Black Box Q4 net profit jumps 47% to Rs 60.4 cr on margin gains, revenue up 4%

Essar Group's IT arm Black Box has reported a 47.6 per cent year-on-year increase in consolidated net profit to Rs 60.4 crore in the March-ended quarter. It had logged a net profit of Rs 40.9 crore in the corresponding quarter of the previous fiscal, according to a regulatory filing.

For FY25, Black Box posted a consolidated revenue of Rs 5,967 crore, compared to Rs 6,282 crore in FY24, reflecting a 5% dip mainly due to delayed customer decisions and the company’s exit from low-margin business. However, this move proved beneficial as EBITDA rose 24% YoY to ₹531 crore, with margins improving by 210 basis points to 8.9%. Net profit surged 49% to ₹205 crore, and PAT margin expanded to 3.4%.

The company’s Q4FY25 performance remained strong, with revenues rising 4% YoY to Rs 1,545 crore. EBITDA grew 21% YoY to Rs 147 crore, with margins improving to 9.5%. 

In the first quarter of the year, Black Box announced new contract victories totaling more than Rs 1,550 crore. This includes securing a Rs 240-crore order for a significant infrastructure modernization project with a top hospital network in the United States.

Order book momentum and key wins

> Black Box reported Rs1,550+ crore in new deal wins in Q4 alone—over double the average of the previous three quarters. Noteworthy deals included:

> Rs 240 crore digital modernization contract from a major U.S. hospital network

> Rs 225+ crore in data center services for global hyperscalers

> Rs 130 crore airport modernization project

> Rs 90 crore contract from a leading U.S. university

> Rs 90 crore deal with an APAC-based consumer electronics giant

The consolidated order backlog stood at $504 million as of March 31, 2025—covering nearly two-thirds of projected FY26 revenue.

India focus and strategic initiatives

As part of its India expansion strategy, Black Box committed Rs100 crore to boost domestic operations and scale its Bengaluru Center of Excellence. Two major Indian deals worth Rs 180 crore were secured during the year in the telecom and municipal infrastructure sectors, aligning with its ambition to double India-based revenues.

In a sign of its improved financial standing, CRISIL upgraded Black Box’s long-term credit rating to BBB+/Stable in March 2025. The board also recommended a final dividend of 50% (₹1 per share on a face value of ₹2), subject to shareholder approval.

Sanjeev Verma, Whole Time Director, said, “Our strategic focus on high-value customer segments and operational rigor has led to a meaningful expansion in both order book and profitability.”

Deepak Kumar Bansal, Executive Director and Global CFO, added, “FY25 marked strong progress on profitability and capital efficiency. With strong ROE, healthy cash reserves, and a growing pipeline, we’re confident in achieving our FY26 financial goals.”