Black Box reports 28 pc YoY growth in PAT for Q1 FY26
Building on the strong operational foundation laid in FY25, when the Company completed its multi-year turnaround and achieved significant margin expansion, Q1 FY26 reflected continued discipline in execution, robust profitability, and an expanding order book.
Revenue for Q1 FY26 stood at Rs 1,387 crore compared to Rs 1,423 crore in Q1 FY25. The delay in equipment procurement by certain clients, because of the prevailing tariff environment, resulted in deference of the service execution and revenue recognition.
EBITDA for the quarter was Rs 116 crore, representing a 1 per cent year-on-year growth. EBITDA margins improved by 30 basis points to 8.4 per ent in Q1 FY26 year-on-year, despite lower fixed cost absorption on account of a decrease in revenues.
Profit after tax (PAT) rose 28 per cent year-on-year to Rs 47 crore from Rs 37 crore in Q1 FY25. PAT margins improved 80 basis points, driven by a reduction in exceptional items and lower taxes.
Business and Operations highlights
Order momentum remained strong, with the backlog at the end of Q1 FY26 at Rs 4,433 crore ($518 million), up from Rs 4,313 crore ($504 million) at the close of FY25. Order bookings during the quarter were robust at Rs 1,506 crore ($176 million), marking a strong start towards the company's focus on revenue growth.
Nearly two-thirds of all the deals won in Q1 FY26 were high-value engagements, demonstrating the success of the ongoing transformation and the company's strategic focus on large-scale projects with global marquee clients.
The Company also continued to streamline its customer portfolio by reducing the long tail of low-value accounts, bringing the total to below 1,000 from around 1,500 last year. The Company continues to leverage its global presence and local expertise to win large-scale, high-value projects across geographies.
Notable order wins during the quarter included a very large project in the United States from a leading financial services giant, as well as a workplace solutions engagement from one of the world's largest OTT players for their operations in Latin America. The Company also secured two significant data center orders in the United States, one from a global hyperscaler and another from a top-ten global co-location provider.
Other key wins included a workplace solutions project in the United States from a top-tier city transport authority, a combined connectivity infrastructure and networking order from a prominent public services organization, and a large networking deal from a reputed 200-year-old research university in the United States.
Commenting on the results, Sanjeev Verma, Whole Time Director, said, "Over the past five years, we have transformed Black Box from a loss-making entity into a profitable, cash-generating business with a strong balance sheet. With the turnaround complete, FY26 is about accelerating growth, scaling revenues, and capturing market leadership. While the year began at a slower pace, we are seeing solid traction in key accounts and are actively engaged in multiple high-value opportunities. Supported by our differentiated capabilities, robust pipeline, and committed teams, we remain confident in delivering sustainable, long-term growth."
Deepak Kumar Bansal, Executive Director and Global CFO, added, 'While Q1 is typically softer than Q4, this quarter's performance also reflected some client-driven delays in equipment procurement due to the prevailing tariff environment, which impacted the timing of revenue recognition and operating margins. Despite this, we achieved year-on-year growth in both EBITDA and PAT, demonstrating our operational efficiency and margin resilience. With a robust order book, healthy cash reserves, and a strengthened go-to-market strategy, we remain confident to deliver on our growth ambitions for the remainder of the fiscal year.'
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