably to seize substantial opportunities in one of the globe's fastest-expanding digital ecosystems.
Supported by its growing order book and scalable growth mechanisms, JM Financial Institutional Securities Limited has issued a Buy rating for Black Box Ltd, with a target price set at Rs 670, indicating a potential upside of 33 percent.
With its leadership hiring completed and experienced teams enhancing deal conversion, Black Box is well-positioned to leverage digital infrastructure megatrends, including cloud adoption, AI, cybersecurity, and 5G rollout, in pursuit of its ambitious growth objectives.
Point of View
I believe Black Box Ltd's aggressive growth strategy reflects the broader trends in digital infrastructure investments. The company's ability to adapt to the evolving IT landscape positions it well for future success, especially in a market as dynamic as India.
NationPress
30/06/2025
Frequently Asked Questions
What is Black Box Ltd's revenue target for FY29?
Black Box Ltd aims to achieve a revenue target of USD 2 billion by FY29.
What sectors are driving Black Box's growth?
The growth of Black Box is primarily driven by the data centre and enterprise networking sectors.
Who are some of Black Box's major clients?
Black Box's major clients include Fortune 500 companies such as Meta, Intel, Disney, and Bank of America.
What is the projected IT spending in 2024?
Global IT spending is projected to reach USD 5.27 trillion in 2024.
How much of Black Box's revenue comes from the data centre segment?
Currently, the data centre segment contributes 17.5 percent of Black Box's revenue.
