Q3 25/26

Feb 11, 2026

Summary

Q3 revenue rose 11% YoY, while supply-chain and customer delays prompted a lower FY26 revenue outlook. Bookings and backlog remain strong, and the Brazil acquisition is expected to add FY27 revenue and EBITDA.

Ladies and gentlemen, good day and welcome to the Q3 and nine months FY26 earnings conference call of Black Box Limited. This conference call may contain forward-looking statements about the company, which are based on the belief, opinion, and expectations of the company as on the date of this call. These statements are not the guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participants' lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand over the call to Mr. Sanjeev Verma, Whole-time Director and CEO of Black Box Limited. Thank you, and over to you, sir. Good morning, everyone, and thank you for joining us. On behalf of Black Box Limited, I extend a warm welcome to our Q3 and nine-month of FY26 earnings call. I will begin by sharing an overview of our business performance, after which our CFO, Mr. Deepak Bansal, will take you through the financial highlights. Starting with our Q3 performance, we are pleased to report revenues of INR 1,660 crore for Q3 FY26, representing growth of 11% year-over-year and 5% quarter-on-quarter. For nine months of FY26, our revenue stood at INR 4,631 crore, reflecting a growth of 5% YOY. The growth was primarily driven by higher order execution during nine months FY26 compared to the corresponding period last year. From a forward-looking perspective, the business momentum continues to remain encouraging, and this confidence is driven by a healthy and expanding order book, improving pipeline visibility, which together positions us well for sustained growth in the coming quarters. For nine months FY26, the company booked orders worth $626 million. The company continues to maintain strong order momentum and remains confident of achieving its FY26 order booking guidance of approximately $1 billion, thereby entering FY27 with a strong traction. Supported by sustained order wins, the order backlog is now expected to exceed our early estimate and reach around $800 million by the end of March 2026, which is approximately $100 million higher than the earlier estimate backlog of $700 million, reflecting a growth of 60% year-on-year compared to the earlier estimated growth of 40% year-on-year. This increase reflects continued customer demand, validation of our investment in go-to-market talent, providing strong revenue visibility for the upcoming period. The incremental $100 million addition to FY26 closing order backlog is expected to be driven by two key factors. Approximately $40 million-$45 million relates to revenue that was initially expected to be recognized in FY26 but has since shifted due to temporary customer-level delays and supply chain constraints. As these challenges gradually normalize and execution progresses, this revenue is expected to flow in FY 2027. The remaining $55 million-$60 million is expected to be driven by incremental order wins in Q4, supported by improving traction across key verticals and strengthening customer pipelines. The project order book witnessed a ro- Ladies and gentlemen, the line for the management has gone disconnected. Please stay connected. Meanwhile, I connect the line. Available. Ladies and gentlemen, the line for the management has been reconnected. Thank you for your patience. Sanjiv, sir, please proceed. Thanks, Sanjiv. Please- Am I audible? Yes, sir. You are audible. Please proceed, sir. Sorry for the disconnection here. The project order book witnessed a robust growth reflecting an upside of $37 million at $195 million in Q3 FY26 compared to $158 million in Q2 of FY26. The performance is driven by the company's continued focus on securing large, high-value contracts, particularly in data center segment, which remains a key growth driver. Over the quarter gone by, we have seen extended project execution timeline due to industry-wide shortage of fibers and related accessories. While investment in data center segment have begun to show encouraging traction and order inflow momentum remains strong, revenue realization from these projects has shifted to subsequent periods due to supply chain and infrastructure-related constraints. The data center ecosystem is currently witnessing heightened industry activity, which has resulted in shortages across several critical inputs, including optical fibers, cables, GPUs, racks, et cetera, power infrastructure, and funding access. This is not only impacting the data center industry, but the entire digital infrastructure industry where these materials are used. These constraints have delayed project commencement as well as execution timelines. Such strong demand and hyperactivity in the industry has led to temporary supply chain challenges, leading to extended execution timelines. However, it is temporary in nature, and once the supply chain constraint normalizes, the backlog, which is currently extended due to this, will be executed and flow into revenues. Owing to such delays in execution timeline, our orders which are supposed to be executed in this quarter have flown to subsequent quarters. Therefore, we have revised revenue guidance from the expected range of INR 6,750 to INR 7,000 crores to now INR 6,325 to INR 6,375 crores. The revision in revenue reflects EBITDA of INR 555 to INR 575 crores and a PAT of INR 220 to INR 230 crores in FY26. During the quarter, the company secured notable order wins, including multiple large data center orders. The company also secured multiple orders from the U.S. public sector, further strengthening its presence in institutional infrastructure projects. Additionally, the company won a significant order from a leading Indian internet company and secured a large order from a prominent bank in Australia. These orders highlight company's expanding global footprint, deep client trust, and growing momentum across priority markets. Overall, the near-term revenue realization has been impacted by industry-wide supply and execution constraints. Our strong order book and deal wins, healthy pipeline, and sustained demand environment reinforces our confidence in growth through FY 2027 and beyond. Further, Ladies and gentlemen, the line for the management has been disconnected. Please stay connected. Meanwhile, we connect the management. Thank you. Ladies and gentlemen, we have connected the management to the conference call. Thank you for your patience. Hi. Apologies for this again. Further, on the strategic front, we are pleased to announce that Black Box has signed a definitive agreement to acquire 2S Inovações Tecnológicas, a leading Brazilian IT infrastructure and cybersecurity integrator and a Cisco partner, subject to certain consents and approvals. With over 30 years of experience, 2S serves 650-odd customers across enterprise networking, cloud cybersecurity, and managed services, backed by advanced networking and data center and collaborative technology certifications. The acquisition scales Black Box presence in Brazil, largest growing market in Latin America, and is expected to add INR 500 crores of revenues in FY 2027. The transaction is expected to close by end of current fiscal year. This aligns with our strategy to grow the business to $2 billion by fiscal 2029. With that, I would now like to hand over the call to our CFO, Mr. Deepak Bansal, who will take you through the financial performance. Over to you. Okay. Thank you, Sanjeev, for the detailed business overview, and good morning, everyone. I will now take you through our financial performance for Quarter 3 and the first nine months of FY26. Starting with revenue performance. Revenue for Quarter 3 FY26 stood at INR 1,660 crores, registering growth of 11% year-on-year and 5% quarter-on-quarter. For the first nine months of FY26, total revenue stood at INR 4,631 crore, which is a growth of 5% year-on-year. Looking forward, growing order book, enhanced pipeline visibility, strengthened execution momentum, and regional expansion are expected to drive sustained growth in the quarters ahead. Moving to profitability, EBITDA for Quarter 3 FY26 stood at INR 147 crore, representing growth of 10% year-on-year and 3% quarter-on-quarter. EBITDA margins remained stable at 8.9% during the quarter, despite higher employee related costs on account of investment in go-to market talent. Better fixed cost absorption and a balanced business mix helped sustaining the margins. For the first nine months of FY20- Ladies and gentlemen, the line for Deepak sir has been disconnected. Please stay connected. Meanwhile, I connect him. Ladies and gentlemen, the line for the management is being reconnected. Deepak sir, please proceed. Thank you. Yeah. For the first nine months of FY26, EBITDA stood at INR 406 crores, reflecting year-on-year growth of 6%, with margins at 8.8%. Looking ahead, we will continue focus on disciplined cost management, pricing discipline, and continuously optimizing our product mix. With ongoing operational efficiency and cost optimization initiatives, there remains further potential for incremental margin expansion as strategic priorities continue to execute in the quarters ahead. Profit after tax for Quarter 3 FY26 stood at INR 50 crores, while PAT for nine months stood at INR 153 crores. PAT during the period was primarily impacted by a one-time exceptional charge of approximately INR 6 crore relating to changes in employee benefit provisions arising from the implementation of the new labor code. Excluding this impact, underlying profitability trends remain stable. As revenue growth accelerates, PAT expansion is expected to outpace top line growth, driven by margin normalization, improved revenue quality, and greater contribution from high value opportunities. As highlighted by Mr. Sanjiv Verma earlier, the company continued to witness strong order momentum during Q3 with order bookings of $232 million. The total order backlog stands at $601 million as of December 2025. Based on the current order flow trajectory, we expect to significantly exceed our earlier backlog target of $700 million and cross $800 million by end of March 2026. Supported by this strong momentum, we remain well positioned to deliver our full year FY26 order booking target of $1 billion. To conclude, strong order wins, an expanding backlog, proven execution capabilities, deepening client relationships, and a healthy pipeline continue to reinforce our growth outlook. As temporary customer level delays normalize and project execution progresses, the revenue is expected to flow into FY27, strengthening our confidence in delivering an even stronger performance in the coming year. The proposed acquisition of 2S in Brazil represents disciplined and strategically aligned capital allocation that enhances both our growth and profitability profile. We are expecting to add around INR 500 crores of revenue in FY27 and expect to complete integration and synergy within 90 days of closing. This acquisition strengthens our long term shareholder value while our balance sheet remains well positioned to support disciplined organic and inorganic growth. With that, we would now like to open the floor for questions. Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of CA Garvit Goel from Screen Alpha. Please proceed. Hi, am I audible? Yes, you are audible. Please proceed. Good morning, sir. First question is on the order book. We are having around INR 5,400 crore order book as of today, and we are guiding for INR 7,200 crore order book as on FY 2026 end. This is a huge gap, sir, because a part of this order book which we are having right now will get executed in Q4 also. So what is giving you the confidence of getting these big orders, sir? Because almost 1 and a half months are already gone, and you have not made any order receipt filing as well. Is it like we are adding the order book of newly acquired company in our projection? Hello? Sanjeev sir. Okay. So I think, Sanjeev. Looks like Sanjeev is not audible. Yeah. Oh, okay. I am here. Deepu will take it, I think. Yeah. I am sorry. Yeah. I think this was okay. So I will just answer that. So first of all, no, we are not taking the order book from newly acquired company, point number one. Secondly, This call is now being recorded. Am I audible? Yes, sir. You are audible. Can you repeat, sir? Can you repeat? I think I missed that. Okay, I will just repeat that. I said, answer to the first question is, are we taking the order book for a newly acquired business? Answer is no. The second is we report order book backlogs, booking and backlog only at the end of the quarter. You have a current backlog. What we can derive from that is we are expecting a very large order booking in quarter four, which is currently in progress. Order books up until now, or ones that will be booked, are not reported in general. It will be reported when we close the quarter. Our confidence for being able to meet our $1 billion order booking is very high. Therefore, the order booking for quarter four is going to be significant to be able to give us the backlog that we are expecting now to move from an earlier estimate of $700 million to $800 million. Clearly we are in the fray to win some very large contracts in quarter four. Can you put some more color on that? What are those areas, and maybe we have not booked yet, but how much in first one and a half months we are at advanced stage for? We are at a very advanced stage. A large part of the order is infrastructure, including very large data center projects from hyperscaler, including order booking for very large infrastructure airport projects. So fairly large, both from a long-term annuity perspective and also large projects. Upward of $350 million is expected in the book to be able to get to what you are asking from a backlog perspective. And we are well on track. So if these orders are very large orders, is it possible that there can be some delays, maybe on account of any procedural delays, or are you seeing any kind of difficulties in closing these order books by FY 2026 end? No. As I said, as I repeated earlier, we expect to close the FY 2026 with order booking of $1 billion. We will be having a robust quarter four to deliver that number and open the backlog. Understood, sir. Regarding the new acquisition, while you mentioned about the top line, what are the operating margins of that company, sir, and what are the debt levels do we have? Deepu, would you take that? Yeah. The company which we are acquiring in Brazil, which is 2S Inovações Tecnológicas, that company, we will be adding close to around INR 500 crores of the revenues out of it in FY 2027. We are expecting to generate EBITDA run rate of around INR 50 crores post-integration and synergies, and we are expecting integration and synergies to be done in the 90 days of closing. What is the second part of your question? Current debt levels in the company, sir. There is no debt in the company. We are acquiring company at the zero debt, zero cash levels. What are the net margins, sir? Net profit they made on INR 500 at top line. They make close to around 45 crores right now, but with the synergies and all, we are looking to make 50 crores EBITDA run rate next year on that. No, no, I am asking about the net profit, sir. Net profit, because there is no debt and all those things. Because they would have made earlier some net profit, but from our perspective, we look at the EBITDA when we are acquiring the company, because we are not acquiring anything else below the EBITDA, because there is no depreciation and the tax is also, they have some carry forward losses and all those things. So to start with, they will not have any loss. So we have to calculate, obviously, based on the opening balance sheet when we acquire them fully, that what is going to be the tax carry forward and all those things. But right now, we are acquiring it basis the EBITDA. And the acquisition will take obviously end of this quarter to get closed. Understood. And one last question regarding the delays in the supply chain that you highlighted in the PPT. Can you put some more color on it? Exactly what is the issue? How is it impacting Black Box exactly? And were we not aware of this issue in the last quarter? Because in last quarter, we were very much confident regarding execution and reporting the profitability growth from Q3 onwards, and then suddenly this happened. You also mentioned that we will be executing the orders that we are currently having. I think, yes. the orders in FY 2027. Are you seeing these supply chain issues getting resolved now? Do you believe that or do you believe that this will continue for two quarters from here? I will take that. Okay. I think, some of the activities specifically in infrastructure projects, AI-led projects, more specifically data center, has extremely heightened up. As we speak, we support some of the Mag 7, the Magnificent 7 customers in the U.S. with large order pipeline, already won, and in the process of winning, which they already answered. If you are following the recent trends, specifically for connectivity and infrastructure, more specifically for fiber, there has been a tremendous demand for fiber, and there is a queue to be able to do that. More recently, one of the hyperscalers announced a very large investment, interestingly, in a fiber company, close to $6 billion, to secure their fiber needs to build data centers. We support such customers. Some of these things are unpredictable and not really timed, because the surge of demand has been extremely high. We expect that we have already passed through that, but will this continue? If the demand continues to rise the way it is, there is a constraint specifically for connectivity infrastructure, network infrastructure, more specifically fiber and cables, which is required. We are a services company. We require to be on a site to provide our technical services and deployment if there are materials on site. There has been a shortage of that. If you look at the public domain, more recently, it is in the domain that there has been all of a sudden a humongous surge. That is the reason. We expect this to gradually ease out. We have already lost a quarter, as I said, $40 million-$50 million of backlogs that have been burned. But we expect as we get into fiscal 2027, a project business is not a quarter-on-quarter business. But we are turning it into an annuity mode business with our pipeline. We expect with our pipeline and our order book being strong, we should catch it up over the course of the next fiscal year. Therefore, our guidance and our confidence for the next fiscal year, starting with a very good order backlog, gives us confidence that we continue to grow organically in a significant manner. So when you say these things are getting normalized, is it like Q4 will also be getting impacted because of this? Is that understanding correct? The Q4 already we have baked it in the guidance at this time. Right. What about Q1 next year? When you say gradually this will get resolved, what is the correct interpretation of this slide? We will be giving a guidance for the full year after the quarter ends. We will have a better view when we give our guidance for the next fiscal year. Okay, sir. But as of now, opening up a very strong order book is a positive sign for us to be entering into fiscal 2027. Understood. I join back the queue, sir. Thank you very much. Thank you. Thank you. The next question is from the line of Jyoti Singh from Arihant Capital Markets Limited. Please proceed. Yeah. Thank you for the opportunity. Sir, just wanted to understand, because of the delay of order, we have revised our guidance. Similarly, few of our peers, they are also facing same kind of issues. Is there an industry issue that is going on, or what is the main issue, and when we will be seeing this order will be coming back? After this, we also have revised our margin guidance on a slightly lower side. So when we are seeing those coming back, and apart from this, we have discussed on the acquisition side. So what is the acquisition multiple that we are seeing on our EV/EBITDA or EV/sales? Also, like you talked about on the debt side, is this deal debt-funded or internal accrual funded? Okay. I will take the first part, and I will give it to Deepak to take the second part for funding and EV/EBITDA for the acquisition part. I think that in general, like you said, there has been a positive sign with respect to hyperactivity for projects which are AI-led data center infrastructure. Also AI-led infrastructure in other large manufacturing plants or airport infrastructure, which is where Black Box focuses on. We are a big infrastructure company. We believe this is the era for that. I think the anticipated hyperactivity has been more than what we had thought. There has been a lag pertaining to supplying those materials or products required to build the infrastructure. This is a trend across the industry, specifically North America, because most of the activity for that is currently actually happening in North America. Other markets, of course, are picking up and are announcing projects, but they are still in the conceptual stage. Our current focus was first to build our order book pipeline, ability to win large contracts, ability to build the relationships. I think we have put up a dedicated team over the last one year to do that, and that result is showing in our order book. We expect as we move forward, that we should be able to burn and build this order book in a significant manner, providing us growth as we go forward. This is an industry-wide phenomenon of hyperactivity. We are first capturing our space in that, getting more momentum, more sites. These are very complex large projects. Our right to win has improved. Therefore, we are winning. We will focus on execution at this time. We should be able to navigate that with our customers as you move forward in the quarters ahead. Vishak, on the acquisition? Yeah. On the acquisition side, I think you asked about what is the value we are paying, and all those things. We will be paying close to around INR 275 crores at closing, and this is subject to some working capital adjustments. Then there is additional deferred payments, including earn-outs linked to the performance, which we will pay over the next two years. Roughly, let's say, we will be making around INR 50 crores of the EBITDA from this. From that perspective, we will be paying at closing close to around 5.5x at closing. Then on the earn-outs and the performance and all those things, at the peak level, if everything, let's say, goes well and all the earn-outs and everything gets accrued, including all the deferred payments, then we will be paying another INR 100 crores for that. That is subject to, obviously, the performance, and that will be payable in the next two years timeline, not at the closing. Then this acquisition of INR 275 crores, what we have to pay, we will be funding it through a mix of internal accruals and debt. We have already told earlier also that we believe in putting our capital prudently. Our ROE and ROCE, we want to be 25%-30% type of range. We don't want to put capital where we don't generate those type of ROE, and that is where the internal accruals and the debt mix will be accordingly. We will use it prudently to pay this INR 275 crores. Okay. Thank you so much, sir. Sir, just wanted to understand, this time our trade receivable has increased INR 674 crores. So what kind of DSO we are seeing going forward and currently compared to FY 2025? You are saying September financials? That's what you're looking at? Yes, sir. Yes, yes. You are saying on September, the receivables are at 674 crores because what has also happened is that between the March quarter and the September quarter, we had the growth. We have some of the invoicing, there is 2 months which happens in our business in the last month of the quarter, which has happened in the month of September because of some of the orders execution happened, and the invoicing happens depending on the OEM supplies and all those things. Because of that, this thing occurred. But all these receivables are now come into the same level as soon as because we realized our DSO, normal DSO is close to around 55-60 days. That is our DSO. That will come to the normal level when we look at, let us say, now or at any other period. Okay, sure. Thank you so much. Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. I repeat, participants who wish to ask a question may press star and one now. Thank you. The next question is from the line of Vivek, an individual investor. Please proceed. Hi, Sanjiv. Thank you for the opportunity. Sanjiv, we have constantly missed on our top-line guidance, and even in this quarter, we have only booked order book to the extent of about $230 million. What gives us the confidence that we will hit a $350 million run rate? Either we are not seeing things clearly on the ground or we are not being candid in our communication with the street. I am just confused as to which one of it is it. My second question, on your long-term guidance of $2 billion, that is a tall ask. Even if I consider FY 2030, which you have moved from FY 2029 to FY 2030, 16 quarters you will have to triple your revenue run rate from about 1,700 crores right now to 2,500 crores. I mean, I cannot square the math. Can you just help me with that? Okay. I think the first thing, trying to the question is, I think we have guided a booking of $1 billion for the year, and we are holding on to that. That puts us in quarter 4 for a significant quarter. Clearly, we are halfway through the quarter and another half to go. The fact that we are saying we will book $1 billion, so we are auditing the bag significantly. A project won specifically for data center, $700 million, and more to come. These order books take time. Gradually, if you see for data center infrastructure, we had earlier told you the first quarter we are revamping the team. We brought in a new leader, Sean Maguire, an entire team. Progressively, each quarter, we have been moving up large projects which runs several hundred million for hyperscalers and Mag 7, are very complex, and there were only really three players. We are at more sites than before and more companies than before. Earlier, as you know, we had Meta as a large customer, we continue to have that. Those are in the bag at this time. The way the order book happens is from a letter of intent to low-level design to limited authorization to proceed to finally a contract. Because we are open projects, greenfield, massive being spent billions of dollars. First you are identified, allocated, then you engage, then contracted. That is how it happens. It takes a little bit of a time there. I think we are almost to the five and seven four. We are certain for $1 billion. Now, unfortunately, there were expectations we had to burn a little bit more, $40 million-$50 million more. That didn't happen, specifically in infrastructure projects and data center. That is back-ended, and therefore the opening backlog is going to increase. That fundamentally, as I told earlier on the call, if you look around and in the public domain, one of the largest fiber sellers actually invested in a fiber company to get the fibers on demand because the demand is enough. Now, we do these fiber projects to connect a large scale data center. So we are at the other end waiting to be able for the owner or customer to supply the material because we don't supply the material, we do the design implementation. So we are confident to your question of meeting a billion-dollar goal. An opening backlog which was supposed to be closer to $700 million and would have possibly hit our goal for revenues, has slipped by $50 million-$60 million, and that's what I quoted earlier. So now from a perspective of $2 billion, we have very clear paths of going there. One, of course, from organic perspective, we expect from if your backlog is going to open up, $700 million more getting into fiscal 2027, we should be able to drive a double-digit growth with double digit of 10%-15% surely over the next year or so. Because the backlog is going up significantly and we take half of that as backlog to burn. That gives us anyway a 10%-15% growth from organic perspective. We expect this momentum we just started in the data center infrastructure projects and other large-scale projects. This will continue to add significant large value projects as we move forward into the next year. That's on the organic side. Therefore, around a $300 million-$400 million gives an average of 10% growth anyway for the next seven years' time and that's what we're focused on, large projects. It's complex, very few players. We also expect this to flip our investments. We are looking at projects now in Europe as well at the verge of winning. So those will inflate. So we expect the order book that we're opening up at $800 million, booking a billion now to book much more getting into 2027 and beyond. So that's the organic side. Then again, if you look at that should take us to close to $1.2 billion-$1.3 billion. We have stated we have an inorganic theme. We just started with that with a small acquisition of INR 500 crores as you heard today. But we'll drive that pipeline in a systemic manner. So we just called out being prudent because we don't want to be kind of emotional about economics and lose the ROE and the ROCE. We'll focus on that so it takes time. But we have a significant pipeline as well on that to drive that momentum because we believe at scale our PAT conversion is going to improve significantly. So it'll start to add up into our PAT as we go in 2027, 2028 and beyond. So we have a team focused on that as well. So we just had one of them announced and we'll continue to focus on that. Between organic, 10%-15% through a very strong pipeline, order book, infrastructure being done, Americas possibly getting into U.K. and Europe now. We just put up a leader in Europe, which we announced India and APAC. We just announced a leader, Mr. Samir Patel from the public domain, who joined us. I think we have clear paths from organic perspective. Inorganic also we will drive reasonably through our prudent capital deployment. We expect as we move forward, we will not increase our leverage more than we need to do. As free cash is starting to pump into 2027, 2028, it will be accretive for us. So we should be able to drive significant momentum in acquisitions as well. A combination of both, organic through our pipeline, large infrastructure project wins, and our inorganic that we are also driving now. We believe we have a clear path to move forward towards our aspirational goal of $2 billion. Sanjeev, just to labor on that point again, we guided for about 15% growth starting this year. Even now in your commentary you have mentioned a 10% to 15% growth. I mean, if we have missed orders this year, ideally next year we should be growing much higher, right? I mean, if that order has just been deferred to the next year, shouldn't we be growing about 20% next year? On the back of the acquisition, your overall revenue ideally should be in the range of 20% to 25%. I mean, just 10% to 12%, I do not think- If you take- You are right. It gets us to $1.2 billion. We are at a $700 million run rate. I mean, if we end the year at 6,300 crores, that is a $700 million. For us to move from 700 to 1.2 in four years' time, that will take a lot higher than just a 10%-15% CAGR. At some point the maths has to catch up. Your growth rate cannot just stagnate at 10%-12%, while previous year you have not delivered any revenue growth. Yeah. I think you are right. I think, whether it is growth a little more than 15% or 16%. I think the first fundamental goal for us has been to have enough backlog to be able to burn that. I agree. I think, we possibly will do more this time. But I think what I am alluding to is our clear path of driving organic through large scale projects in order books. If you look at the order book growth of 60% compared to opening balance of last year, we are taking a currently at the back of the environment that we burn at whatever rate we are expecting. Could we burn more of the $300 million-$400 million that is lying extra in our order book than when we opened up last year? It is a possibility, right? But considering we just quoted about some constraints and missed $40 million-$50 million worth of revenues. I think we took that point. But will that improve and a backlog of $300 million-$400 million should drive 15%-20% growth or more? I agree. But we are taking a view. We will guide it at the beginning of the quarter, sorry, beginning of fiscal year, and that is what I said in the earlier call. We will guide as we get a view of how we are looking. Closing the year first pushing a billion, opening up a $700 million, and then guide as to what we believe we can burn and the possibility add that we could possibly be doing organic more than 15% from that perspective. Sanjeev, for us to get to $2 billion, we cannot just rely on the data center, but that is a project business, it is a one-time business, and then we have to replenish the order book completely. What is happening on the managed services and the maintenance contract side? Is that pie growing? For us to get to $2 billion, we cannot just rely, because then that will require us to replenish a couple of hundred million dollars every year, which might get tough. On the data center part, we have been calling out massive activity, but we have barely scratched the surface. I mean, these companies have spent a couple of trillion dollars already, and we have barely acquired the orders and we are still not executed. I mean, I am just trying to piece the. Can you just give me a broad macro view on how the sales teams are performing, not just on the data center side, but also on the other side? This order booking of about $230 million every quarter will not lead us to $2 billion. We will have to get to possibly a $350 million to $400 million run rate every quarter. Can we just speak to that, please? Yeah. First of all, the $2 billion, I think I said $700 million is supposed to be in organic. Even if you look at $1.3 billion, right? I think from a current backlog perspective, we are covered well above about 60% as we start the quarter or start the year. That is where we are. To answer your earlier question, I think although we are seeing more bump coming in the project side, which gives us some annuity business as well. It is not only a project. We are doing an annuity for a hyperscaler in data centers in Europe for several years, running into several million dollars. That will be the project for $20 million, $30 million plus. It also gives us annuity, not high, 10%-15%. If we do a $100 million project, we do get $10 million, $15 million of annuity at a much better margin going forward. Having said that, we still have a good over 50%, 60% of our business, to your point, as you rightly said, from a non-data center business. Which includes our bank business, which includes very large business in our airports, which is multi-year managed services for airports like Miami, which runs into tens of millions of dollars or Newark Airport. We are expecting large projects and annuity and managed services. We do for a very large healthcare, $220 million worth of managed services. We have multi like that. The answer is, yes, we will have both. Although if you look at our table, the projects bumps up more in a certain quarter because it is not really a quarter-on-quarter business. You can get a very large order which will burn over a period of time. We are also focused. A large part of the team is enterprise-focused on non-data center, similar business, connectivity, networking, workplace modernization, and so on and so forth. Pretty predictable, large scale. We are expecting large-scale refresh in wireless network infrastructure. That will continue to happen, run by Dev Venkat that runs it through a large team. Data center, of course, we require a smaller team. We do not require 50 people, 100 people from a sales standpoint. There are only five hyperscalers and maybe 10 multi-tenant guys. We have a smaller team, but high-performance team that was put in place in FY 2026, as I told earlier, with Sean Maguire leading that with 30 years experience from that perspective. We are not leading away and only focusing on data center. We're just saying data center is hyperactive. There are very few large-scale complex project execution. It's time-taking, but a pipeline and order book of large nature will burn over a period of time for next 2, 3, 4 years' time. When you do a project of $200 million, it takes 2 and a half years to burn. Of course, we expected to win another 200 and 400. But the roadmap for that, at least for the foreseeable future, is there. And I think, we are focused on working on that. We're moving to Europe. We've not even come to India at this time, and possibly at some point we will look at whether we want to participate in some of these things in India. When India actually starts to build or deliver those projects. Currently, it's at conceptual MOU kind of a stage. Both the tracks, non-data center and data center, where we are wanting to turn a data center pipeline into a project, into a more annuity perpetual business with large pipeline. At some portion of that, we'll turn into managed services for what we call Day-2 operations. So we are looking at both, and we are driving both from that perspective. Sanjeev, just one last question. Since we got the new head of GSI into the company, I mean, the order booking for the last three quarters has basically been around the $200, $230 million range. I appreciate that once you've set the team in place and with the new go-to market strategy, I mean, at some point the sales team has to fire. So ideally next year onwards, what should be the quarterly order booking? And will that be lumpy nature? Should we be moving to a different orbit from over a $250, $70 million run to much higher? Because that math doesn't change, right? We can't be at a $250, $230 million run rate and expect to hit a $1.2 billion target in the next three to four years. I agree. So I think you're right. So we will see normal growth in the enterprise sector, which is Dev's business and of course Sean, which is more 15%-30%. We will show hyper growth. So if you looked, we had $100 million booking or $200 million booking in data center the previous year. We're expecting 400 or 600, which is multi-time jump because it will not go the same way. A combination of both. Our goal next year moving into should be upward of 300, 350 every quarter going forward. We are currently at 230, 250. Quarter four, of course, will be much larger, and we'll report when we get there. And we have an ability now to be able to see that funnel culminating. Having said that, the enterprise kind of business supporting our bank, first of all, we have to keep those customers going, and then win new customers. We still expect 12, 15, 20, depending which quarter we land up. But I think we're expecting a significant bump quarter-on-quarter going forward, super similar types, $700 million in the data center infrastructure business. It's still going to have the business, 40% of the business, but that didn't exist earlier. So we were doing 230, 180, 200, 250, whatever its number was. I mean So we, as you're right, we're expecting it to turn. I appreciate that. Just one, have we bitten more than we can chew as far as our $2 billion target is concerned? I appreciate that even on the inorganic part, with a $50 million acquisition, we still got to cover Sorry to interrupt. Sorry to interrupt, sir. Vivek, sir, can we request All right. I will join back. No worries. Thank you. Thank you. Before we take the next participant, anyone who wishes to ask a question may press star and one on their touchtone telephone. I repeat, to ask a question, please press star and one now. The next question is from the line of Disha from Sapphire Capital. Please proceed. Yeah. Hello, sir. Am I audible? Yes, Disha, you are audible. Please proceed. Yes. Okay. Firstly, on this current order book that we have, what sort of execution timeline do we see here? If you can repeat the question, please, I think your voice just cracked. The execution timeline for the order book. Okay. I think we have several kind of order books. The order books includes annuity order books that are recognized ratably over a period of time. If you look at our investor presentation, you will see that. Projects backlogs run between 9 months to 24 months. For enterprise projects, they usually close within a year. For large scale infrastructure projects for data centers, depending on the size, that might last several years, maybe 2 years or more. On average, if you look at it, I think you look at an average of one year, some last for 3 months, 6 months, 9 months, and 2 years' time. Large hyperscaler projects run over several years. Enterprise projects usually run between 3 months to 6 months time. Okay. Got it. Annuity managed services are ratably recognized every month, every quarter as per accounting rule. Yeah. Just following up on what the previous participant asked, if you are targeting a $2 billion by 2030, and if you close this year by around, say, the upper end of our guidance, around INR 6,350 crores, that would mean that we need a CAGR of around 25% to 50%, but we are only just targeting, I think you mentioned, 12% to 15% growth. What is the sort of glide path that you see? No. We are targeting a CAGR of 30%-35%, including inorganic. Yeah to be able to get to our goal of $2 billion. That is what we are looking at. We are looking at 700, 730 somewhere where the number lies with respect to our inorganic goal. We just started that process, as we have called in a smaller way. But we have larger ambitions on that as well. Having said that, a larger part of the company is focused on organic growth, which includes our enterprise business, and which will also include our data center infrastructure business. And we feel confident, first things first, to be able to close the year with respect to what we have guided for order booking. Open up a strong backlog, continue to push and drive that organic growth as we primarily look for inorganic opportunities. A combination of those, CAGR of 30% or more, in the north sort of that, should lead us to where we want to go to, $2 billion, is what our goal is. Yeah. A CAGR of 30% will lead to that. Just for the acquisition that we have done, what sort of growth do we see for this company? Vivek, do you want to take that or you want to pass it on? Yes. This company has grown at a CAGR of close to around 20% from last year to this year also in 2025 tentative numbers. We are expecting at least 12%-15% growth because Brazil is a very high growth market. We are expecting that FY 2027, we should add 500, and then from FY 2028 onwards, we should grow at least at bare minimum at 20% levels for this company. Okay. What is this rationale for this acquisition, and what sort of synergies do we see here? I will take that. So the Our footprint in Yeah. Our footprint currently in Brazil Yeah, go on is fairly small with over $450 million. The company is a fairly large enterprise-focused network integrator, a large Cisco partner, very multi clients adjacent to what we do. We largely do connectivity and heavy infrastructure, so we can cross sell. We expect sales momentum in that region to improve collectively as we move forward. By cross sell, the second, of course, the company was only present in LATAM, largely Brazil, but has marquee customers, good relationships, with no ability to serve them overseas, and they were serving it through some partners and otherwise. So with Black Box presence in Americas or Europe or otherwise, we expect some flow of business coming to other markets as well at the back of this acquisition. Third, a seat on the table with us with respect to networking conversation, more specifically from a Cisco standpoint, is much better to have the relationship which could be accretive for our margin going forward. In combination, I think the rationale was to get to scale, because if you're not having scale, if you're doing $12 million, $15 million in the market, you don't have a seat on the table to large customer to stock. So we get a seat on the table. We also get an ability to cross-leverage each other in that geography and also get a leverage to, ability to serve some of 2S's customers in other geographies that they were not serving. So we see a multitude of synergies. As we move forward with integration over 90 days, the first thing is to get into our run rate and then look at combined strength of one plus one to see how we can make it more than two. Okay. Just last question on the margins. I think this time, so obviously because the revenue decline and the supply chain issues have reduced the guidance. Going ahead with this acquisition as well, do we see the margin trajectory? We continue to hold up to our margin guidance as well as to move to 10%. We are at nine-ish, 9.99%. This acquisition or otherwise as well, that scale we believe will be margin accretive, both from an EBITDA perspective and of course, much better from a PAT perspective. We expect our PAT CAGR to be significantly higher as we move towards growth of revenue, our EBITDA CAGR to be also significantly higher. Our EBITDA to PAT conversion will significantly improve at scale because we do not expect that to be linear. Therefore, accretive from that perspective as we get into 2027, 2028 and beyond. So 10% sort of EBITDA margins can we target for a run rate? That was the targeting, yes. Got it. Thank you. That is it from my side. Thank you. Thank you. The next question is from the line of Rohan Nagpal from Helios Capital Management. Please proceed. Thanks. Thank you. My question. First question I had is, this is the seventh quarter in which we have been recording exceptional expenses on provision for rents and foreclosure fees. How much longer do we expect to record these exceptional items? Rohan, let us say because we are operating multi geographies, we thought that technically FY 2026 should be the last one. But right now, I think from a visibility perspective, I think that at least another two quarters in FY 2027, we should have these exceptional items. But the exceptional expenses should little bit go down because we continue to pivot and let us say identify the opportunities to sever the people wherever we think that it is not required or whatever and that is what it comes into it. With respect to the rent and all those things, it is more like, let us say what we are also doing now is that we are not recognizing the overall rent restructuring into one quarter because as per the GAAP, if I have done a rent restructuring and some consolidation or whatever, I need to recognize during the period of the term of the contract as per the lease accounting. That is why it is coming like that. The back rent restructuring is a lower amount as compared to the severance. I am expecting severance amount to come down drastically in going three quarters. But I am expecting that next two or three quarters still the exceptional items will be there. Okay. Awesome. Thanks for that. My second question is on demand. We already have a long-standing relationship with one of the large hyperscalers that has committed to a significant amount of CapEx this year. We have a path to benefiting from some of that CapEx. From some of the other hyperscalers that have announced even larger amounts of CapEx, how exactly does the sales cycle work in this situation if someone's announced, say, $200 billion of CapEx this year? Is there any way in which we have an opportunity to participate or service some of that spend, or will it take a long, a significant part of FY26 for us, and then we have to effectively, we get to service some of that spend in the next year if the business development efforts are successful? I just want to get a sense of the dynamics at play over here. I think Sanjeev has dropped. I can take this. Basically, we are dealing with, let's say, one large customer on a hyperscaler, but then we have the other hyperscalers, like we are speaking with two more large hyperscalers who have announced the large project, and also one of the joint venture between the hyperscaler and the large, let's say, the GPT company. We are dealing with them. The sales cycle typically on this whole data center thing is more like, I will say, 3 to 9 months type of period from a sales cycle. The decision making is happening. Most of the hyperscalers, it is between hyperscalers and also the general contractors who are getting involved. The decision making happens between them. There are lot of round of interviews, and then there are safety practices, and then there is a prior experience and all those things. Most of the hyperscalers, it is more like a technical discussion in all these rounds. The financial discussion is not, let's say, not much. We have to obviously give the financial models and all those things, and in terms of margin and all, but it is more like a discussion type of thing. Accordingly they allocate. Let's say the selection or let's say the allotment of the project is more happening on the technical parameters. The financial parameters for everybody remains almost in the same ballpark numbers. Understood. On the significant surge in CapEx, except the hyperscaler that is already a customer, we will not be able to service or participate in as much of that this year. It would primarily be a 2027 story. Is that a fair understanding? No, I believe I will take that. We have to be prudent as to where we want to deploy our capital and our resources. We are focused on six specific markets in America where we focus with this sector. U.S. has 50 states. Data centers getting built in 50 states. This is a localized works. Obviously, you cannot have hundreds of resources parked in every places. It is just not physically possible. Therefore, you choose what you can deliver best, because these are very complex, large scale of a mighty scale projects. If you do not do well, the chances of getting a repeat becomes low. You can also have a cost overrun. You can have delays. So you choose your battle accordingly. We have over the last several quarters reorganized ourselves to where we will focus on. Therefore, at those conversations, in my meetings with senior management of these hyperscalers or other multi-tenant, we are clear as to where we are, and we have the strength. We do not want to be just spraying and praying. That is just one way to do it. Too much opportunity means nothing because you will be bidding for too many things and winning peanuts. We would rather be focused on, as Deepa called out, where we are allocated more on technical strength, resources, capability, safety, and so on and so forth. And the commercial discussion negotiations are fairly understood fairly well now. It is market-driven. Labor rates, your overheads, your margins, fairly transparently because it is not a fixed cost, fixed scope project. The project changes on the fly because it is a barren land built for 2 gigawatts. I think it is a different kind of project. There is an entry barrier. Anybody can come and bid for those projects. It is a long lead time, and if you come out a winner, you would be here for long term. That is what we are trying to build. Okay. Understood. Just last question from my end. We discussed supply chain bottlenecks. There seem to be a certain amount of social and political resistance to the development of data centers in certain states. Your certain bill looking at restricting the build-out. Is that impacting us in any way or even at a business development standpoint at this point? No, of course, there are certain specific states where there's more hyperactivity and so on and so forth, but I don't think we are affected by that. As I told earlier, we are focused around where our winnability is higher, focused on our win ratios, stuff like that. We're not affected by that. Okay. That's it from my end. Thank you very much. Thank you. Ladies and gentlemen, due to time constraints, that was the last question for today. I now hand over the conference to management for closing comments. Over to you, sir. Thank you, everybody, for joining the call. I hope we have been able to address all your queries. For any further information, kindly get in touch with Purvesh Parekh, our Head of Investor Relations, or Strategic Growth Advisors, our investor relations advisors. Thank you so much. Thank you. Thank you. On behalf of Black Box Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.