Financial Performance Highlights

Q1 FY27 Financial Results:

  • Revenue: INR1,719 crores (highest ever quarterly revenue), representing 24% year-on-year growth
  • EBITDA: INR160 crores, up 38% year-on-year
  • EBITDA Margin: 9.3%, expanded by 90 basis points
  • Profit After Tax: INR56 crores, increased 18% year-on-year
  • Includes two months of financial consolidation from Brazil acquisition 2S contributing INR60 crores revenue

Operational and Strategic Updates

Order Backlog and Bookings:

  • Order bookings of US$339 million during Q1 FY27
  • Order backlog reached record US$950 million, up 83% year-on-year
  • Backlog tenure for data center engagements ranges between 24-36 months
  • Growing share of large multi-year and mission-critical infrastructure programs

Business Transformation:

  • Transitioned from fragmented customer base to approximately 300 strategic accounts
  • Focus on hyperscalers, Fortune 500 enterprises, financial institutions, healthcare organizations
  • Presence across more than 35 countries
  • Rationalized low-value long-tail customer accounts to improve revenue quality and profitability

Recent Acquisition:

  • Completed acquisition of Brazilian entity 2S
  • Adds approximately US$50 million in annual revenue
  • Expands capabilities across networking, cybersecurity and managed services
  • Provides strategic platform for Latin American market participation

Capacity Expansion:

  • Plans to onboard nearly 2,000 professionals to support growth
  • Investments in sales organization, engineering capabilities and delivery teams
  • Operational efficiencies through global capability center in Bengaluru
  • AI-led productivity initiatives and centralized delivery

Industry Context and Market Opportunity

  • Participating in US$250-300 billion addressable market across data centers, enterprise networking, connectivity infrastructure, cybersecurity, managed services
  • 60-70% of spending targeted in United States markets
  • Global enterprise technology spending expected to exceed US$6.4 trillion, up 14.2% year-on-year
  • Data center systems spending expected at US$822 billion, up 62.5% year-on-year
  • Only India-origin digital infrastructure solutions company executing gigawatt-scale data center programs

FY27 Guidance

Order Backlog: US$1.3 billion to US$1.4 billion (65-75% growth)

Order Bookings: US$1.3 billion to US$1.4 billion (32-45% growth)

Revenue: INR7,800 crores to INR8,000 crores (23-27% growth)

EBITDA: INR725 crores to INR750 crores (27-32% growth)

EBITDA Margin: 9.3% to 9.4% (30-40 basis points improvement)

Profit After Tax: INR300 crores to INR325 crores (38-50% growth)

Long-term Aspiration

  • Build Black Box into INR18,000 crores (US$2 billion) revenue company by FY30
  • INR12,000 crores expected from organic growth
  • INR6,000 crores expected from inorganic growth
  • Supported by four growth pillars: hyperscale digital infrastructure, GSI Americas, India and Rest of World markets, technology product solutions evolution

Cash Flow and Capital Allocation

  • Expect operating cash flow to EBITDA conversion to improve meaningfully over FY26
  • Focus on disciplined working capital management
  • Capital allocation priorities: strengthening people and technology capabilities, working capital requirements, selective acquisitions

Tax Rate Outlook

  • Current tax rate lower due to past operating losses carryforward in various geographies
  • Expected tax rate range of 10-15% for FY27 and FY28
  • Expected normalization to around 20% thereafter

Business Segment Performance

Non-Data Center Business:

  • Expected to grow at modest double-digit rate (~10%)
  • Enterprise spending expected to follow data center infrastructure build-out with a lag

Product Business (TPS):

  • Expected to grow around 20% in current year
  • Focus on mission-critical infrastructure and visualization products (KVM, Emerald)
  • Investments in next-generation AI-led products

Recent Contract Wins

  • Secured US$131 million (approximately INR1,240 crores) order from new global hyperscaler in United States
  • 100% services-based contract with no product component
  • Work on ground expected to start from November 2026

Risk Factors and Execution Timeline

  • Growth expected to be stronger in second half of fiscal year
  • Significant portion of order backlog expected to flow into FY28 revenue
  • Execution timelines dependent on customer schedules and project mobilization
  • Supply chain conditions improved across cables and fiber, supporting faster project execution