This small-cap Data Center stock, engaged in delivering end-to-end IT solutions, including data center design, deployment, and managed services, enabling seamless connectivity, security, and digital transformation for global enterprises, is in focus after the company expects 29-39 percent net profit growth in FY26.
With a market capitalization of Rs. 8,051.48 crores, the share of Black Box Limited has reached an intraday high of Rs. 486.90 per equity share, rising nearly 1.81 percent from its previous day’s close price of Rs. 478.25. Since then, the stock has retreated and is currently trading at Rs. 475.30 per equity share.
Guidance: For FY26, Black Box Limited expects strong growth across all key areas. The company is targeting revenue between Rs. 6,750 to Rs. 7,000 crore. EBITDA (earnings before interest, taxes, depreciation, and amortization) is expected to grow to Rs. 605–645 crore, with margins improving to 9.0–9.2 percent.
The company’s net profit (PAT) is expected to rise significantly to Rs. 265–285 crore, with a PAT margin of 3.8–4.1 percent. Overall, they are aiming for a 14–22 percent growth in EBITDA and a 29–39 percent growth in PAT compared to FY25.
Additionally, the company is also focused on reaching a double-digit EBITDA margin by the end of FY27. Black Box Limited aims to reach US$2 billion in revenue (Rs. 17,000–18,000 crore) by FY29, which will be a 202 percent growth compared to FY25. The company’s revenue is expected to pick up from the second quarter (Q2) of FY26, driven by improved pipeline conversion and higher win rates in enterprise deals.
Order Book & Pipeline: In Q4, the company secured new orders worth Rs. 1,550 crore, which is more than double the amount from Q3 and the highest so far in FY25. By the end of March 2025, the total order book had grown to US$504 million (Rs. 4,364 crore), an increase of US$39 million compared to the previous quarter.
Most of these new deals are large, long-term contracts with clients in key sectors like cloud services (hyperscalers), healthcare, airports, and education. Additionally, the managed and maintenance services segment saw a strong increase of US$61 million, helping the company achieve more stable revenues and predictable profit margins.
Overview: Black Box Limited was founded in 1976 and is a global leader in digital infrastructure solutions, specializing in network and system integration, managed services, and technology products. The company serves a wide range of industries, including financial services, healthcare, retail, public services, and manufacturing.
Black Box operates worldwide with a presence across the United States, Europe, India, Asia Pacific, the Middle East, and Latin America, supported by around 3,600 professionals and strategic partnerships with leading technology providers.
The company offers end-to-end solutions in network integration, digital connectivity infrastructure, data center buildouts, modern workplace solutions, and cybersecurity. Its product portfolio includes advanced solutions in audio-video (AV), Internet of Things (IoT), KVM, networking, infrastructure, and cabling.
Financial Highlights: Black Box Limited’s revenue has increased from Rs. 1,480 crore in Q4 FY24 to Rs. 1,545 crore in Q4 FY25, which is a growth of 4.39 percent. The net profit has also grown by 46.34 percent, from Rs. 41 crore in Q4 FY24 to Rs. 60 crore in Q4 FY25.
Black Box Limited’s revenue and net profit have grown at a CAGR of 3.58 percent and 41.08 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE stand at 29.2 percent and 43 percent, respectively. Black Box Limited has an earnings per share (EPS) of Rs. 12.1, and its debt-to-equity ratio is 1.24x.
Written By – Nikhil Naik
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
