Black Box (BBOX) Q2 FY27 Profit Jumps 31% as Data Center Boom Fuels Record Revenue
Black Box's Q2 FY27 profit surged 31% to ₹73 crore, driven by a 22% rise in revenue as its data center business captured booming hyperscaler demand.
Black Box reported a 31% jump in net profit to ₹73 crore for Q2 FY27, with revenue hitting a record ₹1,936 crore. Growth was powered by a surging data center business and a record order backlog providing multi-year visibility.
For Black Box, the quarter was a test of its pivot to the infrastructure powering the AI economy. The global IT integrator delivered, with profit growth outpacing a record top line as it began converting a massive order book into revenue.
Revenue rose 22% year-on-year to ₹1,936 crore, while net profit climbed 31% to ₹73 crore. The net profit margin expanded to 3.8%, a 30 basis point improvement from last year. This marks the second consecutive quarter of record-breaking performance.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 1,936.3YoY +22% | 1,718.5 | 1,584.6 |
| Profit (₹ Cr) | 72.68YoY +31% | 55.92 | 55.65 |
| Net Profit Margin (%) | 3.8YoY +8.6% | 3.3 | 3.5 |
The Data Center Engine Fires Up
Growth was driven by its hyperscale data center infrastructure business, which secured over $250 million in orders in the first half. According to the company's earnings release, this segment's revenue contribution reached 20% in Q2, up from 17% for the full FY26. The order backlog swelled to a record $1,044 million, up 88% year-on-year, providing revenue visibility for 24 to 36 months.
Investing Ahead of the Curve
The surge came with a cost. Employee expenses jumped 37% year-on-year as the company front-loaded hiring to execute large hyperscaler projects. Management, on the AlphaStreet earnings call, said it hired about 300 employees in two months and plans to add 700-800 more over the next 6-9 months. This strategic investment temporarily pressured margins, with the EBITDA margin flat at 9% year-on-year.
Management expects improved cost absorption as these projects ramp up, targeting a 10% EBITDA margin by Q4 FY27. The company reaffirmed its full-year guidance, projecting revenue growth of 23-27% and profit growth of 38-50%.
Key Points
- Net profit grew 31% year-on-year to ₹73 crore, outpacing 22% revenue growth on improved margins.
- A record order backlog of $1.04 billion, up 88% year-on-year, provides multi-year revenue visibility, led by the data center business.
- Strategic hiring for large project execution pushed employee costs up 37%, with margin expansion expected in the second half as revenue scales.
- Management reaffirmed confident FY27 guidance, targeting the upper end of 23-27% revenue growth and 38-50% profit growth.
Hexa Perspective
The quarter confirms Black Box's successful transition into a key contractor for the AI infrastructure build-out. The record backlog de-risks near-term growth, but the story now hinges on execution and cash conversion.
The planned hiring spree is a necessary bet to capture this opportunity, but it tests operating leverage. Investors are paying a premium—the stock trades at 36.5 times earnings, nearly double the industry average—for the promise that this backlog translates into sustained, high-quality earnings and cash flow in the coming quarters.
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