Black Box Q3 profit falls 11% to Rs 49.68 crore; revenue rises to Rs 1,659.5 crore

Black Box Q3 profit at Rs 49.68 crore.

Essar Group's IT arm Black Box on Thursday reported an 11.41 per cent decline in consolidated net profit at Rs 49.68 crore in the quarter ended December, primarily due to a one-time provision for the implementation of new labour codes.

The Mumbai-headquartered firm registered a net profit of Rs 56 crore in the year-ago period, according to regulatory filings.

The company's revenue from operations, driven by "sustained execution and improved momentum", came in 10.5 per cent higher at Rs 1,659.58 crore in Q3 FY26, as compared to Rs 1,501.72 crore in Q3 FY25.

As revenue growth accelerates, PAT expansion is expected to outpace topline growth, driven by margin normalisation, improved revenue quality, and greater contribution from high-value opportunities, the company said in a statement.

On a quarter-on-quarter basis, revenue rose 4.73 per cent, while profit fell 10.72 per cent.

The company accounted for a Rs 5.5 crore impact due to changes in employee benefit provisions arising from the implementation of new labour codes.

Black Box recorded an order booking of USD 232 million in the third quarter of FY26, and said it is on track to book USD 1 billion (about Rs 9,000 crore) of orders in FY26 on the back of a strong pipeline.

"Order backlog as of December 31, 2025, was USD601 million (Rs 5,402 crore). Order backlog has grown by about USD 100 million in the 9 months of the current fiscal year on the back of strong order booking, including from the data centre vertical.

"Our investments in the data centre vertical have started to yield results, and the momentum is expected to continue in the coming quarters. Order backlog at the end of FY26 (Mar 31, 2026) is expected to reach USD 800 million-plus, exceeding our initial estimate of USD700 million (Rs 6,300 crore)," it said Notable orders during the quarter include data centre orders from hyperscalers, multiple orders from the US public sector, a large order from an Indian internet giant, and a large order from a bank in Australia.

Black Box CEO Sanjeev Verma said the company's Q3 performance reflects the strength of its focused go-to-market strategy and improving execution across regions.

"With order bookings on track to reach USD 1 billion in FY26 and backlog expected to grow meaningfully ahead of earlier estimates, we are entering FY27 with strong revenue visibility and momentum. As the business mix continues to improve and higher-value opportunities scale, we are confident of accelerating growth while enhancing the quality and resilience of earnings," he noted.

Black Box on Thursday also announced the 100 per cent acquisition of Brazilian solutions integrator 2S Inovações Tecnológicas for about Rs 275 crore in cash consideration.

The acquisition is expected to close by the end of March 2026.

Black Box delivers network and system integration services and solutions, support services, and technology products to businesses in the United States, Europe, India, Asia-Pacific, the Middle East & Africa, and Latin America.