The IT-enabled services (ITeS) sector in India is experiencing robust growth, with job opportunities projected to surge by 20% in 2025, and over 150,000 fresh hires expected in FY25. This expansion is driven by rising demand in AI, cybersecurity, and cloud computing roles, which are set to grow by 75% as businesses embrace digital transformation and new technologies.
With a market capitalization of Rs 8,859.51 crore, the shares of Black Box Ltd were trading at Rs 523.00 per share, increasing around 5 percent as compared to the previous closing price of Rs 498.10 apiece.
JM Financial, one of the well-known brokerages in India, gave a ‘Buy’ rating on the IT stock with a target price of Rs 670 apiece, indicating a potential upside of 35 percent from the previous closing price of Rs 498.10 per share.
JM Financial views Black Box as a key beneficiary of India’s expanding data centre market, given its core expertise in networking and connectivity. The company is well-positioned to leverage growing global demand and has secured over $340 million in data centre-related contracts from a major global social media client over the past 12 quarters.
Since its acquisition by AGC Networks (Essar Group), Black Box has shown significant financial improvement. From FY22 to FY25, it expanded EBITDA margins by 420 basis points and achieved a 40% CAGR in EPS. Now entering a focused growth phase, the company is leveraging a revamped, verticalised go-to-market strategy to drive further performance.
Black Box is focusing on scaling its top 300 accounts while exiting low-margin ones. This has led to a $504 million order book and a $2.5 billion sales pipeline. Targeting $2 billion revenue by FY29, including $600 million from acquisitions, the company expects momentum from Q2FY26. JM Financial projects 14.2% revenue and 31.2 percent EPS CAGR between FY25 and FY28..
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Looking forward to the company’s financial performance, revenue increased by 4 percent from Rs 1,480 crore in Q4FY24 to Rs 1,545 crore in Q4FY25. Further, during the same time frame, net profit increased by 46 percent from Rs 41 crore to Rs 60 crore.
Black Box reported a strong Q4 FY25 order book of $504 million, led by $365 million in maintenance and managed services. It secured Rs 1,550 crore in new deals, driven by global hyperscalers and infrastructure projects in the US and APAC. The pipeline remains robust, with rising demand across digital infrastructure and large-scale modernization initiatives.
Black Box met FY25 guidance with Rs 5,967 crore revenue and Rs 531 crore EBITDA at an 8.9% margin. For FY26, it targets Rs 6,750–7,000 crore revenue and 9.0%–9.2% EBITDA margin. Growth will be driven by better win rates, large contracts, and cost optimization. FY26 EBITDA and PAT are projected to grow 14%–22% and 29%–39% YoY, respectively.
Black Box Limited provides information technology (IT) solutions. The Company is engaged in delivering cutting-edge technology solutions and consulting services to businesses around the globe. Its IT infrastructure solutions, services, and products enable secure connectivity and meaningful collaboration for businesses in every major market sector on six continents.
Written by Abhishek Singh
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