Black Box Ltd posts strong Q1FY26 growth with $176M orders; targets $1B order book and $2B revenue in three years, backed by AI-led services.
Black Box Ltd reports strong Q1FY26 performance with $176M in new orders and strategic partnerships to drive $2B revenue target by FY2029 (Photo: File)
Black Box Ltd promoted by the AGC Networks, a subsidiary of the Fujitsu Group, has transformed itself from a loss-making entity over the last five years into a profitable cash generating business with an extremely strong balance sheet. With the turnaround now complete, the company management expects to post higher revenue and growth in the current financial year on the back of solid traction by winning large key business accounts and multiple high value opportunities in the horizon.
Black Box booked solid orders worth $176 million during the first quarter of FY2026 with almost a majority of them being high value deals. The company won a notable project order from a leading US-based financial services blue-chip company , along with an order from one of the biggest OTT player in the world for their operations in Latin America. It also secured two significant data centre orders in the US during the first quarter from a global hyper scaler and from a large global core location provider. Black Box also received orders for a workplace solution project in the US from a top tier transport authority , another order from a public service authority for a combined connectivity infrastructure and networking segment , and a large networking deal from a respected 200 years old US based research university.
The order book as at the end of the first quarter of FY2026 was USD 518 million and the company is quite optimistic and confident that the order book would reach USD 700 million by the end of the fiscal year 2026. With the company’s experienced leadership and business teams firmly in place across verticals and horizontal solutions and with a voluminous order book, Black Box is optimistically targeting to book orders worth a whopping USD 1 billion during the completion of the financial year 2026. This is due to the demand for AI-led services which is going to be quite strong on the back of new technology infrastructure, backed by solid market positioning and proven capabilities.
The company management is targeting revenue of USD 2 billion over the next three years. Digital infrastructure company Black Box Ltd reported net profit of Rs 47 crores for the first quarter of FY26 registering a 28% growth over the same quarter of the last fiscal. It reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) of Rs 116 crores for the quarter, with EBITDA margins at 8.4 percent, which is higher by 30 basis points over the corresponding period for the last fiscal. Order inflows for the June quarter of FY2026 were a solid Rs 1506 crores taking the total order backlog to Rs 4433 crores. Notably, most of the orders won in Q1FY26 were high value deals demonstrating the success of the ongoing transformation undertaken by Black Box and the company's strategic focus to win large scale projects from large global customers.
It announced a global strategic partnership with Wind River, a global leader in intelligent edge software to deliver next generation edge and cloud solutions to companies in India and the Middle East. Further, Black Box has also entered into a separate agreement with Wind River to manage customer engagements across the globe. These partnerships are expected to deliver around Rs 1350 crores in revenue over the next 5 years positioning Black Box as a pivotal player and benefit industries such as industrial automation, retail, financial services, telecom, manufacturing, etc enhancing both operational efficiency and customer experience.
The Black Box management has given guidance that it expects the company financial results to be much better from the second quarter of the current financial year than the earlier quarters. In spite of US tariff problems, the company management feels that there is going to be a limited impact on the business due to the revenue model being based on ground services plus original equipment products being purchased locally. Hence, the US tariff problem will not impact the company's profit and loss as it is mostly Pass Through from a product side perspective. But the company management expects that there could be delays by their clients on capital spending expenditure, resulting in a macroeconomic type of situation in the US. Fund managers and portfolio brokers are very bullish on the Black Box scrip currently quoting at Rs 535 on the stock exchanges for huge gains over the long term.
