In , Black Box Ltd (Data Centre) is outperforming Nifty 500 with +42.6% relative strength. Fundamentals: Weak. On a 5-week streak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: Order Backlog: $601 million
“The total order backlog stands at $601 million as of December 2025. Based on the current order flow trajectory, we expect to significantly exceed our earlier backlog target.”
What: Acquisition Revenue: INR 500 crore
Impact: INR 50 crore EBITDA
“The acquisition scales Black Box' presence in Brazil... expected to add INR500 crore of revenues in FY '27.”
What: EBITDA Margin Target: 10%
Impact: 100 bps expansion
“Our goal is to move to 10%. We are at 9-ish, 8.9%, 9%. So I think this acquisition or otherwise as well, at scale, we believe will be margin accretive.”
Earnings deceleration risks from management commentary
Trigger: Hyperactivity in the data center industry has led to temporary supply chain challenges.
Impact: PAT impact: INR 40-50 million revenue slippage
Management view: Expecting constraints to normalize; revenue shifted to subsequent quarters.
Monitor: logistics
Trigger: Implementation of the new Labor Code in India.
Impact: PAT impact: INR 6 crore
Management view: One-time impact; underlying profitability remains stable.
Monitor: labor
Key quotes from recent conference calls
“I mean we've guided for about INR6750 crore to INR7,000 crore. Can we aspire to about INR6,500 crore, INR6,600 crore so that will entail about INR3,600 crore for H2? [Previous Revenue guidance]”
“The acquisition scales Black Box' presence in Brazil... and is expected to add INR500 crore of revenues in FY '27. [Initiative: Acquisition of 2S Inovações Tecnológicas]”
“To capture the expanding opportunities, we are building a specialized data center AI services team in the U.S. that will focus on higher-value multi-hyperscaler engagements. [Initiative: Data Center AI Services Team]”
“The data center ecosystem is currently witnessing heightened industry activity, which has resulted in shortages across several critical inputs, including optical fibers, cables, GPUs, racks. [Risk (logistics): HIGH]”
Headline numbers from the latest earnings call
Revenue
INR 1,660 crore
Why: Growth was primarily driven by higher order execution during the nine-month period compared to the corresponding period last year.
Revenue growth slowed sequentially but remained positive on a year-on-year basis.
EBITDA
INR 147 crore
Why: Margins remained stable despite higher employee-related costs due to better fixed cost absorption and a balanced business mix.
EBITDA growth lagged revenue growth slightly, leading to a marginal compression in margins.
PAT
INR 50 crore
Why: PAT was primarily impacted by a onetime exceptional charge of approximately INR 6 crore relating to changes in employee benefit provisions.
One-time labor code provisions dragged down the bottom line this quarter.
Other Highlights
• Order bookings of $232 million in Q3 FY26.
• Order backlog reached $601 million as of December 2025.
• Exceptional charge of INR 6 crore for new Labor Code provisions.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Order Backlog
$601 million
Why: Strong customer demand and validation of investment in go-to-market talent.
Q3 Order Bookings
$232 million
Why: Continued focus on securing large high-value contracts in the data center segment.
Project Order Book
$195 million
Why: Driven by focus on large high-value contracts in the data center segment.
Trade Receivables
INR 674 crore
Why: Skewness of invoicing in the last month of the quarter (September).
Days Sales Outstanding (DSO)
55-60 days
Why: Normal level expected as receivables are realized.
Acquisition Revenue Contribution (Brazil)
INR 500 crore
Why: Expected contribution from the 2S acquisition in FY27.
9M FY26 EBITDA Margin
8.8%
Why: Stable margins due to disciplined cost management and pricing discipline.
Forward-looking targets from management for FY26
OPM Guidance
10%
Capex Plan
₹275 Cr
INR 6,325 crore to INR 6,375 crore
Targeting double digits
INR 275 crore
Acquisition of 2S Inovações Tecnológicas in Brazil
Order booking target maintained
Guidance Changes
Revenue FY26: INR 6,750 - 7,000 crore → INR 6,325 - 6,375 crore
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +11% | +4% | Stable |
| PAT (Net Profit) | -11% | +41% | Inflection Down |
| OPM | 9.0% | 0 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Black Box Ltd's latest quarterly results (Dec 2025) show
Black Box Ltd's profit is declining with an inflecting downward trend.
Black Box Ltd's revenue growth trend is stable.
Black Box Ltd's operating margin is expanding.
Black Box Ltd's long-term compounding rates
Black Box Ltd's earnings growth is inflecting downward with mixed signals on a sequential basis.
Black Box Ltd's trailing twelve month (TTM) performance
Black Box Ltd appears overvalued based on our fair value analysis.
Black Box Ltd's current PE ratio is 41.5x.
Black Box Ltd's current PE is 41.5x.
Black Box Ltd's price-to-book ratio is 12.1x.
Black Box Ltd is rated Weak with a fundamental score of 27.89/100. This score is calculated from objective financial metrics
Black Box Ltd has a debt-to-equity ratio of N/A.
Black Box Ltd's return ratios over recent years
Black Box Ltd's operating cash flow is negative (FY2025).
Black Box Ltd's current dividend yield is 0.16%.
Black Box Ltd's shareholding pattern (Mar 2026)
Black Box Ltd's promoter holding has decreased recently.
Black Box Ltd has been outperforming Nifty 500 for 5 consecutive weeks, indicating building momentum.
Black Box Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
Black Box Ltd has 3 key growth catalysts identified from recent earnings analysis
Black Box Ltd has 2 key risks worth monitoring
In Q3 FY26, Black Box Ltd's management highlighted
Black Box Ltd's management has provided the following forward guidance for FY26
Black Box Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why Black Box Ltd may be worth studying
Black Box Ltd investment thesis summary:
Black Box Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
