Black Box Reports Record Earnings for Second Quarter, Driven by Data Center Demand

Mumbai, November 13 (Daily Kiran) : Black Box Limited, a technology unit of Essar and a global digital infrastructure solutions provider, announced its financial results for the quarter ending September 30. The company reported a record revenue of ₹1,936 crore for the quarter, marking a 22% increase year-over-year and a 13% rise from the previous quarter. EBITDA rose by 23% year-over-year to ₹175 crore, while profit after tax (PAT) surged by 31% to ₹73 crore.

This growth is attributed to the strong performance in hyper-scale data center infrastructure and enterprise solutions, along with rising demand for the company’s technology products. Black Box’s order backlog reached a record $1,044 million, an impressive 88% increase compared to the previous year, further strengthening the company’s growth prospects.

Sanjeev Verma, the company’s full-time director and CEO, stated, “Black Box is maintaining strong growth momentum. We have set a record for quarterly revenue, and our order backlog has surpassed $1 billion. These results reinforce our confidence in achieving our near-term goal of $2 billion in revenue. Our data center business is a key growth driver, with large orders and recurring projects from several hyper-scale companies expanding our role in their infrastructure investments. Our strong presence in the U.S., deep expertise, and ability to execute projects successfully position us to capitalize on the accelerating data center investments. We also have a robust pipeline of significant opportunities.”

Verma highlighted that expanding their enterprise and technology products business in the U.S. and international markets is further solidifying their growth potential. With proven order fulfillment capabilities, the company is poised for large-scale operations. Continuous hiring, investment in personnel, and enhancement of delivery capabilities will aid in completing major projects and advancing to the next phase of growth.

Deepak Kumar Bansal, Executive Director and Global CFO, noted that the second quarter performance reflects Black Box’s increasing earning capacity. PAT rose by 31% to ₹73 crore, exceeding the 22% revenue growth. The EBITDA margin for the first half of fiscal year 2027 increased by 50 basis points to 9.2%, with operational cash flow at ₹115 crore. “We are translating growth into improved profitability and cash generation. Our expanding data center business and strong order pipeline provide a solid foundation for revenue and earnings growth,” he stated.

Bansal expressed confidence in achieving their fiscal year 2027 revenue growth target of 23-27% and PAT growth of 38-50%. He anticipates high double-digit profit growth and strong cash flow in the coming years. Disciplined working capital management and prudent capital allocation are central to their strategy of converting these opportunities into long-term shareholder value.

The company reported that rapidly growing investments in AI infrastructure are driving demand for hyper-scale data center capacity, connectivity, and network infrastructure. Black Box is enhancing its participation in this market through established relationships with hyper-scale companies, technical expertise, and the capacity to handle large-scale projects.

In the first half of fiscal year 2027, Black Box secured over $250 million in data center-related orders. A strong pipeline of large hyper-scale projects is expected to lead to significant orders and accelerated business growth in upcoming quarters.

The company collaborates on infrastructure projects related to gigawatt-level data center developments. Its experience in completing complex projects strengthens relationships with existing clients and creates opportunities for participation in larger infrastructure projects.

To meet this demand, Black Box is continuously enhancing its engineering and delivery capabilities, particularly in the U.S. In the second quarter of fiscal year 2027, the company secured $298 million in new orders, a 37% increase year-over-year. The order backlog reached a record $1,044 million, marking an 88% increase compared to the previous year and approximately 10% more than the last quarter.

This backlog includes a growing share of large, multi-year projects. Orders based on these projects provide better revenue visibility for the next 24 to 36 months. With a robust order pipeline across hyper-scale, enterprise, and multiple countries, Black Box management is confident in achieving the targets set for fiscal year 2027.

The company is continually strengthening its relationships with enterprise clients in the U.S. and international markets, providing services to customers in technology, healthcare, financial services, industrial, and retail sectors.

During the second quarter of fiscal year 2027, Black Box engaged in various projects related to network infrastructure, connectivity, data center integration, and digital workplace solutions. These projects include collaborations with a leading telecommunications company in India, global technology and semiconductor firms, a healthcare provider in the U.S., a global pharmaceutical company, and a major financial institution in America, along with retail and public sector clients.

These initiatives reinforce the company’s strategy to expand its diverse customer base and strengthen relationships with its 300 strategic enterprise accounts. The technology products business is also experiencing growth as customers prioritize essential solutions.