Black Box Limited reported strong operational performance for Q3 FY26, with revenue growing 11% YoY and 5% QoQ. The company is on track to meet its $1 billion FY26 order booking target. Management highlighted the proposed acquisition of Brazil-based 2S Inovações Tecnológicas as a strategic milestone set to close by end of FY26, expected to add ₹500 crore in revenue in FY27. Revised guidance shows PAT growth anticipated between 7-12% YoY.
Investor Communication Summary
Black Box Limited submitted its Investor Presentation for the quarter ending December 31, 2025 (Q3 FY26). The presentation details operational milestones and financial highlights, underlining a focus on strategic inorganic growth through an upcoming acquisition and sustained execution momentum.
Q3 & 9M FY26 Financial Highlights
The company demonstrated robust quarterly growth:
- Revenue: Grew 11% YoY and 5% QoQ in Q3 FY26, reaching ₹1,660 crore. For the 9 months (9m FY26), revenue stood at ₹4,422 crore, up 5% YoY.
- EBITDA: Q3 EBITDA was ₹147 crore (8.9% margin), up 10% YoY. 9m FY26 EBITDA was ₹406 crore (8.8% margin), up 6% YoY.
- PAT: Q3 PAT stood at ₹50 crore (3.0% margin), down 11% QoQ primarily due to a one-time exceptional impact of ₹6 crore related to the New Labour Code provisions. 9m FY26 PAT was ₹153 crore, showing a 6% YoY increase.
Order Book Strength and Outlook
The company maintains a strong pipeline visibility:
- Q3 Order Booking: Healthy booking of $232 million.
- The company remains on track to meet its full-year FY26 order booking target of $1 billion.
- Total order backlog as of December 2025 reached $601 million, a growth of $100 million in the first nine months of FY26.
FY26 Revised Guidance
Due to supply chain delays affecting current revenue execution, guidance has been revised:
- Revised Exit Order Backlog: Expected at $800 million+ by end of March 2026, which is higher than the previous estimate of $700 million.
- Revised Revenue Guidance: Lowered to ₹6,325 – ₹6,375 crore.
- Estimated Revised EBITDA Growth: Expected to be 5-8% YoY.
- Estimated Revised PAT Growth: Expected to be 7-12% YoY.
Strategic Acquisition: 2S Inovações Tecnológicas
The company has executed a definitive agreement to acquire 100% equity in Brazil-based 2S Inovações Tecnológicas (2S).
Deal Rationale and Synergies
This acquisition aims to:
- Strengthen the Go-to-Market Strategy by leveraging 2S’s Cisco/cloud expertise with Black Box’s infrastructure/A/V capabilities for unified enterprise solutions.
- Accelerate Regional Expansion, strengthening presence in Brazil and broader LATAM.
- Drive Improved Profitability & Margins through streamlined SG&A functions.
The transaction is expected to close by the end of FY26, with integration and synergies expected within 90 days of closing, anticipating an addition of ₹500 crore in revenue in FY27.
Management Commentary Highlights
Whole-time Director, Mr. Sanjeev Verma, noted that the Q3 performance reflects a focused go-to-market strategy and strong momentum entering FY27. CFO Mr. Deepak Kumar Bansal stated that while PAT was impacted by one-time provisions, the underlying profitability trajectory remains intact, supporting disciplined organic and inorganic growth initiatives.
Business Model & Historical Performance
Black Box remains a global digital infrastructure integrator operating across 6 regions and 35+ countries. The 9m FY26 revenue mix shows Global Solutions Integration contributing 84% of segmental revenue.
- Geographic Revenue Mix (9m FY26): North America leads at 67%, followed by Europe (10%), APAC (10%), India (7%), and Latin America/MEA at 3% each.
- Historically, the company has demonstrated a CAGR in Revenue of 21.5% over FY19-FY25, with EBITDA CAGR at 50% over the same period, reflecting the successful turnaround following the FY19 acquisition.
Source: BSE
