Black Box Ltd (NSE: BBOX) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
Sanjeev Verma — Chief Executive Officer
Deepak Bansal — Executive Director and Chief Financial Officer Global
Analysts:
Unidentified Participant
CA Garvit Goyal — Analyst
Jyoti Singh — Analyst
Rohan Nagpal — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q3 and 9 months FY26 earnings conference call of Black Box Limited. This conference call may contain forward looking statements about the company which are based on the beliefs, opinion and expectations of the company as on the date of this call. These statements are not the guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participants line will be in listen only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone.
Please note that this conference is being recorded. I now hand over the call to Mr. Sanjeev Verma, full time Director and CEO of Black Box Limited. Thank you. And over to you sir.
Sanjeev Verma — Chief Executive Officer
Good morning everyone and thank you for joining us. On behalf of Black Box Limited, I extend a warm welcome to our Q3 and nine month FY26 earnings call. I’ll begin by sharing an overview of our business performance after which our CFO Mr. Deepak Bansal will take you through the financial highlights starting with our Q3 performance. We are pleased to report revenues of 1,660 crore for Q3 FY26 representing growth of 11% year on year and 5% quarter on quarter. For nine months FY26 our revenue stood at rupees 4,631 crore reflecting a growth of 5% YoY. The growth was primarily driven by higher order execution during 9 month FY26 compared to the corresponding period last year.
From a forward looking perspective, the business momentum continues to remain encouraging and this confidence is driven by a healthy and expanding order book, improving pipeline visibility which together positions us well for sustained growth in the coming quarters. For nine months FY26, the company booked orders worth $626 million. The company continues to maintain strong order momentum and remains confident of achieving its FY26 order booking guidance of approximately $1 billion, thereby entering FY27 with a strong traction supported by sustained auto wins. The order backlog is now expected to exceed early estimate and reach around $800 million by the end of March 2026 which is approximately $100 million higher than the earlier estimate backlog of $700 million reflecting a growth of 60% year on year compared to the earlier estimated growth of 40% year on year.
This increase reflects new customer demand validation of our investment in go to market talent, providing strong revenue visibility for the upcoming period. The incremental $100 billion addition to FY26 closing order backlog is expected to be driven by two key factors. Approximately 40 to $45 million relates to revenue that was initially expected to be recognized in FY26 but has shifted due to temporary customer level delays and supply chain constraints. As these challenges gradually normalize and execution progresses, the this revenue is expected to flow in FY27. The remaining 55 $60 million is expected to be driven by incremental order built in Q4 supported by improving traction across key verticals and strengthening customer pipeline.
The project order book Witness.
operator
Ladies and gentlemen, the line for the management has gone disconnected. Please stay connected. Meanwhile I connect the line. Available. Ladies and gentlemen, the line for the management has been reconnected. Thank you for your patience. Sanjeev sir, please proceed. Thanks. Sanjit, please.
Sanjeev Verma — Chief Executive Officer
Am I audible?
operator
Yes sir, you’re audible. Please proceed.
Sanjeev Verma — Chief Executive Officer
Okay, Sorry for the disconnection here. The project order book witnessed a robust growth reflecting an upside of $37 million at 195 million in Q3FY26 compared to 158 million dollar in Q2FY26. The performance is driven by the company’s continued focus on securing large high value contracts, particularly in data center segment which remains a key growth driver. With a quarter gone by, we have seen extended project execution timeline due to industry wide shortage of fibers and related accessories. While investments in data center segment have begun to show encouraging traction and order inflow, momentum remains strong. Revenue dilution from these projects has shifted to subsequent periods due to supply chain and infrastructure related constraints.
The data center ecosystem is currently witnessing heightened industry gravity which has resulted in shortages across several critical inputs including optical fibers, cables, GPUs, racks, et cetera, power infrastructure and funding access. This is not only impacting the data center industry but the entire digital infrastructure industry where these materials are used. These constraints have delayed project commencement as well as execution timelines. Such strong demand and hyperactivity in the industry has led to temporary supply chain challenges leading to extended execution timelines. However, this temporary in nature and once the supply chain constraint normalizes, the backlog which is currently extended due to this will be executed and flow into revenues.
Owing to such delays in execution timeline are orders which is supposed to be executed in this quarter has flown to subsequent quarters. Therefore, we have revised revenue guidance from the expected range of INR 6750 to 7000 crores to now INR 6325 to INR 6305 crores. The division revenue reflects EBITDA of INR 555 to 575 crores and a PAT of 220 to 230 crores in FY26. During the quarter the company secured notable order wins including multiple large data center orders. The company also secured multiple orders from US Public sector, further strengthening its presence in institutional infrastructure projects.
Additionally, the company won a significant order from a leading Indian Internet company and secured a large order from a prominent bank in Australia. These orders highlights companies expanding global footprint, deep client trust and growing momentum across priority markets. Overall, the near term revenue realization has been impacted by industry wide supply and execution constraints. A strong order book and deal wins, healthy pipeline and sustained demand environment reinforces our confidence in growth through FY27 and beyond. Further.
operator
Ladies and gentlemen, the line for the management has been disconnected. Please stay connected. Meanwhile we connect the management. Thank you. Sa. It. Sam. Ladies and gentlemen, we have connected the management to the conference call. Thank you for your patience.
Sanjeev Verma — Chief Executive Officer
Hi. Apologies for this. For this again. Further on the strategic front, we are pleased to announce that Black Box has signed a definitive agreement to acquire two S Universis technology cards, a leading Brazilian IT infrastructure and cyber security integrator and a Cisco partner subject to certain consents and approvals. With over 30 years of experience, US serves 650 odd customers across enterprise networking, cloud, cybersecurity and managed services backed by advanced networking and data center and collaborative technology certifications practices scales. Black Box presence in Brazil, largest growing market in Latin America and is expected to add 500 crores of revenues in FY27.
The transaction is expected to close by end of current fiscal year. This aligns with our strategy to grow the business to 2 billion by fiscal 29th. With that, I would now like to hand over the call to our CFO Mr. Deepak Bansal who will take you through the financial performance.
Deepak Bansal — Executive Director and Chief Financial Officer Global
Thank you Sanjeev for the detailed business overview and good morning everyone. I will now take you through our financial performance for quarter three and the first nine months of FY26. Starting with revenue performance. Revenue for quarter three, FY26 stood at INR 1660 crores registering growth of 11% year on year and 5% quarter on quarter. For the first nine months of FY26 total revenue stood at INR 4631 crore which is a growth of 5% year on year. Looking forward, growing order book, enhanced pipeline visibility, strengthened execution momentum and regional expansion are expected to drive sustained growth in the quarters ahead.
Moving to profitability, EBITDA for quarter 3 FY26 stood at INR 147 crore representing growth of 10% year on year and 3% quarter on quarter. EBITDA margins remained stable at 8.9% during the quarter despite higher employee related cost on account of investment in go to market talent. Better fixed cost absorption and a balanced business mix help sustaining the margins for the first nine months of FY20.
operator
Ladies and gentlemen, the line for Deepak sir has been disconnected. Please stay connected. Meanwhile I connected. Sam. Ladies and gentlemen, the line for the management is being reconnected. Deepak sir, please proceed. Thank you.
Deepak Bansal — Executive Director and Chief Financial Officer Global
Yeah. Apologies for this. First the for the first nine months of FY26, EBITDA stood at INR 406 crores reflecting year on year growth of 6% with margins at 8.8%. Looking ahead, we will continue focus on disciplined cost management, pricing discipline and continuously optimizing our product mix with ongoing operational efficiency and cost optimization initiatives. There remains further potential for incremental margin expansion as strategic priorities continue to execute in the quarters ahead. Profit After Tax for Quarter 3 FY26 stood at INR 50 crores while PAT for 9 months stood at 153 crores. PAT during the period was primarily impacted by a one time exceptional charge of approximately INR 6 crore relating to changes in employee benefit provisions arising from the implementation of the new labor code.
Excluding this impact, underlying profitability trends remain stable as revenue growth accelerates. PAT expansion is expected to outpace top line growth driven by margin normalization, improved revenue quality and greater contribution from high value opportunities. As highlighted by Sanjeev earlier, the company continued to witness strong order momentum during Q3 with order bookings of 232 million. The total order backlog stands at 601 million as of December 2025. Based on the current order flow trajectory, we expect to significantly exceed our earlier backlog target of 700 million and cross 800 million by end of March 2026. So supported by this strong momentum, we remain well positioned to deliver our full year FY26 order booking target of $1 billion.
To conclude, strong order wins and expanding backlog, proven execution capabilities, deepening client relationships and a healthy pipeline continue to reinforce our growth outlook as temporary customer level delays normalize and project execution Progresses, the revenue is expected to flow into FY20, strengthening our confidence in delivering an even stronger performance in the coming year. The proposed acquisition of 2S in Brazil represents disciplined and strategically aligned capital allocation that enhances both our growth and profitability profile. We are expecting to add around 500 crores of revenue in FY27 and expect to complete integration and synergy within 90 days of closing.
This acquisition strengthens our long term shareholder value while our balance sheet remains well positioned to support disciplined, organic and inorganic growth. With that, we would now like to open the floor for questions.
Questions and Answers:
operator
Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of CA Garved Goyal from screen alpha. Please proceed.
CA Garvit Goyal
Hi, I’m audible.
operator
Yes, you’re audible. Please proceed.
CA Garvit Goyal
Good morning, sir. First question is on the order book. We are having around 6400cr order book as of today and we are guiding for INR 7200cr order book as on FY26. And this is a huge gap, sir, because a part of this order book which we are having right now will get executed in Q4 also. So what is giving you the confidence of getting these big orders? Because almost one and a half months are already gone and you have not made any order receipt filing as well. So is it like we are adding the order book of newly acquired company in our projection? Hello.
Deepak Bansal
Okay, so I think. I think Sanjeev. Looks like Sanjeev is not audible, but.
Sanjeev Verma
I’m sorry, I think. Okay, I’ll just answer that. So first of all, no, we not taking the order book from you. New acquired company. Point number one.
operator
Second call is now being recorded.
Sanjeev Verma
Am I audible?
CA Garvit Goyal
Can you repeat? Sir, can you repeat? I think I missed that.
Sanjeev Verma
Okay, I’ll just repeat that. I said first answer to the first question is are we taking the order book for a newly acquired business? The answer is no. The second is we report order book backlogs, booking and backlogs only at the end of the quarter. So you have a current backlog. What we can derive from that is we’re expecting a very large order booking in quarter four, which is currently in progress. Order books up until now or ones that will be booked are not reported in General, it will be reported when we close the quarter.
So our confidence was being able to meet our $1 billion order booking is very high. So therefore the quarter, the order booking for quarter four is going to be significant to be able to give us the backlog that we’re expecting now to move from an earlier estimated of 700 million to 800 million. So clearly we are in the fray to win some very large contracts in quarter four.
CA Garvit Goyal
Can you put some more color on that? Like what are those areas and how much maybe we have not booked yet, but how much in first one and a half months? We are at advanced salesforce.
Sanjeev Verma
We are at a very advanced stage. A large part of the order of infrastructure, including a very large data center project from Hyperscaler, including the booking for very large infrastructure airport projects. So fairly large both from a long term annuity perspective and also large projects upward of $350 million. Is the expectation to book to be able to get to what we’re asking from a backlog perspective. And we are well on track.
CA Garvit Goyal
So if these orders are very large orders. So are you seeing any like, is it, is it possible that there can be some delays maybe on account of any procedural delays or are you seeing any kind of difficulties in closing these order books by about 26 end?
Sanjeev Verma
No, we’ll we, as I said, as I repeated earlier, we expect to close the 526 with order booking of 1 billion. So we will be having a robust quarter four to deliver that number and opening backlog.
CA Garvit Goyal
And regarding the new acquisition, while you mentioned about the top line, what are the operating margins of that company, sir? And what are the debt levels?
Sanjeev Verma
Do we have. People to take that?
Deepak Bansal
Yeah, yeah, yeah. So, so the company which we are acquiring In Brazil, which is 2S innovation technologies, that company, we be adding close to around 500 crores of the, of the revenues out of it in FY27. And, and we are expecting, we are expecting to generate EBITDA run rate of around 50 crores post integration and synergies and we are expecting integration and synergies to be done in the 90 days of closing. So what is second part of your question?
CA Garvit Goyal
Current debt levels in the company, sir.
Deepak Bansal
So there is no, there is no debt in the company. We are acquiring company at the, at the, at the zero debt, zero cash levels.
CA Garvit Goyal
And what are the net margins net profit they made on 500 top line.
Deepak Bansal
Roughly around, they make, they make close to around 45 crores right now. But with the synergies and all we are looking to make 50 crores next year on that.
CA Garvit Goyal
No, no, I’m asking about the net profit, sir.
Deepak Bansal
Net profit because, because there is no, because there is no, there is no debt and all those things because they would have made earlier some net profit. But from our perspective, the we look at the EBITDA when we are acquiring the company because we are not acquiring anything else below the EBITDA because there is no, there is no depreciation and the tax is also they have some carry forward losses and all those things. So to start with they will not have any loss. So we have to calculate obviously based on the opening balance sheet when we acquire them fully that what’s going to be the tax carry forward and all those things.
But right now we are acquiring it basis the EBITDA and the acquisition will take obviously 19 will take end of this quarter to get close.
CA Garvit Goyal
Understood. And one last question regarding the delays in the supply chain that you highlighted in the ppt. Can you put some more color on it? Exactly what is the issue? How is it impacting black box? Exactly. And were we not aware of this issue in the last quarter because in last quarter we were very much confident regarding execution and reporting the profitability growth from Q3 onward and then suddenly this happened. So you also mentioned that we will be executing the orders that we are currently built up in in the book the sorry that we are currently having the orders in FY27.
So are you seeing these supply chain issues getting resolved now and do you believe that or do you believe that this will continue for few quarters from here?
Sanjeev Verma
I’ll take that. Okay. So I think yeah, some of the the activities specifically in infrastructure projects, AI led projects. More specifically, Data center has extremely heightened up as we speak. We support some of the Mag 7, the Magnificent 7 customers in the US with large order pipeline already won and in the process of winning it. They already answered. If you are following the recent trends, particularly for connectivity and infrastructure, more specifically for fiber, there has been a tremendous demand for fiber and there is a cue to get that to be able to do that. More recently one of the hyperscalers announced a very large investment, interestingly in a fiber company, close to $6 billion to secure their fiber needs to build data centers.
We support such customers. So some of these things are unpredictable and not really time because the demand has been extremely, extremely high. We expect that we’ve already passed through that. But will this continue? If the demand continues to rise the way it is, there is a constraint specifically for connectivity infrastructure, network infrastructure, more especially fiber and cables, which is Required. We are a services company. We require to be on a site to provide our technical services and deployment if there are materials inside. So there has been a shortage of that. And if you look at the public domain more recently, it is in the domain that there has been all of a sudden humongous surge.
So that’s the reason we expect this to gradually ease out. We’ve already lost a quarter of, As I said, 40, $50 million of backlog should have been burned. But we expect as we get into fiscal 27, a project business is not a quarter on quarter business, but we are turning it into an annuity mode business with our pipeline. So expect with our pipeline and our audibles being strong, we should catch it up over the course of the next fiscal year. And therefore our guidance and our confidence for the next fiscal year, starting with a very good order backlog gives us confidence that we continue to grow organically in a significant manner.
CA Garvit Goyal
So when you say these things are getting normalized, Is it like Q4 will also be getting impacted because of this? Is that understanding correct?
Sanjeev Verma
Q4 already we are debated in the guidance at this time.
CA Garvit Goyal
Right? And what about Q1 next year means? When you say gradually this will result, this will get resolved. What is the correct interpretation of this?
Sanjeev Verma
We’ll be giving a guidance for the full year after the quarter ends. We’ll have a better view when we give our guidance for the next 15 years. As of now, opening up a very strong order book is a positive sign for us to be entering into fiscal 27.
CA Garvit Goyal
I join back the queue, sir. Thank you very much.
operator
Thank you.
Sanjeev Verma
Thank you.
operator
The next question is from the line of Jyoti Singh from arian Capital Markets Ltd. Please proceed.
Jyoti Singh
Yeah, thank you for the opportunity. So just wanted to understand like because of the delay of order, we have revised our guidance. So similarly few of our peers are also facing same kind of issues. So is there a industry issues that is going on or what is the main issue? And when we will be seeing this order will be coming back. And after this we also have revised the margin guidance on a slightly lower side. So when we are seeing those coming back and apart from this we have discussed on the acquisition side. So what is the acquisition multiple that we are seeing on our EV by EV by sales and also like you talked about on the debt side.
So is this deal debt funded or internal accrual funded?
Sanjeev Verma
Okay, so I will take the first part and I’ll give it to Deepak to take the second part of your funding and ebitda. EBITDA for the acquisition part. So I think that in general, as I said, there has been a positive sign with respect to hyperactivity for projects which are AI led data center infrastructure, also AI LED infrastructure in other large manufacturing plants, or airport infrastructure, which is where Black box focuses on. We are a digital infrastructure company. We believe this is the era for that. And I think the anticipated hyperactivity has been more than what we had thought.
So there has been a lag pertaining to supplying those materials or products required to build the infrastructure. And this is a trend across the industry, specifically in North America, because most of the activity for that is currently happening and actually happening in North America. Other markets, of course, are picking up and announcing projects, but they’re still in the conceptual stage. Our current focus was first to build our order book pipeline. Ability to win large contracts, ability to build the relationship. And I think we have put up a dedicated theme over the last one year to do that and that result is showing in our order book.
We expect as we move forward that we should be able to burn and melt this order book in a significant manner, providing us growth as we go forward. So this is an industry wide phenomenon of hyperactivity. We are first capturing our space in that, getting more momentum, more sites, more complex. These are very complex large projects. So our right to win has improved. Therefore we are winning. We focus on execution at this time and we should be able to navigate that with our customers as we move forward in the quarters ahead.
Deepak Bansal
And on the acquisition side, I think you asked about that, what is the value we are paying and all those things. So we will be paying close to around 275 crores at closing. And this is subject to some working capital adjustments. And then there is additional deferred payments, including earnouts linked to the performance, which will pay over the next two years. So roughly, let’s say we will be making around 50 crores of the EBITDA from this. So from that perspective, we will be paying at closing, close to around five, five and a half times on the at closing and then on the earnouts and the performance and all those things at the peak level.
If everything, let’s say, goes well and all the earnouts and everything gets accrued, including all the deferred payments, then we will be paying another 100 crores for that. But that is subject to obviously the performance and that will be payable in the next two years timeline, not at the closing. And then this acquisition of 275 crores, what we have to pay, we will be funding it through internal accruals, mix of internal accruals and debt. And we have already told earlier also that we believe in putting our capital prudently. Our roe and roce. We want to be 25 to 30% type of range.
So we don’t want to put capital where we don’t generate those type of roe. And that is why the internal accruals and the debt mix will be accordingly we will use it prudently to pay this 275 crores.
Jyoti Singh
Okay. Thank you so much, sir. And so just wanted to understand. This time our trade receivable has increased 674 crore. So what kind of DSO we are seeing going forward and currently compared to FY25.
Deepak Bansal
So you are saying. You are saying September financials. That’s what you are looking at?
Jyoti Singh
Yes. Yes.
Deepak Bansal
So you are saying on September the receivables are at 674 crores. Because, see, because. Because what has also happened is that between the March quarter and the September quarter we had the growth and you know we have some of the invoicing, the skewness which happens in our business in the last month of the quarter which has happened. Which has happened in the month of September because of. Because of the. Some of the orders execution happened in terms in. And the invoicing happen depending on the OEM supplies and all those things. And because of that this thing has come.
But all these receivables are now come into the same level as soon as. Because we realize our DSO normal DSO is close to around 55 to 60 days. That’s our DSO. So, so that will. That will come to the normal level when we look at let’s say now or. Or at any other period.
Jyoti Singh
Okay, sure. Thank you so much.
operator
Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. IDP participants who wish to ask a question may press star and one now. Thank you. The next question is from the line of Vivek, an individual investor. Please proceed.
Unidentified Participant
Hi Sanjeev. Thank you for the opportunity. Sanjeev. We constantly missed on our top line guidance. And even in this quarter we’ve only bought order book to the extent of about $230 million. So what gives us the confidence that we’ll hit a $350 million run rate and either we’re not seeing things clearly on the ground or not or we are not being candid in our communication with the street. I’m just confused as to which one. Is which one of it is it. And my second question on your long term guidance of $2 billion. That’s a tall ask. Even if I consider FY30, which you’ve moved from FY29 to FY30 in 16 quarters, you’ll have to triple your revenue run rate from about 1700 crores right now to four and a half thousand crores. I mean I can’t square the math. Can you just help me with that?
Sanjeev Verma
Okay, so I think the first thing thanks for the question is I think we had guided a booking of a billion dollar for the year and we are holding on to that. That puts us in quarter four for a significant quarter. So clearly we are halfway through the quarter and another half to go. So we are the fact that we are saying we’ll book a billion dollars. We are orders in the bag significantly projects one specifically for data center, $700 million and more to come. And these order books take time. So gradually if you see for data center infrastructure we had only a.
We are revamping the team. We brought in the new leader, Sean McGuire and entire team and progressively each quarter we have been moving up large projects which runs several hundred million for hyperscalers. And Max 7 are very complex and there are only three players. And we are at more sites than before and more companies than before. Earlier as you know we had. We can never have that. So those are in the bag at this time. The way the order book happens is from a letter of intent to low level design to limited offers in the proceed to finally a contract.
Because these are open projects, green field, massive being spent, billions of dollars. So first we are identified, allocated, then you engage, then contracted. So that’s how it happens. So it takes a little bit of a time there. So I think we are almost as before, we are certain for $1 billion. Now unfortunately there was a situation where they burned a little bit more, 40, 50, $60 million more. That didn’t happen flexibly in infrastructure projects and data center that is back ended. And therefore the opening backlog is going to increase. And fundamentally, as I told earlier on the call, if you look around and in the public domain one of the largest cybersecurity actually invested in a fiber company to get the fibers on demand because they can’t get enough.
We do this fiber project to connect a large scale data center. So we are at the other end waiting to be able for the owner or a customer to supply the material. Because we don’t supply the material, we do the design implementation. So we are confident to your question of Meeting a billion dollar goal, an opening backlog which was supposed to be closer to 700 then we would have possibly hit our goal for revenues slipped by 50, $60 million. And that’s what I quoted earlier. So now from a perspective of 2 billion, we have a very clear path of going there.
One of course from an organic perspective. We expect from if your backlog is going to open up several hundred million dollars more getting into fiscal 27, we should be able to drive a double digit growth with double digit 10 to 15% surely over the next year or so. Because the backlog is going up significantly and we take half of that as backlog to burn. That gives us anywhere 10, 15% growth from organic perspective. And we expect this momentum we just started in the development infrastructure projects and other large scale projects. We will continue to add significant large value projects as we move forward into the next year.
That’s an organic side. So therefore around a 3,400 million dollars you see an average of spend 10% growth any which way for the next seven years time. And that’s what we focus on large projects. It’s complex, very few players. We also expect this to flip our investments. We are looking at projects now in Europe as well at the world of winning. So those will inflate. So we expect order book that we open up at 800 booking a billion now to book much more rating in 27 and beyond. That’s the organic side. And then again if you look at that, that should take us to close to 1.2 $1.3 billion.
And we’ve stated we have an inorganic theme. We just started with that with a small acquisition of 500 crores as you heard today, that will drive that the pipeline in a systemic, systemic manner deeper called out being prudent because we don’t want to be kind of emotional about economics and lose the ROE and the roce. We’ll focus on that which it takes time but we have a significant pipeline as well on that to drive that momentum because we believe at scale our EBITDA conversion is going to improve significantly. So it will start to add up into our pat as we go in 27, 28 and beyond.
So we have a team focus on that as well. So we just had one of them announced and we’ll continue to focus on that. So between organic 12% 15% through a very strong pipeline order book infrastructure structure being done, Americas possibly getting into UK and Europe. Now we just put up a leader in Europe which has renounced India and apac. We just announced the Leader Samir Bathraik on the public domain who joined us. I think we have clear path from organic perspective in organic also we will drive reasonably through our prudent capital deployment. We expect as we move forward we will have.
We will not increase our leverage the more than we need to do, right? So as free cash will start to pump into 2728 so it will be accretive for us. We should be able to drive significant momentum in acquisition as well. A combination of both organic through our pipeline, large infrastructure project wins and inorganic that we are also driving now. We believe we have a clear path to move forward towards our aspirational goal of $2 billion.
Unidentified Participant
Sanjeev, just to labor on that point again we guided for about 15% growth starting this year. And even now on just in your commentary you mentioned a 10 to 15% growth. I mean if you’ve missed orders this year, ideally next year we should be going much higher, right? I mean if we are to just. If that order has just been deferred to the next year, shouldn’t we be growing about 20% next year? And on the back of the acquisition your overall revenue ideally should be in the range of 20 to 20%. I mean just 10 to 12% I don’t think gets us to $1.2 billion.
We are at a 700 million dollar run rate. I mean if we end the year at 6300 crores, that’s a 700 million dollar for us to move from 700 to 1.2 in four years time. That will take a lot higher than just a 10 to 15% cadre. So at some point the math has to catch up. So your growth rates can’t just stagnate at 10 to 12% while previously you’ve not delivered any revenue growth.
Sanjeev Verma
Yes, I think you’re right. I think so. Whether it was a little more than 15% or 16%, I think the first fundamental goal for us has been to have enough backlog to be able to burn that. I agree. I think we possibly will do more this time. But I think what I’m alluding to is as clear path of driving organics through large scale projects in order books. So if you look at the order book growth of 60% compared to opening balance of last year, we’re taking a currently at the back of the environment that will burn at whatever rate we’re expecting.
Could we burn more of the 3,400 million dollars that is lying extra in our order book than when we opened up last year? It is a possibility. Right but considering we just quoted about some constraints and missed 40, $50 million worth of revenues, we took that point. But will that improve? And a backlog of 3,400 million dollars would drive 15, 20% growth if not more. I agree, but we’re taking a view, we’ll guide it at the beginning of the quarter, sorry, beginning of fiscal year and that’s what I said in the earlier caller. We’ll guide as you get a view of how we’re looking closing the year first booking a billion opening of $600 million and then guide as to what we believe we can burn.
And the possibility are that we could possibly be doing organic more than 15 from that perspective.
Unidentified Participant
And just for us to get to. $2 billion, we can’t just rely on the data center. But that is a project business, it’s a one time business. And then we have to replenish the order good completely. What is happening on the managed services and the maintenance contract side is that pipe going for us to get to 2 billion. We can’t just rely because then that will require us to replenish a couple of hundred million dollars every year which, which might get tough. And on the data center part we’ve been calling out massive activity, but we barely scratch the surface. I mean these companies have spent couple of trillion dollars already and we’re still not, we’ve barely acquired the orders and we’re still not executed.
So I mean, I’m just trying to piece the, I mean, can you just give me a broad macro view on how the sales teams are performing not just on the data center side, but also on the other side. This order put in of about $230 million every quarter will not lead us to $2 billion. We’ll have to get to possibly a 3501-003502-00400 million dollar run rate every quarter. Can you just speak to that please?
Sanjeev Verma
Yeah, so first of all, the 2 billion, I think I said $700 million is supposed to be inorganic. So we look at 1.3 billion. Right. I think from a current backlog perspective we are covered well past about 60 or percent as we start the quarter to start the year. That’s what we are. To answer your earlier question, I think although we are seeing more bump coming in in the project side which gives us some annuity business as well. So it’s not only a project, we’re doing annuity for hyperscaler in data centers in Europe for several years running into several million dollars after we did project for 20, $30 million.
So it also gives us annuity not high 10 to 15%. If you do $100 million project you do get 10, $15 million of annuity at a much better margin going forward. Having said that, we still have good over 50, 60% of our business. To your point, as you rightly said, from our non data center business which includes our backend bank business, we put very large business in our airports, multiyear managed services, airports like Miami which runs into tens of millions of dollars or Newark airport. So we are expecting large projects and NVTI managed services are doing for a very large Healthcare to $20 million worth of managed services.
We have multi like that. So the answer is yes, we have both. So although if you look at that table, the project bumps up more in a certain quarter, but it’s not really a quarter. On quarter business you can get a very large order which will burn over a period of time. So we are also focused, a large part of the team is enterprise focused on non data center similar business connectivity, networking, workplace modernization and so on so forth. Predictable large scale. We are expecting large scale refresh in wireless infrastructure, network infrastructure. So that will continue to happen run by their Venkat that runs it through a large team data center.
Of course we require a smaller team. We don’t require 50 people, 100 people from a sales standpoint there are only 5 hyperscalers and maybe 10 multi tenant guys. So we have a smaller team but high performance team that was put in place in fiscal 26 as I told earlier with Sean McGuire leading that 30 year experience with that perspective. So we’re not leaving away and only focusing on data center. We’re just saying data center is hyperactive. There are very few large scale complex projects institution. It’s time taking. But a pipeline and order book of large nature will burn over a period of time for next two, three, four years time when you do a project of $200 billion, it takes two and a half years to burn.
Of course we expect it to win another 200 and 400. But the roadmap for that, at least for the foreseeable future is there, right? And I think we are focused on working on that moving to Europe. We have not even come to India at this time and possibly at some point we will look at what we want to participate in some of these things in there when India actually starts to build or deliver those projects currently to that conceptual MOU kind of a stage. So both the tracks non data center and data center where we are wanting to turn a data center Pipeline into a project, into a more annuity business with large pipeline, some portion of that will turn into managed services for what we call day two operations.
So we are looking at both and we are driving both from that perspective.
Unidentified Participant
Ranjeev, just one last question. Since we brought the new head of GSI into the company, I mean the order booking for the last three quarters has basically been around the 200, 230 million dollar range. I appreciate that once you’ve set the team in place and with the new go to market strategy, I mean at some point the sales team has to fire. I mean so what ideally next year onwards what should be the quarterly order booking and will that be lumpy nature should be moving. Should we be moving to a different orbit from about a 257 million dollar 100 to a much higher because that, that, I mean that match doesn’t change that we can’t be at a 250, 230 million $100 and expect to hit.
Sanjeev Verma
A $1.2 billion target in the next three to four years. No, I agree. I think, yeah, so I think you’re right. So we, we will see normal growth in the enterprise sector which is where business and the first one which is more 15 to 20% we saw hyper growth. So if you booked we had $100 million booking, a $200 million booking in data center the previous year, we’re expecting 400 or 600 which is multi time jump because it will not go the same way. A combination of both. Our goal next year moving into should be upward of 300, 350 every quarter going forward.
We are currently at 230, 250 quarter. Four of course will be much larger and will report when we get there. And we have an ability now to be able to see that funnel culminating. Having said that, the enterprise kind of business supporting our bank. First of all, first of all you have to keep those customers going and then win for new customers. You see spec 12, 15, 20 depending which quarter we land up. But I think we’re expecting a significant bump quarter and quarter going forward. Similar types, several hundred million dollars in the data center infrastructure.
Basically it filled up half the business, 40% of the business. But that didn’t exist earlier. So we were doing 230, 180, 200, 250, whatever the number was. I mean we arrived expecting it to turn.
Unidentified Participant
I appreciate you just want have you. Written more than we can chew as. Far as a 2 billion dollar target is concerned? I mean I appreciate that even on the inorganic part with a 50 million dollar acquisition. We still got to cover.
operator
Sorry to interrupt, sir. Vivek. Sir, can we request.
Unidentified Participant
I will join that. No worries. Thank you.
operator
Thank you. Before we take the next participant, anyone who wishes to ask a question may press star and one on their touchstone telephone. I repeat, to ask a question please press star and one. Now the next question is from the line of Disha from Sapphire Capital. Please proceed.
Unidentified Participant
Yeah, hello, so am I audible?
operator
Yes.
Unidentified Participant
Yes. Okay, so firstly on this current audible that we have, what sort of execution timeline do we see here?
Sanjeev Verma
Can you repeat the question please? I think voice is cracked.
Unidentified Participant
The execution timeline for the order book.
Sanjeev Verma
Okay, so I think we have several kind of order books. The order books includes and with the order books that are recognized relatively over a period of time. If you look at investor presentation, you will see that projects backlogs run between nine months to 24 months. For enterprise projects, they usually close within a year. For large scale infrastructure projects for data centers, depending on the size that might last several years, maybe two years or more on average. If you look at everything, we look at an average of one year from last three months, six months, nine months and two years time.
Large hyperscaler projects run over several years. Enterprise projects usually run between three months to six months time. And we think the managed services are relatively recognized every month, every quarter. That’s what accounting.
Unidentified Participant
Yeah. So just following up on what the previous part is. When there are if you targeting a 2 billion dollar by 2030 and if you close this year by around say the upper end of our guidance around 600375 crores, that would mean that we need a casual of around 25 to 50%. But we’re only just targeting, I think you mentioned 12 to 15 growth. So what’s, what is the sort of glide path that you see?
Sanjeev Verma
No, so we’re targeting a CAGR of 30, 35% including or the inorganic goal of $2 billion. Right. So that’s what we’re looking at. We’re looking at 700, 758 and wherever the number lies. With respect to our. We started that process as we called in a smaller way, but we have larger ambitions on that as well. Having said that, a larger part of the company’s focus is organic growth, which includes our enterprise business and we can also include our data center infrastructure business. And we feel confident first thing for us to be able to close the year with respect to what we have guided for order booking open up a continue to push and drive that organic growth.
As we paradoxically look for Inorganic opportunities. A combination of those CAGR of 30% or more of that could lead us to where we want to go to $2 billion is what our goal is.
Unidentified Participant
Yeah, so yeah, a CAGR of 30% will lead to that. So just for the acquisition that we’ve done, what sort of growth do we see for this company?
Sanjeev Verma
Take that.
Deepak Bansal
Yeah, yeah, yeah. So, so, so this company has grown at a CAGR of close to around 20% from last year to this year also in 2025 tentative numbers. So we are expecting at least 12 to 15% growth because. Because Brazil is a very high growth market and we are expecting that FY27 we should add 500 and then from FY28 onward we should grow at least at minimum, bare minimum, at 20% levels for this company.
Unidentified Participant
Okay, okay. And just what is this rationale for this acquisition and what sort of synergies do we see here?
Sanjeev Verma
I’ll take that. So. Our footprint currently is fairly small to million dollar. The company is a very large enterprise focused network integrator, large Cisco partner, very multi clients adjacent to what we do. We largely did connectivity and infrastructure so we can process. We expect sales momentum in that region to improve collectively as we move forward. The second by cross selling the second. Of course the company was only present in Latam, largely Brazil, but has marquee customer customers, good relationship with no ability to serve them overseas and they were serving it through some partners and otherwise. So with black box presence in America or Europe, otherwise we expect some flow of business coming to other markets as well at the back of the of this acquisition.
Third, the seat on the table with us with respect to networking conversation, most specifically from a fiscal standpoint is much better to have the relationship. It could be accretive for our margin going forward in combination. I think the rational was to get to scale because if you are not having scale, if you are doing 12, $15 million in the market, we don’t have a seat on the table to large customers of stock. So we get a seat on the table. We also get an ability to cross leverage each other in that geography and also get a leverage which governs the 2 ability to serve some of 2 SS customers in other geographies that they were not serving.
So we see a multitude of synergies as we move forward with integration over 90 days. The first thing is to get into our run rate and then look at combined strength of one plus one to see how we can make it more than two.
Unidentified Participant
Okay, okay. And just last question on the margins, I think this Time. So obviously because the revenue deferred in the supply chain issues reduce the guidance. But going ahead with this acquisition as well, how do we see the margin trajectory?
Sanjeev Verma
We continue to hold on to our margin guidance. Our goal is to move to 10%. We are at 9.99%. So I think this acquisition or otherwise as well at scale we believe will be margin accretive both from a EBITDA perspective and of course much better from a. We expect our PAT CAGR to be significantly higher as we move towards growth of revenue EBITDA CAGR to be significantly higher. EBITDA to PAT conversion would significantly improve at scale because we don’t expect that to be linear therefore accretive from that perspective as we get into 27, 28 and beyond.
Unidentified Participant
So 10% sort of EBITDA margins can we target for.
Sanjeev Verma
That’s what we’re targeting. Yes.
Unidentified Participant
Thank you. That’s it from my side. Thank you.
operator
Thank you. The next question is from the line of Rohan Nagpal from Helios Capital Management. Please proceed.
Rohan Nagpal
Thanks. My question, so first question I had is this is the seventh quarter. In. Which we’ve been recording exceptional expenses on provision for rooms and foreclosure leases. How much longer do we expect to record these exceptional items?
Deepak Bansal
So you know Rohan, we are, we are let’s say because we are operating multiple geographies we thought that technically the FY26 should be the last one. But right now I think from a visibility perspective I think that at least another 2/4 in FY27 we should have these exceptional items but the exceptional expenses should little bit go down because we continue to pivot and let’s say identify the opportunities to severe the people wherever we think that it is not required or whatever. And that’s what it comes into it. And with respect to the rent and all those things, it is more like.
So let’s say, let’s say what we are also doing now is that we are not recognizing the overall rent restructuring into 1/4 because as per the gap, if I have done a rent restructuring and some consolidation of whatever I need to recognize during the period of the term of the contract as per the lease accounting. So that is why that is where it is. It is coming like that. So. So the patent restructuring is a lower amount as compared to the severance. I am expecting severance amount to come down drastically in going. Going three quarters. But I am expecting that next two or three quarters still the exceptional items will be there.
Rohan Nagpal
Okay, understood. Thanks for that. And then my second question is on demand. So I mean we already have, we already have a longstanding relationship with one of the large hyperscalers that is committed to a significant amount of capital expenditure this year. So we have, we have a path to benefiting from some of that capex but from some of the other hyperscalers that have announced even larger amounts of capex. What exactly how exactly does the sales cycle work in this situation? If someone’s announced $200 billion of CapEx this year, is there any way in which we have an opportunity to participate or service some of that spend? Or is it, or will it take along a significant part of this of fiscal 27 for US and then we have to effectively we get to service some of that spend in the next year if the business development efforts are successful.
Just want to get a sense of the dynamics at play over here.
Deepak Bansal
Oh, I think Sanjeev is dropped. So I can take this. So basically, you know, like we are dealing with let’s say one large customer on a hyperscaler but then we have the other hyperscalers like we are speaking with two more large hyperscalers who have announced the large project and also, also one of the joint venture between the hyperscaler and the large, let’s say the GPT company, we are dealing with them. And typically sales cycle, typically on this whole data center thing is more like I will say three to nine type of period from a sales cycle.
And, and, and the decision making is happening most of the, most of the hyperscalers it is between hyperscalers and also the, and also the general contractors who are getting involved. The decision making happens between them. So there are like lot of round of interviews and then there are safety practices and then there is a prior experience and all those things. And most of the hyperscalers it is not on the, it is more like a technical discussion in all these rounds or the financial discussion is not let’s say, let’s say not much. We have to obviously give the financial models and all those things and in terms of margin and all, but it is more like a discussion type of thing and then accordingly they allocate so that, so, so let’s say the selection or let’s say the allotment of the project is more happening on the technical parameter.
The financial parameters for everybody remains almost in the same ballpark ballpark numbers.
Rohan Nagpal
So on the significant surge in CapEx X of the hyperscaler that’s already a customer we would not have as much. We won’t be able to service or participate in as Much of that this year it would primarily be a 2027 story. Is that a fair understanding?
Sanjeev Verma
No, I believe I’ll take that so I think so. We have to be prudent as to where we want to deploy our capital and our resources. So we are focused on six specific markets in America where we focus with this sector US has 50 states. Data center is getting built in 50 states. This is a localized work. See obviously you cannot have hundreds of resources parked in every places. It’s just not physically possible possible. So therefore you choose what you can deliver best. Because if you do need a very complex large scale of a mighty scale projects, if you don’t do well, the chances of getting a repeat becomes low.
You can also have a cost overrun. You can have, you can have delays. So you choose your battle accordingly. We have over the last several quarters reorganized ourselves as to where we will focus on. Therefore at those conversations in my meetings, the senior management of this hyperscalers or other multi tenant, we are clear as to where we are and we have the strength. So we do not want to be just spraying and praying. Right. I think that’s one way to do it. Is too much opportunity means nothing because you’ll be bidding for too many things and winning peanuts.
You’d rather be focused on. As Deepak called out, where we are allocated more on technical strength, resources, capability, safety and so on and so forth forth. And the commercial discussion negotiations are fairly, fairly understood fairly well. Now it’s market driven labor rates, your overheads, your margins fairly transparently because it’s not a fixed cost, fixed scope project. The project changes on the fly because it’s a barren land built for 2 gigawatts. Right. So I think it’s a different kind of project. So it is. There’s an entry barrier. Anybody can’t come and bid for this projects. It’s a long lead times and if you come out a winner, you would be here for long term.
So that’s what we’re trying to build.
Rohan Nagpal
Okay, understood. And just last question from my end. So we discussed supply chain bottlenecks. There seems to be a certain amount of social and political resistance to the development of data centers in certain states. Your certain bill looking at restricting the build out. Is that, is that impacting us in any way or even at a business development standpoint at this point?
Sanjeev Verma
No, I believe, I think so. Of course there are certain specific states where there’s more hyperactivity and so on and so forth, but I think, I don’t think we are affected by that. As I told earlier, we have focused around where our winability is higher, focused on our win rates and stuff like that. So that’s why we are not affected by that.
Rohan Nagpal
That’s it from Ayan. Thank you very much.
operator
Thank you. Ladies and gentlemen, due to time constraints, that was the last question for today. I now hand over the conference to management for closing comments. Over to you, sir.
Sanjeev Verma
So thank you everybody for joining the call. I hope we have been able to address all your queries. For any further information, kindly get in touch with Purvesh Parekh, our head of investor relations, our strategy growth advisors, our investor relations advisors. Thank you so much.
operator
Thank you. On behalf of Black Box Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.