Black Box Q2 Profit Jumps 31% to Rs 73 Crore on Record Revenue and Strong Data Centre Demand
Shares of Black Box Limited gained on Dalal Street after the global digital infrastructure and IT solutions provider reported strong earnings for the second quarter ended September 30, 2026. The Essar Group-owned company delivered a 31% year-on-year growth in consolidated net profit alongside record quarterly revenue, driven by robust deal executions across hyperscale data centres and enterprise networking solutions.
Key Financial Highlights (Q2 FY27):
- Net Profit (PAT): Consolidated profit after tax stood at Rs 73 crore, up 31% compared to Rs 56 crore in the corresponding quarter of the previous fiscal.
- Revenue from Operations: Quarterly revenue reached an all-time high of Rs 1,936 crore, registering a 22% expansion year-on-year from Rs 1,585 crore and a 13% sequential increase.
- EBITDA & Operating Margins: Earnings before interest, tax, depreciation, and amortisation (EBITDA) advanced 23% year-on-year to Rs 175 crore from Rs 143 crore, while the operating margin remained stable at 9.0%.
- Order Book Visibility: Order bookings during the quarter stood at $298 million, up 37% year-on-year. The company's total order backlog expanded 88% year-on-year to reach a record $1,044 million (approximately Rs 8,700 crore), crossing the $1-billion threshold.
Operational Drivers and Strategic Growth
The September quarter included the full consolidation of Brazil-based 2S Inovações Tecnológicas, which Black Box acquired effective May 1, 2026, boosting its footprint across Latin American enterprise and cloud infrastructure markets.
A critical growth engine for the firm has been the global boom in AI and cloud infrastructure. Black Box secured over $250 million in data centre orders during the first half of the fiscal year, with management noting a robust pipeline of large hyperscale contracts underway.
Commenting on the financial performance, Sanjeev Verma, Whole-time Director and Chief Executive Officer of Black Box Limited, stated that the company is building strong growth momentum with record quarterly revenue and an order backlog exceeding $1 billion, reinforcing confidence in scaling the business toward its immediate target of $2 billion in annual revenue.
Half-Year Performance
For the first half of the financial year (H1 FY27), consolidated revenue grew 23% year-on-year to Rs 3,655 crore compared to Rs 2,971 crore in H1 FY26. EBITDA for the six-month period expanded 29% to Rs 335 crore, lifting margins by 50 basis points to 9.2%. Half-yearly net profit climbed 25% to Rs 129 crore, while operating cash flows stood at Rs 115 crore.
Market Reaction
Investors reacted positively to the earnings beat and the visibility offered by the $1-billion order backlog. On the National Stock Exchange (NSE) and BSE, shares of Black Box traded higher following the earnings announcement, adding to recent gains as mid-cap IT and digital engineering service providers continue to witness selective buying interest.
