Black Box Limited (BSE: 500463/NSE: BBOX), a global digital infrastructure integrator, announced its financial results for the third quarter and nine months ended December 31, 2025, reporting steady revenue growth and a major expansion into the Latin American market. The company, which provides network integration and cybersecurity solutions across six continents, continues to see strong momentum in its order book despite short-term supply chain challenges.
Business Model
- Financial Structure: The company has achieved an asset-light business model with low leverage, which management notes provides the flexibility to support both organic and inorganic growth.
- Operational Efficiency: Despite higher employee expenses, the company achieved better fixed-cost absorption and maintained steady EBITDA margins through a more balanced business mix.
Financial & Operational Performance
- For Q3 FY26, Black Box reported revenue from operations of ₹1,660 crore, representing an 11% year-on-year (YoY) increase and a 5% growth over the previous quarter.
- EBITDA stood at ₹147 crore, a 10% YoY rise, with margins remaining steady at 8.9%.
- Profit After Tax (PAT) declined by 11% to ₹50 crore, primarily due to a one-time exceptional provision of ₹6 crore related to the New Labour Code.
- For the nine-month (9M) period, revenue reached ₹4,631 crore, supported by higher order execution compared to the previous year.
- The company maintained a strong order backlog of $601 million as of December 2025, a $100 million increase over nine months, driven by conversions in the data center vertical.
Strategic Acquisition & Geographic Presence
- In a significant milestone, Black Box executed a definitive agreement to acquire 100% equity in Brazil-based 2S Inovações Tecnológicas, a leading Cisco Gold Partner. The acquisition is expected to close by the end of FY26 and is projected to add approximately ₹500 crore in revenue in FY27.
- Black Box currently operates in 35+ countries, with North America accounting for 67% of its revenue.
- The company services over 120 Fortune 500 clients and has established a “connect-anything, optimize-everything” model across technology, financial services, and healthcare sectors.
Client Retention & Scale
- Long-Term Relationships: A major milestone in client stability is that the tenure of the company’s top 10 clients continues to remain above 20 years.
- Massive Service Footprint: The company now services 5,000+ active client locations on-site and manages over 1,000 global customers.
- Technical Expertise: Black Box has amassed 3,000+ technical certifications, supported by a global workforce of over 3,600 representatives.
Significant Notable Order Wins
- The company secured several high-value contracts across diverse sectors and geographies during the period, including:
- Hyperscale Data Centers: Secured “very large” data center orders, specifically from hyperscalers.
- U.S. Public Sector: Won multiple orders from the United States public sector.
- Global Financial Services: Continued execution of a large-scale order for a leading U.S.-based financial services giant, alongside a new large order from a bank in Australia.
- Digital Infrastructure: Landed a major order from an Indian internet giant.
Management Commentary
Mr. Sanjeev Verma, Whole-time Director, stated that the company is on track to reach $1 billion in order bookings for FY26, citing strong revenue visibility for the coming year. Mr. Deepak Kumar Bansal, Global CFO, noted that while the New Labour Code impacted current profits, the “underlying profitability trajectory remains intact”.
Outlook & Key Takeaway
The company revised its FY26 revenue guidance to ₹6,325–₹6,375 crore, slightly down from earlier estimates due to supply chain delays in infrastructure projects like fiber and cabling. The key takeaway for investors is the company’s successful transition into a high-value services provider, where its growing backlog and strategic Latin American entry position it for accelerated earnings growth in FY27.