Black Box (500463) Q4 24/25 earnings summary

Executive summary

• FY25 revenue was Rs. 5,966.91 crore versus Rs. 6,281.58 crore; EBITDA rose 24% to Rs. 531 crore and PAT rose 49% to Rs. 204.78 crore.

• Q4 revenue was Rs. 1,544.58 crore versus Rs. 1,480.35 crore; EBITDA rose 21% to Rs. 147 crore and consolidated net profit was Rs. 56.08 crore versus Rs. 40.90 crore.

• Q4 orders reached a FY record of Rs. 1,550 crore; the March 2025 backlog was US$504 million (Rs. 4,364 crore), covering roughly two-thirds of revenue.

Financial highlights

• FY25 gross profit rose 5% to Rs. 1,794 crore, with gross margin expanding to 30.1% from 27.3%.

• FY25 EBIT increased 26% to Rs. 422 crore, with margin at 7.1% versus 5.3%; PBT rose 35% to Rs. 212 crore.

• FY25 EBITDA margin improved to 8.9% from 6.8%; PAT margin increased to 3.4% from 2.2%.

• FY25 basic EPS was Rs. 12.16 versus Rs. 8.20; Q4 basic EPS was Rs. 3.57 versus Rs. 2.44, not annualized.

• Consolidated operating cash flow was negative Rs. 87.61 crore versus positive Rs. 129.45 crore in FY24; FY25 cash and cash equivalents were Rs. 213.76 crore.

Outlook and guidance

• FY26 guidance: revenue Rs. 6,750–7,000 crore, EBITDA Rs. 605–645 crore, EBITDA margin 9.0%–9.2%, and PAT Rs. 265–285 crore.

• FY26 EBITDA growth is guided at 14%–22% and PAT growth at 29%–39%; revenue ramp-up and stronger pipeline conversion are expected from Q2 FY26.

• FY26 margin guidance reflects upfront growth spending; scale, larger contracts, efficiency and operating leverage are expected to support improvement, with exit margin expected above 10%.

• Targets include double-digit EBITDA margin by FY27 end and US$2 billion revenue by FY29, including US$1.3–1.4 billion organic revenue and estimated US$600–700 million inorganic growth.

• Managed and annuity business is targeted to exceed 40% near term and approach a 50/50 mix toward FY27–FY29.