Black Box Limited announced its financial results for the quarter ended December 31, 2025, delivering steady top-line growth supported by strong project execution across major markets. The company also unveiled a strategic acquisition in Brazil aimed at accelerating its international expansion plans.

Q3 FY26 Financial Performance

For the December quarter, revenue stood at ₹1,660 crore, marking an 11% increase year-on-year and a 5% rise sequentially. The growth was driven by consistent performance across key geographies and improved execution momentum.

EBITDA for the quarter came in at ₹147 crore, reflecting a 10% annual increase and a 3% quarter-on-quarter improvement. Operating margins remained stable at 8.9%, supported by effective cost management and a diversified business mix.

Profit After Tax (PAT) was reported at ₹50 crore, compared to ₹56 crore in both the year-ago period and the previous quarter. The decline was primarily due to a one-time provision of ₹6 crore related to employee benefit adjustments under the New Labour Code.

For the nine months ended December 2025, revenue reached ₹4,631 crore, while PAT improved to ₹153 crore, indicating overall progress despite the temporary impact on quarterly profitability.

Order Book and Business Developments

During the first nine months of FY26, Black Box secured new orders worth approximately $626 million (around ₹5,466 crore). The company is targeting $1 billion in total order inflows for the full financial year.

As of December 2025, the order backlog stood at $601 million (₹5,402 crore) and is projected to cross $800 million by the end of FY26. Growth momentum has been particularly strong in the datacentre segment.

Notable contract wins during the quarter included:

• Datacentre projects from global hyperscale operators
• Multiple contracts from US public sector entities
• Large-scale mandates from an Indian internet company and a leading Australian bank

Expansion into Brazil

In line with its long-term growth strategy, Black Box has entered into a definitive agreement to acquire a 100% stake in Brazil-based 2S Inovações Tecnológicas. The transaction is expected to close by March 2026.

The acquisition aligns with the company’s objective of reaching $2 billion in annual revenue by 2030. It strengthens Black Box’s footprint in Latin America, a region known for its growing digital infrastructure demand and strong technology talent pool.

The deal is anticipated to contribute approximately ₹500 crore in revenue in FY27. Management aims to complete integration and achieve operational synergies within 90 days of closing.

Management Outlook

The company highlighted improving execution capabilities, a healthy order pipeline, and an enhanced business mix as key growth drivers. While quarterly PAT was impacted by a one-time provision, management expects profitability to improve as margins stabilise and higher-value opportunities increase.

The Brazil acquisition is positioned as a strategic move to expand the company’s networking, cloud, and digital infrastructure capabilities, reinforcing its long-term value creation strategy.

About Black Box

Black Box is a global provider of digital infrastructure and networking solutions. The company offers network integration, managed services, and technology solutions to enterprises across the United States, Europe, India, Asia-Pacific, the Middle East, and Latin America. Its client base spans sectors including financial services, healthcare, retail, technology, manufacturing, and public services.

Summary

Black Box delivered steady Q3 FY26 performance with revenue rising 11% year-on-year and stable operating margins. While PAT declined due to a one-time labour code provision, nine-month performance showed overall improvement. The company maintained strong order momentum and announced a strategic acquisition in Brazil, aimed at strengthening its Latin American presence and supporting its long-term $2 billion revenue goal.

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