Economic Landscape
FY 2025 commenced against a backdrop of global economic uncertainty. According to the IMF’s April 2025 forecast, global GDP growth is projected to moderate to 2.8%, down from 3.3% in 2024. Persistent policy uncertainty, rising protectionism, trade disruptions, and demographic shifts have collectively weighed on global business sentiment. While inflation shows early signs of easing, it remains above target in many regions, exerting pressure on input costs and consumer demand.

In contrast, India’s economy remained resilient, achieving GDP growth of 6.5% during the year. This performance was underpinned by robust domestic consumption, focussed public investment, and a rebound in services and exports. Inflation moderation and accommodative monetary policies further supported economic activity. Significantly, India emerged as the world’s fourth-largest economy during FY 2025 – a milestone that underscores its growing global influence.

Financial Performance in FY 2025
Despite macroeconomic challenges and a strategic decision to exit low-value long tail customers, your Company delivered a resilient financial performance.

EBITDA grew by 24% year-on-year to `531 Crore, with margins improving by 210 basis points to 8.9%. This was driven by disciplined execution, improved revenue quality, increased long-term engagement contributions, and a clear focus on profitability.

Profit After Tax (PAT) rose by 49% to `205 Crore, with PAT margins improving by 120 basis points to 3.4%, reflecting stronger margin resilience and operational efficiency.

Strategic Initiatives Driving Long-Term Growth
During FY 2025, your Company implemented several strategic initiatives aimed at driving long-term value creation, the majority of which were executed by Q3. Your Company transitioned to a verticalised go-to-market strategy, better aligning the business with evolving client needs. Your Company also strengthened the leadership team by onboarding experienced talent from leading global system integrators (GSIs), enhancing domain expertise and sales capability. In parallel, your Company intensified its focus on large account strategy to deepen customer engagement and expand wallet share across key clients.

Record Order Wins and a Strengthened Pipeline
These strategic steps contributed to a robust sales pipeline, resulting in record order wins of `1,550 Crore in Q4FY 2025 alone – more than double that of Q3 and the highest quarterly achievement of the fiscal year. Wins include multi-year engagements with hyperscalers, healthcare systems, airports, and academic institutions, many of which are high-value, long-tenure contracts.

Your Company’s managed and professional services business continues to grow steadily, supporting revenue predictability and margin visibility. Additionally, your Company has assessed potential macroeconomic risks, such as tariffs and currently expects minimal impact on the operations.

As of March 31, 2025, the order book stands at US$ 504 million, underpinned by strong execution and improved win rates.

Capitalising on Hyperscaler Investments
According to S&P Global, the top five AI hyperscalers are expected to invest over US$ 1.6 trillion in capital expenditure between 2025 and 2029. Bank of America forecasts AI-related CAPEX will rise 44% year-on-year to US$ 414 billion in 2025. With AI markets projected to grow above 30% annually through 2032, as per various sources, this represents a transformative opportunity for companies like Black Box, whose capabilities are central to building next-gen digital infrastructure.

Doubling Down on India Amid Surging Digital Demand
While the U.S. continues to be your Company’s primary growth engine, driven by scale and advanced technology adoption, India presents a compelling structural opportunity. Despite being the world’s largest consumer of data, India currently has just ~1.3 GW of data centre capacity – far below U.S. levels. The combination of rapid digital adoption, emerging AI use cases, and a pressing infrastructure gap presents a significant long-term opportunity.

Your Company is leveraging its global experience – especially in supporting hyperscaler clients to build leadership in India’s digital infrastructure ecosystem.

Your Company secured a five-year cybersecurity services contract with one of India’s largest municipal corporations, covering 20,000 employees, underscoring heightened demand for secure public-sector IT infrastructure.

Your Company allocated `100 Crore for domestic expansion. Investments will focus on strategic infrastructure sectors such as transportation, logistics and government, with a sharp emphasis on public-sector digitisation. Your Company has also won orders from the telecom sector for 5G rollout by Indian telcos.

Your Company is also scaling up the Bangalore Centre of Excellence, with plans to double its workforce to 1,000 in the next 12 months. Upon completion, this facility will host approximately 25% of Black Box’s global workforce.

With these strategic initiatives and continued momentum, your Company is aiming to double India revenue over the next 3–4 years.

Commitment to ESG
Black Box remains committed to integrating Environmental, Social, and Governance (ESG) principles across its operations. Your Company recognises that sustainable business practices are no longer optional but critical to long-term growth and reputation. Your Company’s approach aims to strengthen customer trust, attract responsible capital, and build a resilient, purpose led organisation.

Looking Ahead
Your Company is entering FY 2026 with a clear vision and renewed energy. With a verticalised GTM strategy, streamlined operations, and a seasoned leadership team, your Company is entering its next growth phase – from stabilisation to scale.

Demand for digital transformation, enhanced user experiences, and AI-powered solutions remains nondiscretionary, while the investment climate around AI continues to be robust. The next four to five years will be pivotal, defined by high-performance, future-ready infrastructure – from hyperscale data centres to secure enterprise networks.

Your Company is well-positioned to seize these opportunities. Backed by strong industry tailwinds, a robust pipeline, and an order book of US$ 504 million, your Company remains on course to achieve US$ 2 billion revenue target by FY 2029.

Driven by capable leadership, a culture of innovation, and a long-term growth mindset, your Company is prepared to lead with confidence and conviction.

On behalf of the Board, I extend my heartfelt appreciation to the clients, partners, employees, and vendors for their continued trust and collaboration. Your unwavering support is the cornerstone of your Company’s success and inspires us to raise the bar consistently.

As we step into FY 2026, we do so with optimism, determination, and a renewed sense of purpose.

Thank you.
Warm Regards,
Dilip J Thakkar