Black Box eyes $700 mn additional revenues via acquisitions in 3-4 years

Black Box Ltd, the BSE-listed digital infrastructure provider, plans to add about $700 million in revenues through acquisitions over the next three-four years, said Chief Executive Officer (CEO) Sanjeev Verma. 

The Essar group company is setting up a dedicated mergers and acquisitions (M&A) team to identify targets so that it can expand digital infrastructure capabilities and geographic reach. 

“We are already evaluating opportunities and expect to close at least one acquisition in the next six months,” Verma said in an interview on Tuesday. 

The firm is also aiming for organic revenue growth of around 15 per cent annually. Its $500 million order book is projected to rise 30–40 per cent by the end of the financial year, driven by enterprise and data-centre spending. 

“Large projects typically have an 18–24 month execution cycle, which gives us strong visibility over the next three years,” Verma said. Positioning itself as a key player in artificial intelligence (AI)-ready infrastructure, Black Box builds secure networks and data systems for banking, healthcare, and telecom clients. “AI’s promise can only be realised on robust digital infrastructure,” Verma said. 

Global computing power demand is expected to reach about 100 gigawatts (Gw) in the next five years, translating into a $200 billion addressable market.Black Box aims to capture a share of this opportunity and is targeting earnings before interest, taxes, depreciation andamortisation (Ebitda) of $200 million by 2029, with margins above 10 per cent. Investor interest in India’s data-infrastructure ecosystem is accelerating, with large funds and private equity players committing long-term capital. Domestic opportunities are also expected to expand under India’s new data localisation rules, Verma added. 

“Black Box has moved beyond systems integration to become a full-scale digital infrastructure solutions provider,” he said. “Our next phase is about scale — both organic and through acquisitions.”