Black Box September-quarter profit rises 31% to Rs 72.68 crore

Black Box Limited reported consolidated profit of Rs 72.68 crore for the quarter ended September 30, 2026, up 31% from Rs 55.65 crore a year earlier, as system-integration revenue increased 22% to Rs 1,608.95 crore and that segment’s result rose to Rs 142.12 crore.

How did Black Box perform in the September quarter?

Black Box reported revenue from operations of Rs 1,936.30 crore in the September 2026 quarter, compared with Rs 1,584.59 crore in the September 2025 quarter. Total income increased to Rs 1,939.49 crore from Rs 1,585.53 crore, while profit before tax rose to Rs 81.28 crore from Rs 61.03 crore.

Profit before exceptional items and tax increased to Rs 93.78 crore from Rs 75.17 crore, while net exceptional expenses declined to Rs 12.50 crore from Rs 14.14 crore. The September 2026 exceptional amount comprised Rs 9.38 crore of severance expenses and Rs 3.12 crore from lease foreclosures. Tax expense increased to Rs 8.60 crore from Rs 5.38 crore.

Total expenses rose to Rs 1,837.43 crore from Rs 1,509.75 crore. Employee benefits expense increased to Rs 752.16 crore from Rs 548.95 crore, service charges rose to Rs 234.42 crore from Rs 194.55 crore, and finance costs rose to Rs 49.67 crore from Rs 39.46 crore. Purchases of stock-in-trade declined to Rs 616.64 crore from Rs 747.61 crore.

The results were reviewed by the Audit Committee and approved by the Board of Directors on November 13, 2026. Basic earnings per share after exceptional items were Rs 4.09 for the September 2026 quarter, compared with Rs 3.28 a year earlier; the company stated that quarterly earnings per share were not annualised.

Which business segment drove Black Box revenue growth?

System integration drove Black Box’s revenue increase, with segment revenue rising to Rs 1,608.95 crore from Rs 1,322.85 crore a year earlier. Its segment result increased to Rs 142.12 crore from Rs 112.75 crore, compared with total segment results of Rs 143.54 crore and Rs 114.30 crore, respectively.

Technology product solutions recorded quarterly revenue of Rs 292.54 crore, up from Rs 220.54 crore, and a segment profit of Rs 4.07 crore against a Rs 10.06 crore loss a year earlier. The others segment reported revenue of Rs 34.81 crore versus Rs 41.20 crore, while its result fell to Rs 2.35 crore from Rs 11.61 crore.

For the six months ended September 30, 2026, system-integration revenue was Rs 3,086.10 crore, compared with Rs 2,484.45 crore in the prior-year period. Its segment result was Rs 280.48 crore, up from Rs 190.09 crore. Technology product solutions generated Rs 494.99 crore of half-year revenue, compared with Rs 409.10 crore, but reported a Rs 9.83 crore segment loss.

Black Box said it uses a business-activity reporting format because management considers it more meaningful for forecasting. The company did not provide segment assets and liabilities, stating that assets and liabilities are used interchangeably across segments and a meaningful segregation was not currently practicable.

What do Black Box’s half-year results and cash flows show?

Black Box reported consolidated profit of Rs 128.60 crore for the six months ended September 30, 2026, compared with Rs 103.08 crore a year earlier. Revenue from operations rose to Rs 3,654.80 crore from Rs 2,971.33 crore, while profit before tax increased to Rs 142.41 crore from Rs 106.23 crore.

Half-year exceptional expenses were Rs 31.41 crore, compared with Rs 26.74 crore in the previous year’s six months. The 2026 amount included Rs 25.20 crore of severance costs at BBX Inc. related to manpower rationalisation and Rs 6.21 crore from early lease terminations. Profit before exceptional items and tax was Rs 173.82 crore, versus Rs 132.97 crore.

Net cash generated from operating activities was Rs 115.27 crore, compared with Rs 96.66 crore a year earlier. Trade receivables generated Rs 276.30 crore of cash, against a Rs 117.11 crore use in the prior-year period, while financial and other assets used Rs 333.57 crore and trade payables used Rs 280.92 crore.

Cash and cash equivalents stood at Rs 595.87 crore on September 30, 2026, compared with Rs 527.61 crore on March 31, 2026. Investing activities used Rs 276.48 crore, including Rs 315.46 crore paid for acquisitions of subsidiaries, while financing activities generated Rs 229.47 crore after Rs 395.06 crore of term-loan drawdowns.

What acquisition and balance-sheet changes did Black Box disclose?

Black Box acquired 100% of 2S Inovações Tecnológicas S.A. effective May 1, 2026 for total consideration of Rs 427.34 crore. The consideration includes deferred consideration and an earn-out based on agreed performance targets, and the acquired business has been consolidated from the acquisition date.

The acquisition resulted in provisionally determined goodwill of Rs 568.23 crore, representing the excess of consideration over net identifiable assets acquired, according to Black Box. The purchase-price allocation remains provisional pending finalisation within the measurement period under Indian Accounting Standard 103, Business Combinations.

Total assets increased to Rs 5,360.22 crore at September 30, 2026 from Rs 4,293.70 crore at March 31, 2026. Total liabilities increased to Rs 3,944.43 crore from Rs 3,006.79 crore, while total equity rose to Rs 1,415.79 crore from Rs 1,286.91 crore.

Non-current borrowings increased to Rs 1,184.86 crore from Rs 797.03 crore over the six months, while current borrowings declined to Rs 20.19 crore from Rs 29.92 crore. A final dividend of Rs 1 per equity share for the year ended March 31, 2026 was approved by shareholders on September 16, 2026 and paid on September 23, 2026.

What foreign-exchange compliance matters remain unresolved for Black Box?

Black Box reported foreign-currency trade payables of Rs 20.44 crore overdue by more than six months at September 30, 2026, compared with Rs 29.37 crore at March 31, 2026. Of the September balance, Rs 10.38 crore had been outstanding for more than three years, compared with Rs 12.01 crore six months earlier.

The group also reported overdue foreign-currency trade receivables of Rs 7.44 crore, other financial assets of Rs 10.90 crore and other current assets of Rs 0.24 crore that had been outstanding for more than nine months. These balances included Rs 3.95 crore outstanding for more than three years.

Black Box said its holding company and Indian subsidiaries filed applications through authorised dealer Category-I banks for extensions and condonation of delays. Applications for receivables totalled Rs 14.64 crore during the quarter and Rs 3.94 crore after the quarter-end, with approvals awaited at the reporting date.

For payables, applications totalling Rs 0.67 crore were filed after the quarter-end. Management said the relevant companies were approaching the Reserve Bank of India through their authorised dealer banks for write-back of Rs 8.93 crore of residual payables for which extensions had not been filed. No penalties or fines had been recognised in the September 2026 consolidated results.

Conclusion

Black Box’s September-quarter profit increase reflected a Rs 351.71 crore year-on-year rise in revenue from operations and a Rs 29.37 crore increase in system-integration segment result. Technology product solutions moved from a Rs 10.06 crore quarterly segment loss to a Rs 4.07 crore profit, though it retained a Rs 9.83 crore loss for the first half.

The next disclosures can show how the May 1, 2026 acquisition of 2S Inovações Tecnológicas S.A., valued at Rs 427.34 crore, develops as its provisional purchase-price allocation is finalised. They can also address the pending authorised dealer bank applications and the planned approach to Rs 8.93 crore of residual overdue foreign-currency payables.