Black Box Q1 FY27 Consolidated Profit Up 11% YoY

Financial Performance (Consolidated)

Income Statement:

• Revenue from operations: ₹1,718.50 crore (Q1 FY27) vs ₹1,386.74 crore (Q1 FY26)
• Other income: ₹3.75 crore (Q1 FY27) vs ₹1.72 crore (Q1 FY26)
• Total income: ₹1,722.25 crore (Q1 FY27) vs ₹1,388.46 crore (Q1 FY26)
• Profit before tax: ₹61.43 crore (Q1 FY27) vs ₹45.20 crore (Q1 FY26)
• Profit for the period: ₹55.92 crore (Q1 FY27) vs ₹47.43 crore (Q1 FY26)
• Total comprehensive income: ₹58.44 crore (Q1 FY27) vs ₹61.62 crore (Q1 FY26)

Earnings Per Share (Face value ₹2):

• Basic EPS (before exceptional items): ₹4.21 (Q1 FY27) vs ₹3.54 (Q1 FY26)
• Diluted EPS (before exceptional items): ₹4.21 (Q1 FY27) vs ₹3.52 (Q1 FY26)
• Basic EPS (after exceptional items): ₹3.15 (Q1 FY27) vs ₹2.80 (Q1 FY26)
• Diluted EPS (after exceptional items): ₹3.15 (Q1 FY27) vs ₹2.79 (Q1 FY26)

Segment Performance (Q1 FY27):

• System Integration: Revenue ₹1,412.54 crore, Segment result ₹138.57 crore
• Technology Product Solutions: Revenue ₹267.06 crore, Segment result (₹14.11) crore
• Others: Revenue ₹38.90 crore, Segment result (₹1.12) crore

Exceptional Items

Q1 FY27 exceptional expenses of ₹18.91 crore comprising:

• Severance expenses: ₹15.82 crore (rationalization of manpower at BBX Inc.)
• Foreclosure of leases: ₹3.09 crore (early termination of lease agreements)

Capital Structure

• Paid-up equity share capital increased from ₹35.50 crore (177,495,255 shares) to ₹35.52 crore (177,599,205 shares) due to allotment of 103,950 equity shares under ESOP Scheme, 2015

Regulatory Compliance Issue

The auditor draws attention to Note 7 regarding delays in foreign exchange remittances:

• Import payments delayed: ₹20.95 crore (consolidated), ₹2.93 crore (standalone)
• Export proceeds delayed: ₹9.21 crore (consolidated), ₹6.67 crore (standalone)
• Other receipts delayed: ₹9.15 crore (consolidated), ₹8.93 crore (standalone)

Management has filed applications with Authorized Dealer banks for extension of time limit and condonation of delays. Responses are awaited. The management believes no material penalties/fines will be levied.

Significant Events

Acquisition: The Group acquired 100% equity interest in 2S Technologies effective May 1, 2026, for a total purchase consideration of ₹496.59 crore, including deferred consideration and earn-out. Purchase price allocation is provisional and will be completed within the measurement period prescribed under Ind AS 103.

Labour Code Impact: Effective November 21, 2025, the New Labour Codes resulted in material increase in provision for employee benefits. The Group accounted ₹5.55 crore as exceptional item in FY26 for past service costs.

Standalone Performance

• Revenue from operations: ₹96.38 crore (Q1 FY27) vs ₹75.99 crore (Q1 FY26)
• Standalone loss for the period: (₹2.40) crore (Q1 FY27) vs profit of ₹1.16 crore (Q1 FY26)

Dividend

The Board has recommended a final dividend of Re. 1 per equity share (face value ₹2) for FY26, subject to shareholder approval at the 40th Annual General Meeting.

Subsidiaries

The consolidated results include 76 subsidiaries as listed in Annexure 1, including Black Box Corporation, various international subsidiaries, and the newly incorporated Black Box Technologies Company, Saudi Arabia (incorporated February 19, 2026).

Auditor's Conclusion

The auditor concluded that nothing has come to their attention that causes them to believe that the financial results contain any material misstatement, though their conclusion is not modified regarding the FEMA non-compliance matter.