Black Box (500463) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 consolidated revenue was ₹1,386.74 crore, down 3% YoY, as tariff-related equipment procurement delays deferred project execution and revenue recognition.

• EBITDA rose 1% YoY to ₹116 crore and net profit rose 28% to ₹47.43 crore; the $518m backlog and pipeline above $2.0bn support growth ambitions.

• Strategy is shifting toward larger, longer-term engagements, with a FY29 revenue ambition of $2bn.

Financial highlights

• Consolidated revenue from operations was ₹1,386.74 crore versus ₹1,423.38 crore YoY and ₹1,544.58 crore in Q4 FY25.

• EBITDA was ₹116 crore, up 1% YoY and down 21% QoQ; margin was 8.4%, versus 8.1% YoY and 9.5% QoQ.

• PAT was ₹47.43 crore versus ₹37.09 crore YoY and ₹60.47 crore in Q4; PBT was ₹45 crore, up 12% YoY.

• Gross profit was ₹428 crore, down 2% YoY; gross margin was 30.9%, versus 30.8% YoY and 29.5% QoQ.

• Standalone revenue was ₹75.99 crore and net profit ₹1.16 crore, versus ₹84.18 crore revenue and a ₹2.58 crore net loss YoY.

Outlook and guidance

• FY26 guidance is revenue of ₹6,750–7,000 crore, EBITDA of ₹605–645 crore and EBITDA margin of 9.0%–9.2%; PAT guidance is ₹265–285 crore with 3.8%–4.1% margin.

• FY26 order-booking target is $1bn and year-end backlog target is above $700m, versus $518m at Q1 close; pipeline exceeds $2.0bn.

• Revenue momentum is expected to improve from Q2, with growth expected to track 15%–20% thereafter as delayed and newly won work converts.

• Management targets $2bn revenue by FY29; average order-to-first-revenue lead time is four to six months, and projects generally run six to nine months.