Black Box posts record Q2 revenue as data centre orders lift backlog above USD 1 billion

Black Box has been increasing its exposure to hyperscale data-centre projects, where artificial intelligence infrastructure spending is driving demand for connectivity, integration and network deployment. The digital infrastructure provider reported record revenue of Rs 1,936 crore for Q2 FY27, up 22 per cent YoY and 13 per cent QoQ, as data-centre execution and Technology Products gained momentum.

Earnings before interest, Tax, depreciation and amortisation, or EBITDA, rose 23 per cent YoY to Rs 175 crore. However, the EBITDA margin remained unchanged at 9.0 per cent, indicating that the revenue surge has yet to translate into an immediate quarterly margin expansion. Profit after tax, or PAT, grew faster than revenue, rising 31 per cent YoY to Rs 73 crore.

For the first half of FY27, revenue increased 23 per cent YoY to Rs 3,655 crore, while EBITDA rose 29 per cent to Rs 335 crore. The half-year EBITDA margin improved by 50 basis points, or 0.5 percentage points, to 9.2 per cent. PAT for the period climbed 25 per cent to Rs 129 crore and operating cash flow stood at Rs 115 crore.

The larger development is the expansion in order visibility. Backlog reached a record USD 1.04 billion as of September 30, 2026, up 88 per cent YoY and around 10 per cent QoQ. Q2 Order Bookings rose 37 per cent YoY to USD 298 million, while first-half bookings increased 62 per cent to USD 637 million. The backlog includes a rising share of multi-year data-centre engagements, with projects typically extending over 24 to 36 months.

The quarter also included a full quarter of consolidation of Brazil-based 2S Inovações Tecnológicas, acquired effective May 1, 2026. Black Box secured more than USD 250 million in data-centre orders during the first half and retained its FY27 guidance for revenue growth of 23 per cent to 27 per cent and PAT growth of 38 per cent to 50 per cent. Delivery timelines, however, will remain dependent on customer project ramp-ups and execution of larger hyperscaler programmes.

As of 2:44 pm on November 13, 2026, Black Box shares were trading at Rs 900, up 1.83 per cent from the previous close. The stock has gained 63.24 per cent over one year, sharply ahead of the BSE 500’s 0.08 per cent decline over the comparable period. At the current price, the shares remain about 16.5 per cent below their 52-week high of Rs 1,078.25, while the company’s market capitalisation stood at around Rs 15,696 crore.

What This Means for Investors

The results reinforce Black Box’s transition towards larger, project-led digital infrastructure work. A USD 1.04 billion backlog provides greater medium-term revenue visibility than the company had a year earlier, while higher first-half EBITDA margin and positive operating cash flow suggest some benefit from scale and improved execution. The full-quarter consolidation of 2S also broadens the company’s Latin American capabilities in networking, cybersecurity and managed services. Still, the unchanged Q2 EBITDA margin shows that hiring and delivery-capacity investments are absorbing part of the operating leverage.

The development is supportive for the medium-term earnings case, but execution remains central. At 69.45 times trailing twelve-month earnings and 25.69 times enterprise value to EBITDA, the valuation reflects expectations of sustained backlog conversion, margin progression and stronger cash generation. The key uncertainty is the timing of customer-led mobilisation on large hyperscale projects, particularly because North America and strategic accounts remain important to growth. Working-capital discipline will also warrant attention as project volumes rise.

Disclaimer: The article is for informational purposes only and not investment advice.