Black Box Q3 FY26 results: net profit down 11.4% to ₹49.68 crore, revenue up 10.5%

How did Black Box perform in Q3 FY26?

Black Box reported consolidated revenue of ₹1,660 crore for Q3 FY26, compared with ₹1,502 crore in Q3 FY25 and ₹1,585 crore in Q2 FY26. Total income was ₹1,660.76 crore, up 10.5% year on year and 4.7% sequentially. The board approved the unaudited standalone and consolidated results for the October–December 2025 quarter, and the figures reviewed here are consolidated.

EBITDA rose to ₹146.91 crore from ₹133.65 crore a year earlier and ₹142.75 crore in Q2 FY26. The margin was 8.9%, unchanged from Q3 FY25 but 0.1 percentage points below Q2 FY26. PBT was ₹56.75 crore, down 4.2% year on year and 7.1% sequentially, while PAT was ₹49.68 crore, down 11.4% and 10.7%, respectively. Basic EPS was ₹2.92, compared with ₹3.33 and ₹3.28.

On a standalone basis, revenue was ₹102.87 crore and PAT before exceptional items was ₹1.46 crore, with revenue up 18.1%. The standalone PAT figure was a net loss of ₹1.34 crore. The presentation stated that consolidated Q3 PAT was primarily affected by a one-time exceptional impact of ₹6 crore arising from changes in employee benefit provisions under the New Labour Code.

What changed in Black Box's costs and profit?

Against Q3 FY25, total expenses increased by ₹151.56 crore to ₹1,582.09 crore. Employee cost was ₹587.10 crore, up ₹34.96 crore or 6.3%, and other expenses were ₹336.63 crore, up ₹35.75 crore or 11.9%. Finance costs rose by ₹8.27 crore to ₹39.58 crore, while depreciation fell by ₹1.31 crore to ₹29.84 crore. Cost of materials declined by ₹26 crore to ₹0.49 crore.

How did the first nine months of FY26 go?

For the first nine months of FY26, consolidated revenue was ₹4,630.91 crore, up ₹208.58 crore or 4.7% from ₹4,422.33 crore in 9M FY25. Total income was ₹4,634.75 crore, compared with ₹4,425.84 crore. The company attributed the revenue increase to higher order execution than in the corresponding period.

PBT rose to ₹163.04 crore from ₹154.08 crore, an increase of ₹8.96 crore or 5.8%. PAT was ₹152.76 crore, up ₹8.45 crore or 5.9%, while basic EPS increased by ₹0.41 to ₹8.99 from ₹8.58. The 9M FY26 investor presentation reported EBITDA of ₹406 crore, compared with ₹384 crore in 9M FY25, and showed EBITDA margins of 8.8% and 8.7%, respectively.

How has Black Box done over the last 8 quarters?

Revenue reached its highest level in Q3 FY26 at ₹1,659.58 crore, after ₹1,584.59 crore in Q2 FY26, and its lowest point in the reported series was ₹1,386.74 crore in Q1 FY26. PAT rose to ₹60.47 crore in Q4 FY25 before declining to ₹47.43 crore in Q1 FY26 and recovering to ₹55.65 crore in Q2 FY26. Q3 FY26 PAT was ₹49.68 crore.

The EBITDA margin peaked at 9.5% in Q4 FY25 and bottomed at 8.1% in Q1 FY25. It recovered to 9.0% in Q2 FY26 and was 8.9% in Q3 FY26. The current direction shows higher revenue in Q3 FY26, but lower PAT and a marginally lower EBITDA margin than in the previous quarter. Revenue rose year on year in each of the last two quarters.

Which businesses drove the quarter?

System integration reported revenue of ₹1,396.78 crore in Q3 FY26, up 10.3% from ₹1,266.56 crore in the year-ago quarter. Segment EBIT was ₹110.04 crore, compared with ₹115.75 crore in Q3 FY25, and the EBIT margin was 7.9%.

Technology product solutions reported revenue of ₹226.47 crore, up 14.7% from ₹197.43 crore. EBIT was ₹5.86 crore against a loss of ₹10.24 crore in the year-ago quarter, and the EBIT margin was 2.6%. Others recorded revenue of ₹36.33 crore, down 3.7% from ₹37.73 crore, while EBIT was ₹5.64 crore compared with ₹6.63 crore; the EBIT margin was 15.5%.

What else did the company announce?

The board approved 8,179 equity shares of ₹2 each at an issue price of ₹417, including a premium of ₹415, on conversion of warrants by Manish Agarwal, a non-promoter. The company received ₹34,10,643, and 70,04,533 warrants remained outstanding for conversion after the allotment.

Black Box’s Brazil subsidiary signed a definitive agreement to acquire 100% of 2S Inovações Tecnológicas for around ₹275 crore, payable at closing subject to working-capital adjustments and deferred earn-out payments linked to performance over the next two years. The filing said the transaction was subject to customary closing conditions, consents and approvals, and was expected to close by end-March 2026.

The board also approved eight appointments as senior management personnel, including Kannan Ramaiah as Chief Human Resources Officer, Bikram Sahoo as Chief Technology Officer, Mike Carney as Chief of Strategies and Transformation, and Rick Gannon as Chief Operating Officer. The company also submitted its Q3 FY26 investor presentation.

What did Black Box's management say?

Management said FY26 revenue guidance had been revised to ₹6,325-6,375 cr from ₹6,750-7,000 cr, with EBITDA guidance of ₹555-575 cr and PAT guidance of ₹220-230 cr. It maintained the approximately $1 billion FY26 order-booking target and raised the FY26-end order backlog target to around $800 million from around $700 million. Management also maintained a 10% medium-term EBITDA margin target, compared with the current 8.9%.

The company said supply-chain shortages of fibre, cables, GPUs, racks and power infrastructure, along with temporary customer-level delays, shifted approximately $40-45M of FY26 revenue into FY27. Management said Q4 revenue would also be affected. It also identified continued exceptional severance and rent-restructuring charges, quarterly order-book variability, and hyperscaler concentration as risks.

Management said the 2S acquisition was expected to add ₹500 crore of revenue and a ₹50 crore EBITDA run-rate in FY27 after integration. It retained a long-term revenue ambition of $2 billion by FY30 and said this would require a 30-35% CAGR with inorganic contribution. CEO Sanjeev Verma said, “Our goal next year moving into should be upward of $300 million, $350 million every quarter going forward. We are currently at $230 million, $250 million.”

CFO Deepak Bansal said, “We will be paying close to around INR275 crore at closing, and this is subject to some working capital adjustments. And then there is the additional deferred payments, including earnouts linked to the performance, which we will pay over the next 2 years. So roughly, let's say, we will be making around INR50 crore of the EBITDA from this. So from that perspective, we will be paying at closing close to around 5, 5.5x.” No analyst questions were documented in the supplied facts.

How did Black Box shares react?

The results appeared after market hours. From the price when the filing appeared, the stock fell 3.0% after 5 minutes, 4.5% after 15 minutes and 3.7% after 30 minutes. On the reaction day, it closed 2.0% below its previous close of ₹576.95.

By the next day’s close, the stock was down 6.9% from its pre-results close. By the fifth session’s close, it was down 11.7%. The IT Enabled Services industry median moved down 1.5% on the reaction day, 3.6% by the next close and 6.4% by the fifth close. Black Box’s respective excess moves were 0.5 percentage points, 3.3 percentage points and 5.3 percentage points below the industry median.

Earlier results-day reactions were mixed: the stock rose 3.7% on 12 November 2025 and 4.9% on 9 November 2024, while it fell on 13 August 2025, 27 May 2025, 11 February 2025, 13 August 2024 and 30 May 2024.

How did other IT Enabled Services companies do?

A total of 57 IT Enabled Services peers were compared for revenue growth, with a median revenue growth of 19.2%. Among them, 24 grew more slowly than Black Box and 33 grew faster than Black Box, which recorded Q3 FY26 revenue growth of 10.5%.

Of the 63 peers for which profit was compared, 35 reported higher profit. The peer comparison was recorded as of 5 November 2026.