Black Box (500463) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 PAT reached a quarterly record of ₹56 crore, up 37% YoY; 9M PAT rose 49% to ₹144 crore, while revenue declined amid subdued orders and delayed decisions.

• Strategy prioritizes higher-value deals, deeper engagement with priority customers and digital infrastructure growth, while exiting lower-value customers.

• FY29 ambition remains US$2 billion revenue, including inorganic growth, with organic revenue expected to reach US$1.4–1.5 billion.

Financial highlights

• Q3 FY25 revenue was ₹1,502 crore, down 9% YoY and flat QoQ; 9M revenue was ₹4,422 crore, down 8% YoY.

• Q3 EBITDA rose 15% YoY to ₹134 crore; 9M EBITDA increased 25% YoY.

• Q3 gross profit rose 5% YoY to ₹448 crore; gross margin expanded to 29.8% from 25.7%. 9M gross profit rose 5% to ₹1,338 crore.

• Q3 EBIT rose 7% YoY to ₹104 crore; 9M EBIT rose 25% to ₹301 crore. Basic EPS was ₹3.33 in Q3 and ₹8.58 for 9M.

Outlook and guidance

• FY25 guidance: revenue ₹5,925–6,000 crore, EBITDA ₹525–535 crore at 8.9% margin, and PAT ₹205–210 crore at 3.5% margin; higher exceptional items affected PAT guidance.

• FY26 targets: revenue ₹6,750–7,000 crore, EBITDA ₹605–645 crore at 9.0%–9.2% margin, and PAT ₹265–285 crore at 3.9%–4.1% margin.

• FY26 organic revenue growth guidance is 13%–17%; stronger win rates are expected from Q1 and pipeline conversion to support revenue from Q2 FY26, with stronger momentum expected in FY27.

• Longer-term targets include double-digit EBITDA margins by FY27 end and US$2 billion revenue by FY29.