Black Box Ltd Unveils Ambitious Growth Strategy Focused on India

New Delhi, Black Box Ltd, Essar's technology arm, has unveiled an ambitious growth strategy centered around India, aiming to establish itself as a strategic partner for global technology companies entering the region.

During its recent investor call, Black Box reported strong Q2 FY25 financial results, posting notable gains in EBITDA and Profit After Tax. The company aims to leverage its expertise in supporting large-scale digital infrastructure projects as global tech firms enter the Indian market.

For Q2 FY25, Black Box recorded a 34 per cent Year-over-Year (YoY) increase in EBITDA to Rs 135 crore, accompanied by a 60 per cent YoY rise in Profit After Tax to Rs 51 crore. These gains reflect robust operational efficiencies, cost optimisation, and high-value solutions.

The company's EBITDA margin improved by 260 basis points YoY to 9.0 per cent, while PAT margins rose by 140 basis points YoY to 3.4 per cent, underscoring Black Box's focus on sustainable profitability.

"We continue to see strong performance across our operations, reflecting our commitment to delivering market-driven solutions and driving operational excellence," said Deepak Kumar Bansal, Executive Director and Global Chief Financial Officer of Black Box Ltd.

India, with its 1.4 billion people and expanding digital economy, presents an enormous opportunity for Black Box. The company is optimistic about capturing substantial growth, particularly as global tech giants and data centre colocation providers seek to enter the market.

"We see immense growth potential in India, which is rapidly becoming a global hub for digital transformation," said Sanjeev Verma, Whole Time Director of Black Box Ltd. "Our strategy is to build on our success in North America and tailor our approach to India's unique needs."

Black Box's India-focused strategy focuses on vertical-specific, high-impact solutions in AI, cloud, and digital infrastructure. The company aims to reach a $2 billion revenue target over the next four years, prioritising its top 300 customers with high technology spend and growth potential.

Looking forward, Black Box plans significant investment in talent and an enhanced go-to-market strategy to accelerate its growth in India. The company's deep understanding of global clients' needs, coupled with its local expertise, is expected to drive substantial growth in the Indian market over the next few years.