Black Box Q1 FY27 Results (NSE: BBOX)
Signal: Margin expansion
The read
The operating inflection is genuine: revenue growth accelerated to +23.9% YoY from +9.4% in Q4FY26 and EBITDA margin expanded to 9.5% from 8.0% in Q1FY26, with EBITDA growth of +38.7% versus revenue growth of +23.9%; nevertheless, ₹18.91 crore of exceptional expenses capped PAT growth at +17.9%, and the loss-making technology product solutions segment and ₹2.40 crore standalone loss remain thesis risks.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,718.5 Cr | 23.9% | 1.6% |
| EBIT | ₹128.04 Cr | 40.1% | |
| Net profit | ₹55.92 Cr | 17.9% | |
| EPS | ₹3.15 | 12.5% | |
| EBIT margin | 9.5% |
P&L walk
Consolidated revenue reached ₹1718.50 crore, +23.9% YoY and +1.6% QoQ, with EBITDA of ₹163.63 crore, +38.7% YoY, lifting margin to 9.5%; EBIT grew +40.1% to ₹128.04 crore, but PAT rose only +17.9% to ₹55.92 crore after ₹18.91 crore of exceptional expenses.
Segments
System integration drove the group with ₹1412.54 crore revenue and ₹138.57 crore result, while technology product solutions grew revenue +41.6% YoY to ₹267.06 crore but remained loss-making at -₹14.11 crore; the standalone parent also reported a ₹2.40 crore loss versus consolidated PAT of ₹55.92 crore.
Key positives
- Consolidated revenue of ₹1718.50 crore grew +23.9% YoY, accelerating from +9.4% in Q4FY26, with technology product solutions revenue up +41.6% to ₹267.06 crore.
- EBITDA rose +38.7% YoY to ₹163.63 crore versus revenue growth of +23.9%, a +14.8 percentage-point growth gap, while EBITDA margin expanded 150bps YoY to 9.5%.
- Employee benefits expense grew +23.2% YoY and service charges grew +24.6%, broadly tracking revenue while operating margin expanded to 9.5%.
Key concerns
- Technology product solutions remained loss-making at -₹14.11 crore despite +41.6% YoY revenue growth, versus -₹6.28 crore in the year-ago quarter.
- Standalone EBITDA fell 66.9% YoY to ₹1.36 crore and standalone PAT turned to a ₹2.40 crore loss from ₹1.16 crore profit, demonstrating heavy subsidiary dependence.
- Finance costs rose +42.9% YoY to ₹48.00 crore, faster than revenue growth of +23.9%.
- EPS growth of +12.5% trailed PAT growth of +17.9% following the issuance of 103,950 ESOP shares.
Earnings quality: includes an exceptional item
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