Essar’s tech arm Black Box reports resilient performance in 2nd Quarter of FY26

Mumbai, Nov 13 (BVI) Black Box Limited, Essar’s technology arm and a leading provider of digital infrastructure solutions, has announced its unaudited financial results for the quarter and half year ended September 30, 2025.

The Company delivered a resilient performance, with strong quarter-on-quarter improvements across revenue, operating profit, and net profitability, it said in a statement.

With its transformation program now largely stabilised and a more focused go-to-market architecture in place, the Company is shifting decisively toward sustained revenue acceleration and a higher-quality business mix through FY26.

Backed by robust order wins, a growing backlog, strong execution, deepening client relationships, and a healthy pipeline, the Company is firmly on a growth trajectory and remains confident of delivering a strong second half.

Revenue for Q2 FY26 stood at ₹1,585 crore from ₹1,387 crore in Q1 FY26, witnessing a growth of 14% quarter-on-quarter and 6% year-on-year.

The strong revenue performance reflects a sharp rebound as tariff conditions normalized and earlier project execution delays from Q1 were cleared, bringing the business back to its expected run-rate heading into the second half of the year.

H2 FY26 is expected to outperform H1, supported by a growing order book, improving pipeline visibility, and stronger execution momentum across regions.

EBITDA and EBITDA Margin (%)

EBITDA for the quarter stood at ₹143 crore, up from ₹116 crore in Q1 FY26 representing a growth of 23% quarter-on-quarter and 6% year-on-year.

EBITDA margins improved by 60 basis points on a sequential basis to 9.0% in Q2 FY26, compared to 8.4% in Q1 FY26.

The improvement was primarily driven by higher revenue throughput, better fixed-cost absorption, and a balanced business mix.

With ongoing operational efficiency and cost optimization initiatives, there remains further potential for incremental margin expansion as strategic priorities continue to execute through H2.

Profit after Tax (PAT)

Profit after Tax (PAT) stood at ₹56 crore, up from ₹47 crore, a growth of 17% quarter-on-quarter and 9% year-on-year, reflecting strong operating leverage and improved profitability in the core portfolio.

As revenue growth accelerates in H2 FY26, PAT expansion is expected to outpace topline growth, driven by margin normalization, improved revenue quality, and greater contribution from high-value opportunities. (BVI)