Major jump in revenue they are expecting is through inorganic growth through acquisitions. However, there Balance sheet doesnt seems to support such exorbidant figures. They dont have such high Cash or investments at hand and carry high debt
As per me, they have to do equity dilution for this growth, which is double edge sward, as universal sustainable growth through acquisition is 50%
I am doubtful of the claims company is making in the current concalls
The sector tailwinds are quite favourable to the company. If you see, it has noticeable presence in US and US data centre implementation is on a roll. Black Box has all noteworthy hyper scalers as its customers, dollar earnings from US due to weaker rupee add to the profit pool.
It’s expansion in high growth country of Brazil through acquisition of 2S Inovações Tecnológicas for ₹275 crore, would further contribute to Q4 results.
It’s likely that the company would exceed the FY 26 guidance of 220-230 Cr as given in the last concall.
A very exhaustive presentation by Black Box today laying out the latest growth plans. Anyone who attended the event in person may elaborate more. The latest alliance with AionOS seems to be another positive trigger in the right direction. The only risk to the investment thesis remains that is when would the AI become a bubble ready to burst. Till then everything seems to be a tailwind driving the company forward. Black Box is more active with update on Black Box | LinkedIn. It would give a better insight into how the company is progressing.
