Mumbai— Black Box Ltd, the technology services arm of the Essar Group, is setting its sights on doubling revenue to $2 billion by FY29, supported by a robust order book and surging demand in the data center and enterprise networking sectors, according to a report by JM Financial Institutional Securities Limited.
The company’s new order intake has reached $218 million—representing a book-to-bill ratio of 1.22x—while its total order book rose to $504 million, marking a 7 percent year-on-year increase. A strong project pipeline worth $2.5 billion offers clear growth visibility amid rising global IT spending, which is expected to hit $5.27 trillion in 2024.
Black Box is leveraging a verticalized sales strategy, focusing on its top 300 global clients—including industry leaders like Meta, Intel, Disney, and Bank of America—to grow its share of business within these strategic accounts.
A key driver of the company’s expansion is its data center segment, which currently contributes 17.5 percent of total revenue. This share is projected to grow to 25 percent by FY29, translating to a compound annual growth rate (CAGR) of 42 percent. Growth is fueled by hyperscaler capital expenditures and India’s rapidly scaling data center capacity, forecast to expand at a 25 percent CAGR over the next five years.
India remains central to Black Box’s growth strategy, with plans to double revenue in the country within the next three to four years. Accelerated investments in digital infrastructure are propelling the expansion, with India’s data center capacity expected to nearly triple to 2.8 GW by 2028. This growth is being driven by robust demand for cloud services, artificial intelligence (AI), and 5G connectivity.
These trends position Black Box to capitalize on opportunities in one of the world’s fastest-growing digital economies.
Reflecting confidence in its trajectory, JM Financial has assigned a “Buy” rating to Black Box Ltd, setting a target price of ₹670 per share—implying a potential upside of 33 percent.
With strategic leadership hires complete and experienced teams improving deal conversions, Black Box is well-placed to tap into transformative digital infrastructure trends—including cloud adoption, cybersecurity, AI, and the 5G rollout—to meet its ambitious growth goals. (Source: IANS)
