Black Box eyes scalable growth with data centre and networking tailwinds

Mumbai, June 30 Black Box Ltd, an Essar Group technology arm, aims to double its revenue to USD 2 billion by FY29, supported by a solid order book and growing demand in data centre and enterprise networking segments, the JM Financial Institutional Securities Limited report states.

The company’s net new orders reached USD 218 million (1.22x book to bill), with a total order book climbing to USD 504 million, marking a 7 per cent year-on-year increase.

A healthy pipeline of USD 2.5 billion signals strong growth visibility amid rising global IT spending, projected at USD 5.27 trillion in 2024, the report notes.

Black Box’s verticalized sales approach targets its top 300 global clients -- including Fortune 500 giants such as Meta, Intel, Disney, and Bank of America -- focusing on expanding wallet share in these strategic accounts.

A significant growth lever is its dedicated data centre segment, contributing 17.5 per cent of revenue, with projections to rise to 25 per cent by FY29, implying a CAGR of 42 per cent. This growth is fuelled by hyperscaler capex trends and India’s data centre capacity, which is expected to grow at 25 per cent CAGR over the next five years.

India remains a critical market in Black Box’s expansion strategy, aiming to double the revenues over the next three to four years. With digital infrastructure investments accelerating, the country’s data centre capacity is on track to nearly triple to 2.8GW by 2028, driven by strong demand for cloud, AI, and 5G services.

This positions Black Box to capture significant opportunities in one of the world’s fastest-growing digital ecosystems.

Backed by its expanding order book and scalable growth levers, JM Financial Institutional Securities Limited has assigned a Buy rating to Black Box Ltd, with a target price of Rs 670, indicating a 33 per cent potential upside.

With leadership hiring complete and industry-seasoned teams driving improved deal conversion, Black Box is poised to harness digital infrastructure megatrends, including cloud adoption, AI, cybersecurity, and 5G rollout, to achieve its ambitious growth targets.

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