Q2 2026 Black Box Ltd Earnings Call Transcript
Key Points
- Black Box Ltd (BOM:500463) reported a 14% quarter-on-quarter and 6% year-on-year revenue growth for Q2 FY26, reaching INR1,585 crores, indicating strong business momentum.
- The company expects a stronger H2 FY26 compared to H1, driven by a healthy and diversified order book and improved visibility into key regional pipelines.
- Black Box Ltd has partnered with Wind River to deliver next-generation edge and cloud solutions, expected to generate approximately INR1,350 crores in revenue over the next five years.
- Order bookings for Q2 were robust at $218 million, reflecting an increase from $176 million in Q1 FY26, with a strong backlog of $555 million.
- The company is on track to achieve its full-year order booking target of $1 billion, supported by high-value contracts and a focus on data center and enterprise transformation engagements.
- Despite the positive revenue growth, the company's cash flow conversion was poor due to an increase in inventory and receivables.
- The company has been slow in capitalizing on the large opportunities in the data center segment, with past performance lagging behind market potential.
- There is uncertainty regarding the sustainability of the early 20s revenue growth momentum into FY27 and beyond, with potential normalization to mid-teens.
- The company's tax rate is currently low due to past net operating losses, but it is expected to normalize to 15-20% in the long term.
- Black Box Ltd's inorganic growth strategy is still in the evaluation stage, with no immediate acquisitions finalized, potentially delaying growth aspirations.
Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY26 earnings call of Black Box Limited. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions and expectations of the company as on date of this call. These statements are not guarantee of future performance and involve risk and uncertainties that are difficult to predict.
(Operator Instructions)
I now hand the conference over to Mr. Sanjeev Verma, Whole-Time Director and CEO of the Black Box Limited. Thank you, and over to you, sir.
Good morning, everyone. I hope you all are doing well. On behalf of Black Box Limited, I would like to welcome you to our Q2 and H1 FY26 earnings call. I'll start with an overview of our business performance and then our CFO, Deepak Bansal, will walk you through the financials.
Starting with quarter two performance, I'm pleased to share that our revenue for quarter two FY26 reached INR1,585 crores, marking a solid step-up of 14%
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