Record revenue, margin expansion, but PAT growth lagging

Delivered ₹1,718.5 Cr; 23.9% YoY growth (prior Q1 ~₹1,387 Cr)

At 9.3% margin on ₹1,718.5 Cr = ₹159.8 Cr; 38% growth implies prior Q1 ~₹116 Cr

Delivered ₹55.9 Cr; 18% growth implies prior Q1 ~₹47.4 Cr; NPM 3.3%

Delivered 9.3% margin; prior Q1 ~8.4% margin = 90 bps expansion confirmed

New orders US$339M this quarter; backlog claim aligns with gigawatt pipeline described

Mgmt states 'close to a gigawatt by now' executed; US$131M order is gigawatt+ project

US$950M backlog (+83% YoY) now vs prior Q1 (~US$518M), adding US$131M hyperscaler gigawatt+ contract—concrete execution visibility raised.

9.3% margin (Q1 FY27) vs ~8.4% (Q1 FY26), despite scaling talent and training—operating leverage emerging earlier than expected.

US$50M annual revenue acquisition (₹60 Cr in Q1 contribution); added capabilities in networking/cybersecurity/managed services for Latin America expansion.

Same target from prior Capital Markets Day; FY27 guidance of ₹7,800-8,000 Cr now explicit (prior was only FY30 aspiration)—trajectory unchanged.

Organic revenue ₹1,659 Cr (₹60 Cr inorganic from 2S). Cash flow to EBITDA will improve in FY27 vs FY26; major capex for talent/hiring largely done, cycling to positive. Most backlog execution spills to Q3-Q4 and FY28 due to Nov start dates.

Correct. Large multi-year projects start Nov; 24-36 month tenure means significant spill to FY28. FY27 guidance of ₹7,800-8,000 Cr not conservative; sequentially stronger H2 expected. FY28 growth will exceed FY27 growth rate.

Hyperscale growing 25%+; enterprise modest ~10% growth with lag effect. Product/TPS business growing ~20% (scale story). Enterprise growth will follow as hyperscale infrastructure cascades downstream (airport, hospital, bank networks). Focus on 300 strategic customers.

Scale-dependent. Narrowed focus to mission-critical (KVM, Emerald visualization products). Expecting 20% growth FY27; accretive from next year onwards; AI-led products in pipeline.

Goal remains 10%+; Q4 expected to be in that range or higher. Guiding 9.3-9.4% for full year because investing in talent/training for multi-billion backlog execution. At-scale, expect 10% or above.

Low tax due to carryforward operating losses in various geographies. FY27-FY28 expect 10-15% tax rate; normalizes to ~20% thereafter as losses consumed.

Overall AI infra spend $1.6T over 4 years (~$400B/yr average); Black Box capturing very small slice. Seeing speed-up in new project announcements, not slowdown. Presence in multiple hyperscalers, markets, geographies limits concentration. India opportunity not yet tapped. Even if one project delays, macro opportunity massive.

Moat = scale, execution capability, and proven track record (executed ~1 GW by now). Hyperscalers don't award based on price; they need execution at scale, trained resources, ability to mobilize globally. Only India-origin company with this capability. Push rates declining; pull rates rising (customers now invite vs we pitch).

Growth 23-27% vs FY26. Q1 contributed ₹1,718.5 Cr (23.9% of annual at run-rate). Remaining 3Q need average ₹2,027-2,094 Cr (higher than Q1 seasonally weak quarter). Supported by order backlog acceleration.

Full-year margin flat to prior quarter; mgmt targeting 10%+ at scale (via operating leverage as backlog converts). Investment in talent/training offsetting efficiency gains in near-term.

Q4 expected to be 10%+ (higher operating leverage); depends on execution and cost discipline. Gross margins on data center projects described as 'accretive' but not quantified.

Major capex for hiring/training front-loaded in prior years; FY27 capex for people/capability continuing but at lower incremental rate. No specific capex $ guidance provided.

AI infrastructure capex cycle is massive but not infinite. If Google/Meta/MSFT/Amazon moderate spending, Black Box's hyperscaler-dependent revenue (largest segment) is impacted.

Large gigawatt+ orders have 24-36 month tenure; work on US$131M hyperscaler contract starts only November; revenue spills into FY28. If customer-led delays occur, near-term revenue misses guidance.

PAT growth (17.9%) lags revenue growth (23.9%); mgmt investing heavily in talent (targeting 2,000 onboards) and training. If these investments don't translate to operating leverage, margin path to 10% falters.

Hyperscaler-focused (US$1.6T spend) with 300 strategic accounts. New gigawatt order is one hyperscaler; if a single large customer delays or cancels, impact is material.

Product/TPS segment growing revenue (~20% FY27 guidance) but still EBIT-negative. If scale doesn't deliver profitability, it becomes a margin drag.