SYNOPSIS: One of the global leaders in digital infrastructure solutions reported revenue growth but weaker profitability in Q3 FY26, alongside a cut in FY26 revenue and PAT guidance, reflecting margin pressures, one-time impacts and execution challenges despite a healthy order pipeline.
Shares of one of the global leaders in digital infrastructure solutions, delivering network and system integration, managed services, and technology products, tumbled nearly 6 percent on Thursday, after reporting mixed Q3 FY26 results and revising its FY26 revenue and PAT guidance downward.
With a market cap of Rs. 9,463 crores, shares of Black Box Limited were trading in the red at Rs. 555.5 on BSE, down by around 5 percent, compared to its previous closing price of Rs. 582.8. The stock has delivered positive returns of around 12 percent in the last one year, and has gained by over 6 percent in one month.
Financial Performance & Revenue Mix Q3 FY26
Black Box Limited announced the financial results for the third quarter of FY26 on Wednesday after market hours, as per the latest regulatory filings with the stock exchanges.
For Q3 FY26, the company posted a consolidated revenue from operations of Rs. 1,660 crores, reflecting a sequential growth of around 5 percent QoQ compared to Rs. 1,584.6 crores in Q2 FY26. Likewise, on a year-on-year basis, revenue increased by around 11 percent from Rs. 1,502 crores recorded in Q3 FY25. The growth was primarily driven by higher order execution during 9M FY26 versus 9M FY25.
Meanwhile, the net profit stood at Rs. 49.7 crore, indicating a decline of about 11 percent QoQ from Rs. 55.65 crores in Q2 FY26, while on a year-on-year basis, the profit was down by more than 11 percent from Rs. 56 crores reported in Q3 FY25. Profitability was impacted by a one-time exceptional charge of Rs. 6 crore arising from changes in employee benefit provisions linked to the implementation of the New Labour Code.
EBITDA for the quarter came in at Rs. 147 crore, marking a growth of 3 percent QoQ and 10 percent YoY. EBITDA margins remained steady at 8.9 percent, supported by improved fixed-cost absorption and a balanced revenue mix. Management indicated that ongoing operational efficiency and cost optimisation initiatives could provide further scope for incremental margin expansion in the coming quarters.
Segment-wise, the System Integration segment was the largest contributor during December 2025, generating Rs. 1,396.7 crore and accounting for around 84 percent of total revenue, reflecting a growth of about 10 percent compared to Rs. 1,266.6 crore in December 2024.
Technology Product Solutions contributed Rs. 226.5 crore, forming nearly 14 percent of overall revenue, up around 15 percent YoY from Rs. 197.4 crore in the corresponding quarter last year. Meanwhile, the Others segment added Rs. 36.33 crore, representing about 2 percent of total revenue, marginally lower than Rs. 37.7 crore reported in December 2024.
Order Book & Strategic Expansion
During 9M FY26, Black Box secured orders worth $626 million (~Rs. 5,466 crore) and remains on track to achieve its FY26 order booking target of $1 billion (around Rs. 9,000 crore), supported by a strong pipeline, particularly in the data centre vertical.
As of 31st December 2025, the order backlog stood at $601 million (Rs. 5,402 crore), reflecting a growth of nearly $100 million during the current fiscal year. The company expects the backlog to exceed $800 million by March 31, 2026, surpassing its earlier estimate of $700 million (Rs. 6,300 crore), driven by continued traction in the data centre segment.
In line with its global expansion strategy, Black Box has signed definitive agreements to acquire 100 percent equity of 2S Inovações Tecnológicas S.A., a Brazil-based technology company headquartered in São Paulo. The acquisition, valued at around Rs. 275 crore payable at closing, is expected to be completed by the end of March 2026. The transaction aligns with the company’s long-term strategic objective of scaling its technology capabilities and achieving annual revenues of $2 billion by 2030.
Management Guidance and More
For FY26, the company has revised its guidance across key financial metrics. Revenue guidance for FY26 has been revised to Rs. 6,325-6,375 crore, down from the earlier range of Rs. 6,750-7,000 crore. EBITDA is now expected to be in the range of Rs. 555-575 crore versus the previous guidance of Rs. 605-645 crore, while EBITDA margins are projected at 8.8-9 percent, broadly in line with the earlier band of 9.0-9.2 percent. PAT guidance has been revised to Rs. 220-230 crore from the earlier estimate of Rs. 265-285 crore.
The moderation in revenue expectations is attributed to delays in certain supply chains, particularly in infrastructure-related projects like fiber, cabling, and accessories. However, these delays have contributed to a higher order backlog, which the company expects to execute in subsequent quarters as customer-level supply chain constraints ease.
Overall, the revised outlook implies an estimated year-on-year EBITDA growth of 5-8 percent and PAT growth of 7-12 percent for FY26.
Black Box Limited is a global information and communications technology (ICT) solutions provider and integrator, engaged in delivering technology-based solutions across global markets and verticals, layered with a spectrum of applications and services. The company is the leader in Enterprise Communications in India with a global footprint in locations spanning India, the Middle East and Africa, North America, Australia, New Zealand, Singapore and Europe.
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