Black Box Ltd Management Discussions

Economic Review
Global Economy

In calendar year (CY) 2025, the global economy
demonstrated resilience, expanding by approximately
3.4% despite persistent geopolitical uncertainties, supply-
side pressures and uneven recovery trends across regions.
Emerging Market and Developing Economies (EMDEs)
continued to outpace advanced economies, supported
by stronger domestic demand and investment activity.
Growth across advanced economies remained moderate
at approximately 1.9%, reflecting softer consumer
spending, elevated financing costs and subdued business
investment. The United States (US) recorded economic
growth of approximately 2.1% in CY 2025, by strong
consumer spending, a robust labour market, and artificial
intelligence (AI) investment-led technological investment.
The US economy remained one of the strongest among
advanced nations, despite challenges from global risks and
high interest rates.

Global inflation moderated from 5.8% to approximately
4.1%, aided by easing supply chain disruptions and
the gradual normalisation of monetary conditions. The
inflation rate in the US increased to 3.8% in April 2026, up

from 2.4% during January and February 2026 due to rising
energy costs. The US Fed has adopted a cautious approach
to interest rates to balance inflation risks and economic
growth concerns amidst the ongoing Middle East war and
rising fuel costs. Aligned with this, the federal funds rate
has been kept in the target range of 3.50%-3.75%.

Looking ahead, global economic growth is projected to
moderate to approximately 3.1% in calendar year 2026
before improving marginally to around 3.2% in calendar
year 2027. Although geopolitical developments, trade
policy uncertainties and financial market volatility may
continue to influence near-term economic conditions,
the medium-term outlook remains broadly stable.
Continued investment in technology, particularly in
artificial intelligence (AI) and digital infrastructure across
North America and Asia, is expected to support innovation,
productivity enhancement and long-term economic
growth. The US economy is likely to remain resilient despite
the Middle East war, with the IMF forecasting growth of
2.3% in 2026 and 2.1% in 2027. In addition, ongoing policy
initiatives, strengthening institutional frameworks and
international cooperation are expected to contribute to
economic resilience and support a more stable operating
environment across global markets.

Indian Economy

The Indian economy continued to demonstrate resilience
during FY 2026 despite a challenging global environment
characterised by geopolitical uncertainties, trade
disruptions and volatile commodity markets. Supported
by strong domestic fundamentals and proactive policy
measures, Indias real GDP growth is estimated at 7.6% in
FY 2026, compared to 7.1% in FY 2025, based on the revised
national accounts series with FY 2023 as the base year.

Economic growth was underpinned by steady private
consumption, improving investment activity and sustained
momentum across both the services and manufacturing
sectors. Fiscal policy measures, including GST and income-
tax rationalisation initiatives, supported domestic demand,
while monetary policy actions comprising policy rate
reductions, liquidity support measures and calibrated
interventions contributed to macroeconomic stability
amid evolving global trade and geopolitical developments.

Indias medium-term growth outlook continues to
be supported by structural reforms, infrastructure
investments, a favourable demographic profile and
increasing integration with global supply chains. Recent
trade agreements and ongoing economic partnerships
with key international markets, including Europe, the
United Kingdom, the United States and New Zealand, are
expected to strengthen trade and investment flows and
enhance Indias long-term growth prospects.

Looking ahead, the Indian economy is projected to grow by
approximately 6.9% in FY 2027. While growth is expected
to remain among the highest globally, the outlook may

be influenced by external factors, including geopolitical
tensions, fluctuations in energy prices and broader global
economic conditions.

From an IT services perspective, the services sector
continues to demonstrate strong momentum, supported
by the rapid adoption of digital technologies, ongoing cloud
transformation initiatives, and increasing investments
in artificial intelligence (AI). These trends are sustaining
a favourable demand environment across key markets.
Additionally, global enterprises are intensifying cost
optimisation efforts and rationalising vendor portfolios,
driving greater reliance on strategic engineering and digital
transformation partners. This is creating opportunities for
service providers through increased offshoring, deeper
client engagements, and growing demand for efficiency-
driven transformation and innovation initiatives.

Sources: RBI, MOSPI

Industry Overview

Global Digital Infrastructure Transformation

The global Al-led digital infrastructure industry including
data centre is undergoing a structural transformation
of unprecedented scale, driven by the convergence of
artificial intelligence, hyperscale data centre expansion,
cloud adoption, and next-generation connectivity. These
secular megatrends are not cyclical in nature; they
represent a fundamental re-architecture of how the world
stores, processes, and transmits information. The result
is a sustained, multi-year demand environment that is
supply-constrained rather than demand-constrained -
a distinctive characteristic that underpins the long-term
commercial opportunity available to leading infrastructure
integrators and managed services providers.

Black Box Corporation operates at the intersection of these
converging forces, providing critical network infrastructure,
unified communications, and digital transformation
services to enterprise and hyperscale customers globally.
The Companys breadth of capabilities - spanning
physical layer infrastructure, intelligent networking, and
cybersecurity - positions it to capture a disproportionate
share of capital being deployed across AI-led digital
infrastructure growth in data centre and enterprise
IT ecosystem.

Structural Growth Drivers

Artificial Intelligence

Artificial intelligence has emerged as the most significant
catalyst for digital infrastructure investment. AI workloads
are expected to grow approximately 6x by 2030, driving
substantial demand for high-performance computing
environments, advanced networking architectures, and
specialised infrastructure solutions.

The transition from traditional CPU-based computing
environments to GPU-intensive architectures is expected
to materially increase requirements for structured
cabling, power distribution, cooling systems and low-
latency connectivity.

Data Centre Expansion

Global data centre capacity is experiencing unprecedented
growth as organisations expand computing capabilities to
support cloud and AI workloads.

Global IT load capacity is expected to increase from
approximately 87 GW in 2025 to approximately 233 GW by
2030, representing one of the largest infrastructure build-
out cycles in the industrys history.

Cloud Adoption

Cloud computing continues to transform enterprise
technology architectures globally. 4x growth expected by
2030 to manage huge volumes of data being generated.
Organisations are increasingly migrating workloads
to hybrid and multi-cloud environments to improve
scalability, flexibility and operational efficiency.

The continued migration of enterprise applications,
communications platforms and data workloads to cloud
environments is creating sustained demand for networking,
connectivity and managed infrastructure services.

Next-Generation Connectivity

The deployment of private 5G networks, fibre infrastructure,
Wi-Fi 7 and edge computing environments is driving a
multi-year network modernisation cycle across enterprise,
industrial and public sector environments.

These technologies are enabling new applications across
manufacturing, healthcare, logistics, transportation and
smart infrastructure ecosystems.

Cybersecurity

Cybersecurity has become a strategic priority for
organisations worldwide. Increasing digitalisation, evolving
regulatory requirements and the emergence of AI-
enabled threat vectors are driving continued investment

in cybersecurity solutions and services. As enterprises
expand their digital footprints, cybersecurity requirements
increasingly span connectivity infrastructure, devices,
cloud environments and data storage platforms.

Industry Tailwinds

Black Box is well positioned to benefit from the sustained
demand for digital infrastructure across global markets,
with particular strength in the United States. The
Companys positioning is aligned with several structural
trends: the expansion of data centres, increased
enterprise investment in secure networks, modernisation
of collaboration and workplace technologies, growing
demand for edge infrastructure, and the need for reliable
partners to execute complex, multi-site transformation
programmes. These trends are further supported by the
broader increase in global IT and data centre spending,
with Gartner forecasting worldwide IT spending to
reach US$ 6.31 Trillion in 2026 and data centre systems
spending to grow 55.8%, driven by AI infrastructure and
high-performance compute demand.

The acceleration of AI adoption is creating a new layer
of infrastructure demand. AI workloads require higher
compute density, resilient connectivity, secure and scalable
network architectures, intelligent edge capabilities, power-
aware design and faster deployment cycles. As enterprises
move from experimentation to scaled AI use cases, the
requirement will not be limited to hyperscale data centres
alone; it will extend to enterprise campuses, branch
networks, manufacturing sites, retail environments,
healthcare facilities, financial services infrastructure and
public-sector operations. This broadening of demand is
strategically relevant for Black Box, given its experience
across multiple industries and its ability to support both core
infrastructure and distributed deployment environments.

Black Boxs go-to-market model provides an important
advantage in this environment. The Company combines
vertical focus with horizontal solution capabilities, enabling
it to deepen engagement with existing enterprise
customers while addressing new opportunities across
high-growth infrastructure categories. Its presence across
the United States, Europe, India, Asia Pacific, the Middle
East and Latin America, together with delivery and support
capabilities across multiple locations, allows Black Box to
serve customers that require both global consistency and
local execution. The Companys profile as a global digital
infrastructure solutions provider serving Fortune 100 and
other large enterprises across sectors such as financial
services, technology, healthcare, retail, public services and
manufacturing supports this positioning.

The Companys strengths are particularly relevant in
markets where execution capability is becoming as
important as technology selection. In data centres, AI
infrastructure and enterprise network transformation,
customers face constraints relating to deployment
timelines, availability of skilled resources, project
complexity, interoperability and operational resilience.
Industry research indicates that AI-driven data centre
demand is reshaping the market, with power availability,
construction complexity, supply chain challenges
and infrastructure-scale execution becoming key
considerations for customers and investors. In this
context, Black Boxs ability to operate across planning,
integration, deployment and managed services creates
a favourable position to capture opportunities arising
from both new infrastructure builds and ongoing
modernisation programmes.

Black Box is also positioned to benefit from the
convergence of physical infrastructure, connectivity,
cybersecurity, automation and intelligent edge
requirements. As digital infrastructure becomes more
distributed, customers increasingly need partners who
can bring together hardware, software, networking,
security and field implementation capabilities. The
Companys solution portfolio across networking, AV,
KVM, IoT, infrastructure and cabling, along with its digital
infrastructure services, enables it to support a broader
share of customer requirements rather than participate
in isolated project components. This creates the potential
for deeper customer relationships, higher repeat
engagement and improved relevance across enterprise
technology cycles.

Market Opportunity and Total Addressable Market
A Multi-Trillion Dollar Digital Infrastructure Opportunity

Global Digital Infrastructure Opportunity

The global data centre infrastructure market is estimated at approximately US$ 0.6 Trillion in 2025, whereas Global enterprise
IT spending exceeds approximately US$ 6.0 Trillion and includes networking, connectivity, unified communications &
collaborations, cybersecurity and IT services.

Together, these markets represent a combined opportunity exceeding US$ 6.6 Trillion and form the foundation of the
modern digital economy.

Data Centre Infrastructure Opportunity

The data centre industry is currently experiencing one of the largest capacity expansion cycles in its history.

Global IT load capacity is projected to increase from
approximately 87 GW in 2025 to approximately 233
GW by 2030, representing a near three-fold increase in

installed capacity.

A significant proportion of this expansion is attributable
to artificial intelligence (AI) workloads. AI-related IT load is
projected to increase from approximately 20 GW in 2025
to approximately 117 GW by 2030, representing a CAGR
of approximately 40%.

By 2030, AI workloads are expected to account for nearly
half of total global data centre demand, accelerating the
shift toward GPU-centric computing environments.

This expansion is creating substantial demand across the
network infrastructure layer, including structured cabling,
high-performance connectivity, network commissioning
and intelligent infrastructure management.

Enterprise IT Opportunity

The enterprise IT market continues to benefit from digital transformation initiatives, cloud migration, hybrid workplace
adoption, network modernisation and cybersecurity investments.

Segment	2025 Market Size	Incremental Opportunity (Next Five Years)
Network Infrastructure & Connectivity	US$ 1,255 Billion	US$ 200 Billion
Unified Communications & Collaboration	US$ 444 Billion	US$ 50 Billion
Cybersecurity	US$ 187 Billion	US$ 100 Billion

Source: Gartner, IDC ICT spending report, Technavio Global DC report, Arizton DC report

Network Infrastructure and Connectivity

Network infrastructure and connectivity represent the
largest component of Black Boxs addressable opportunity.
It is the core business of Black Box which will continue to
provide growth and scale over a long-term period.

Industry estimates indicate spending of approximately
US$ 1,255 Billion in 2025, with approximately US$ 200
Billion of incremental market expansion expected over
the next five years. Black Box, as per companys internal
estimates, only captures 0.2% of the total opportunity.
This indicates a large upside for the company over the
long term.

Unified Communications and Collaboration

The unified communications and collaboration market is
estimated at approximately US$ 444 Billion in 2025.

Organisations continue to migrate voice, video, messaging,
contact centre and collaboration workloads onto integrated
cloud-based platforms, while AI-enabled capabilities are
increasingly becoming standard enterprise requirements.

Approximately, US$ 50 Billion of incremental market
opportunity is expected over the next five years.

Cybersecurity

The cybersecurity market is estimated at approximately
US$ 187 Billion in 2025.

Demand continues to be supported by increasing cyber
threats, data privacy requirements, identity and access
management needs, regulatory compliance obligations
and enterprise risk management priorities. There is also
a push from the governments and the regulators which
creates a strong tailwind, also addressing the criticality of
cybersecurity across public and private institutions.

Approximately, US$ 100 Billion of incremental market
opportunity is expected over the next five years.

Key growth drivers across the digital infrastructure
ecosystem include the following structural trends:

Accelerating investment in Al-ready, resilient, and
high-performance data centre (DC) infrastructure, as

AI load rapidly surges towards 50% of total demand
by 2030, increasing demand for high-density power,
advanced cooling, and technical sophistication; the
expansion of hyperscalers into emerging markets
are further unlocking opportunities for scalable
D deployment

Expansion of private 5G networks across enterprise
environments, including factories, hospitals,
airports and warehouses, driving large-scale
deployment of advanced networking and connectivity
infrastructure to support mission-critical and latency-
sensitive applications

Migration of enterprise communications to cloud-
based platforms, with organisations consolidating
voice, video and collaboration workloads onto
integrated systems. These platforms are increasingly
embedding AI-enabled capabilities such as automated
transcription, meeting summaries and sentiment
analysis as standard functionality

Post-COVID refresh cycle in audio-visual (AV)
infrastructure, as enterprise AV environments
transition into their first major upgrade cycle. The
convergence of AV systems with core IT networks
is driving demand for integrated, software-defined
infrastructure architectures

Increasing adoption of edge computing and
Wi-Fi 7 technologies, supporting enterprise campus
network redesigns. Growth in loT and machine vision
workloads is driving bandwidth consumption multiples
of traditional enterprise applications, resulting in a
multi-year transition toward fibre-rich, high-capacity
network architectures

Rising focus on cybersecurity and identity protection,

driven by increasing incidence of identity-based
attacks, expansion of enterprise digital footprints, and
strengthening regulatory and corporate governance
requirements across jurisdictions

Total Addressable Market

The world is entering a defining phase of digital
infrastructure expansion, where data, cloud, AI,
cybersecurity and connected enterprises are becoming
as critical to economic growth as roads, ports and power
grids were in earlier industrial cycles. The rapid rise of AI-
led data centre capacity, accelerated cloud migration,
growing need for low-latency and secure enterprise
networks, increasing adoption of unified communications
and digital workplace platforms, and rising dependence on
managed infrastructure services are together reshaping
how enterprises build, connect, secure and operate their
technology backbone.

Within this global digital infrastructure ecosystem,
Black Box addresses an estimated Total Addressable
Market of approximately US$ 240-250 Billion across
data centre and enterprise infrastructure segments,

including opportunities in network infrastructure, data
centre services, unified communications, cybersecurity,
managed services, structured cabling, digital workplace
infrastructure and lifecycle support.

Importantly, Black Box is not constrained like many niche
players that operate in a single geography or serve only
one layer of the technology stack; its global presence
across North America, Europe, India, APAC, Middle East,
Latin America and ANZ, combined with its multi-solution
portfolio, allows the company to address a much larger and
more diversified opportunity.

As enterprises and hyperscalers continue to invest in
scalable, secure and AI-ready digital infrastructure,
Black Box is advantageously positioned at the intersection
of build-out, integration, modernisation and managed
operations - making the future opportunity not only large,
but structurally compelling.

Total Addressable Market

(Data Centre Infrastructure and Enterprise

IT infrastructure)

Industry Deep-Dive
Vertical

Banking, Financial Services & Insurance (BFSI)

Banks, insurers and capital market institutions continue
to prioritise digital infrastructure that improves resilience,
security, customer engagement and operating efficiency.
The sector is moving from channel digitisation to AI-
enabled, real-time and data-driven operating models, with
increased investment in cloud migration, secure branch
and contact-centre modernisation, identity management,
threat detection, application modernisation and low-
latency connectivity. The rise of embedded finance,
autonomous AI agents, alternative-data lending and digital
payments is also increasing the need for reliable, compliant
and scalable infrastructure across front-office, middle-
office and back-office environments. Frost & Sullivans
2026 digital financial services analysis highlights AI-driven
automation, embedded finance, payment fragmentation,
quantum-security implications and legacy IT constraints
as key forces shaping the sector.

For Black Box, BFSI remains a strategically relevant vertical
given the sectors dependence on secure, always-on
infrastructure across branches, operations hubs, contact
centres, data centres and hybrid workplace environments.
The Companys capabilities in enterprise networking,
unified communications, managed services, cybersecurity
and infrastructure modernisation are aligned with the
priorities of large financial institutions that are balancing
digital acceleration with regulatory, operational and cyber-
resilience requirements. BFSI is among companys major
industry opportunity, with focus areas including AI-led
operations, cloud migration and zero-trust security.

Healthcare

Healthcare technology investment is being driven by
a combination of clinical digitisation, connected care,
AI-enabled workflows, telehealth, cybersecurity, data
interoperability and rising pressure to improve patient
experience while reducing administrative burden. In 2026,
AI-powered virtual healthcare assistants are emerging as
an important transformation theme, supporting use cases
such as appointment scheduling, symptom assessment,
medication reminders, clinical documentation, workflow
automation and diagnostic support. Frost & Sullivans June
2026 analysis notes that healthcare organisations are
adopting patient-facing and clinician-facing AI assistants
to address workforce shortages, rising operational costs
and growing patient expectations.

This creates continued demand for secure networks,
reliable wireless infrastructure, digital workplace platforms,
patient-facing communication systems, cybersecurity,
connected facilities and managed IT services.

Black Boxs healthcare presence, including support for large
hospital networks and healthcare systems, positions the
Company to address infrastructure requirements across
clinical, administrative and operational environments. The
Companys ability to support HIPAA-aligned infrastructure,
secure connectivity, modern workplace tools, AV systems
and managed services remains relevant as healthcare
providers modernise campuses and expand digitally-
enabled care models.

Technology

Technology companies, hyperscalers, semiconductor
players, cloud providers and colocation operators remain
at the centre of the global digital infrastructure build-
out. AI adoption is materially increasing demand for
data centre capacity, high-density cabling, power-aware
infrastructure, network performance, edge connectivity,
cooling enablement and Day-2 operations. Gartners April
2026 IT spending forecast projects worldwide data centre
systems spending to grow 55.8% in 2026 to approximately
US$ 788 Billion, driven by AI infrastructure, hyperscale
cloud demand and high-performance compute.

The data centre cycle is also becoming more complex. JLLs
2026 Global Data Centre Outlook expects nearly 100 GW
of new data centre capacity between 2026 and 2030, with
the global data centre sector likely to grow at a 14% CAGR
through 2030 and AI potentially representing about half
of all workloads by 2030. Power availability, rack density,
cooling requirements, construction delays and hybrid
infrastructure portfolios are becoming central to enterprise
and hyperscaler planning.

Black Box is strongly aligned to these trends through its
data centre infrastructure, connectivity, structured cabling,
network integration, DC support services and managed
services capabilities. The Company has exposure to
hyperscalers, semiconductor majors and colocation players,
and estimates global data centre IT load capacity rising from
87 GW in 2025 to 233 GW by 2030E, with AI loads moving
toward approximately 50% of total demand by 2030.

Retail / Consumer

Retail and consumer-facing enterprises are entering
a new phase of digital transformation focussed less
on standalone e-commerce and more on integrated,
Al-enabled omnichannel operations. Retailers are
modernising networks, stores, inventory systems,
customer engagement platforms, digital signage, point-
of-sale infrastructure, edge computing environments
and cybersecurity architectures. Kyndryls 2026 Retail
Readiness Report notes that retailers increased AI
investments by 33% over the prior 12 months, while 48%
significantly upgraded IT infrastructure; however, technical
debt and fragmented omnichannel systems remain
major barriers.

Physical stores continue to remain relevant, but they are
becoming more digitally-enabled. With more than 80% of
retail sales still occurring through physical stores, retailers
are investing in store-level agility, real-time inventory
visibility, AI-supported customer engagement, secure
payment systems and integrated fulfilment models. This
supports demand for structured cabling, in-store wireless,
AV-over-IP, digital signage, edge infrastructure, managed
services and secure connectivity.

Black Boxs capabilities in connectivity infrastructure,
modern workplace, AV, digital signage, enterprise
networking and managed services are well suited to these
requirements, particularly for large multi-location retailers
seeking consistent deployment standards and execution
across store networks. Key themes include AI-enabled
unified commerce, store digitisation and infrastructure
refresh cycles.

Public Sector

Public sector digital transformation continues to
be driven by citizen-service modernisation, secure
digital identity, cloud adoption, cybersecurity, public
infrastructure digitisation, transportation modernisation
and mission-critical communications. Governments and
public agencies are increasingly investing in resilient
networks, digital service platforms, secure collaboration
environments, smart infrastructure and cyber-resilient
operating models. Gartners 2026 cybersecurity trends
highlight regulatory volatility, AI-related attack surfaces,
post-quantum readiness and identity governance for AI
agents as emerging priorities, all of which are relevant to
public-sector technology planning.

Defence and critical infrastructure spending also reflects
this trend. Frost & Sullivans June 2026 analysis of the
U.S. market notes that the U.S. Department of Defense
requested US$ 42.7 Billion in FY 2026 funding for C5ISR-
related programmes, up 11.4% over FY 2025, driven by
AI-enabled decision support, cyber-resilient architectures,
open systems, space-based communications and next-
generation networking.

For Black Box, public sector opportunities are aligned to
secure connectivity, command-and-control environments,
cybersecurity, airport and transport infrastructure,
managed services, surveillance, AV, network monitoring
and digital workplace solutions. The Companys experience
in public services, airports, municipal and government-
related technology programmes provides a relevant base to
participate in modernisation opportunities where reliability,
compliance, security and field execution are critical.

Industrial

Industrial enterprises are accelerating investments in
Industry 4.0, smart factories, private 5G, industrial IoT, edge
computing, AI-enabled quality inspection, automation,
digital twins, robotics and resilient plant networks.
Manufacturing facilities are increasingly moving from
isolated automation systems to connected, data-driven
operating environments that require secure, low-latency
and high-availability infrastructure. Qualcomm and
Siemens demonstrated in 2026 how private industrial 5G
combined with edge AI can support autonomous guided
vehicles, robotic operations, real-time diagnostics and
quality inspection in factory environments.

Private 5G is becoming increasingly relevant in factories,
logistics hubs and industrial campuses because it supports
reliable connectivity across sensors, machines, mobile
devices, robots and automation systems. CIO reported
in April 2026 that Cargill is deploying private 5G across
manufacturing facilities to support AI and automation
use cases, including factory-floor connectivity, automated
inspections and industrial sensors.

Black Boxs industrial opportunity is linked to connectivity
infrastructure, private wireless/LTE networks, structured
cabling, IoT, physical security, edge networking, command
centres, AV integration and managed support. As industrial
customers modernise legacy facilities and build new smart
manufacturing environments, demand for integrated
infrastructure partners is expected to remain steady.

Geographical

North America Market Opportunity

North America, led predominantly by the United States,
is Black Boxs largest and most strategic market,
contributing approximately 65% of the companys
revenue as of FY 2026. This is highly significant because
the U.S. remains the deepest and most mature digital
infrastructure market globally, supported by hyperscale
cloud expansion, enterprise digital transformation, AI
infrastructure investments, private networks, cybersecurity
modernisation and managed services outsourcing, with an
ability to spend very large amounts of capital.

The scale of the U.S. opportunity is substantial. The U.S.
continues to be the anchor market for global data centre
infrastructure, supported by hyperscaler investments,
AI-led compute requirements, cloud expansion and
increasing enterprise digitisation. The opportunity is better
reflected through capacity and investment intensity than
through narrow market-revenue estimates. As per industry
sources, U.S. data centre IT load capacity is expected to
expand from approximately 47 GW to 158 GW by 2030,
while global capacity is expected to grow from 87 GW in

2025 to 233 GW by 2030E, implying nearly 22% CAGR.
This translates into more than 100 GW of new global
supply and approximately US$ 3 Trillion of announced
investments, with AI workloads expected to approach
50% of total data centre demand by 2030. Gartners April

2026 forecast further reinforces this trend, projecting
worldwide data centre systems spending to increase
55.8% in 2026 to nearly US$ 788 Billion, as AI workloads
drive rapid growth in hyperscale, high-performance and
power-dense infrastructure.

The U.S. remains the worlds largest data centre market
by installed footprint and continues to represent the most
important regional demand pool for AI-led infrastructure
build-out. As of 2026, the U.S. accounted for the
largest number of data centres globally, with industry
datasets indicating more than 5,400 listed facilities and
approximately 46% of global data centre count. On a
capacity basis, the Americas represent about half of global
data centre capacity, underscoring the regions central role
in hyperscale, cloud and AI infrastructure expansion.

Operational indicators in North America also point to a
strong demand-supply imbalance. CBRE reported that
primary-market vacancy declined to a record-low 1.4% at
year-end 2025. This was around 2.3% in 2024.

All this directly benefits companies like Black Box,
whose offerings cover structured cabling, network
integration, data centre deployment, rack-and-stack, Day
2 support, managed services, cybersecurity support and
unified communications.

Beyond data centres, North America also offers a large
enterprise managed services opportunity. The North
America managed services market is estimated at US$ 73.6
Billion in 2025 and is projected to reach US$ 119.2 Billion by
2030, growing at approximately 10.1% CAGR. This strongly
overlaps with Black Boxs managed service desk, on-site
support, data centre managed services, managed UCaaS,
Wi-Fi-as-a-Service and staff augmentation offerings.

Against Black Boxs global TAM of US$ 240-250 Billion,
North America can reasonably be viewed as the largest
regional opportunity, potentially representing 50-60% of

serviceable market across data centre services, network
integration, enterprise infrastructure, managed services,
cybersecurity support and unified communications. The
companys U.S.-centric revenue base gives it a strong
platform to participate in the largest and fastest-scaling
portion of global digital infrastructure spending.

Europe Market Opportunity

Europe represents Black Boxs another major developed-
market opportunity, supported by large enterprise
IT budgets, sovereign cloud adoption, regulatory
requirements, cybersecurity investments and continued
data centre expansion. The region is structurally attractive
because enterprises are modernising legacy infrastructure
while governments and regulators are pushing for secure,
compliant and locally hosted digital infrastructure.

Gartner projected European IT spending at US$ 1.28
Trillion in 2025, growing 8.7%, and subsequently forecast
this to rise to US$ 1.43 Trillion in 2026, growing 11.1%.
Within this, European data centre systems spending is
expected to increase from US$ 83.6 Billion in 2025 to US$

99.3 Billion in 2026, while IT services spending is expected
to rise to nearly US$ 540 Billion. These pools are directly
relevant for Black Boxs enterprise network, managed
services, data centre support and cybersecurity-led
infrastructure offerings.

Demand remains strong despite power and
permitting constraints.

For Black Box, Europe can be viewed as a US$ 45-60 Billion
serviceable opportunity within the broader global TAM,
spanning data centre infrastructure, enterprise network
modernisation, managed services, UCaaS, cybersecurity
support, cloud connectivity and digital workplace

5 /

infrastructure. The opportunity is reinforced by Europes
regulatory environment, data sovereignty requirements, AI
infrastructure build-outs and rising enterprise demand for
secure, professionally managed infrastructure.

India Market Opportunity

India has emerged as one of the fastest-growing digital
infrastructure markets globally, supported by accelerating
cloud adoption, increasing enterprise digitalisation,
hyperscale investments and favourable demographic and
economic fundamentals.

Data centre IT load capacity in India is projected to increase
from approximately 1.3 GW in 2025 to approximately 8 GW
by 2030, representing a 42% increase in installed capacity.

Simultaneously, Indias enterprise IT spending is expected
to reach US$ 171 Billion, a 9.3% increase compared to
2025, supported by digital transformation initiatives,
private 5G deployments, cybersecurity investments and
cloud migration programmes. Within the US$ 171 Billion
spends, US$ 23-25 Billion is expected to be IT infra spend.

By bringing together data centre infrastructure and
enterprise technology opportunities, Black Boxs
addressable market in India is estimated to be around
US$ 7-8 Billion based on its current portfolio scope.

Over the long-term, beyond FY 2035, Black Box believes,
Indias data centre IT load capacity has the potential to cross
20 GW if much of the data is stored, used and processed
within the country. India is the worlds largest consumer
of mobile data consuming, 31GB per capita per month in
2025, yielding around 27 exabytes per month, growing at
a CAGR of 21.7% over the last five years, as per Nokias 13^th
edition MBiT report. At an assumed 15% CAGR, this can
double to 62GB by 2030.

Rest of World Market Opportunity

The Rest of World opportunity comprising APAC excluding
India, Latin America led by Brazil, Middle East & Africa and
ANZ is smaller than North America in current contribution
but faster-growing and highly strategic. These regions are
earlier in the digital infrastructure maturity curve and are
seeing strong investments in cloud regions, AI-ready data
centres, smart cities, enterprise connectivity, public digital
infrastructure and managed IT services. As U.S. and Europe
mature, RoW will present the next leg of growth for Black
Box by when the company would have built a stronger
portfolio and will build deeper customer relationships.

In APAC ex. India, the broader APAC data centre market
witnessed investments of US$ 126.6 Billion in 2025 and

is expected to reach US$ 255.5 Billion by 2031, growing
at 12.4% CAGR, with power capacity projected to exceed
8,343 MW by 2031. Another estimate projects the APAC
data centre market to increase from US$ 78.3 Billion in 2025
to US$ 151.1 Billion by 2030, implying 14.1% CAGR. This
creates a large opportunity for Black Box across hyperscale
build-outs, enterprise networking, structured cabling,
managed services, control rooms and cloud connectivity.

Australia and New Zealand (ANZ) is a premium developed-
market opportunity within APAC, supported by high
cloud adoption, data sovereignty needs, enterprise
modernisation and AI-ready infrastructure demand. CBRE
noted that high-density compute and AI-related workloads
are driving multi-megawatt demand across markets
including Sydney, with operators increasing rack density
and adopting liquid cooling.

In Latin America, the opportunity is largely Brazil-led. The
Latin America data centre market was valued at US$ 7.2
Billion in 2024 and is projected to reach US$ 14.3 Billion
by 2030, growing at 12.2% CAGR. Brazil accounts for over
41% of Latin Americas data centre investments, while
major cloud and AI investments - including Microsofts
announced US$ 2.7 Billion investment in Brazil - are
accelerating infrastructure demand.

Together, Rest of World markets can represent a US$ 35-45
Billion serviceable opportunity for Black Box within its
global TAM. While these markets are less mature than the
U.S., they offer faster growth, greenfield infrastructure
opportunities and strong demand for network integration,
data centre services, managed support, cybersecurity and
enterprise connectivity.

Summary

Black Boxs US$ 240-250 Billion global TAM is supported by
a clear geographic structure: North America as the largest
and deepest opportunity, Europe as a large compliance-
and cloud-sovereignty-led market, and Rest of World as
a faster-growing infrastructure expansion opportunity.
The companys strong North America revenue base is
particularly important because the U.S. sits at the centre
of global AI, cloud and data centre capital expenditure.

With capabilities across data centre infrastructure, network
integration, unified communications, cybersecurity
support, managed services and technology products,
Black Box is positioned to participate across the full lifecycle
of digital infrastructure from design and deployment
to operations, maintenance and modernisation. This
makes the companys TAM credible, large and structurally
supported by long-term global technology spending trends.

Industry Structure and Competitive Dynamics

The global digital infrastructure services market remains
sizeable, growing and structurally attractive, supported
by enterprise cloud adoption, data centre expansion,
workplace modernisation, cyber resilience, network
transformation and the rapid emergence of AI-led
infrastructure requirements. Within this broad opportunity
set, the competitive landscape continues to be fragmented,
particularly in the United States, where customers are
served by a mix of local system integrators, regional cabling
and network deployment specialists, equipment-centric
value-added resellers, niche managed service providers
and a smaller set of larger platform companies. While
some participants have scale in specific service lines or
geographies, the market continues to lack a large number
of truly end-to-end providers that combine global reach,
multi-technology integration capabilities, field execution
depth, programme management discipline and long-
standing enterprise relationships.

Competition in the industry is therefore broad but uneven.
A significant portion of the market is represented by smaller
and mid-sized players that are often strong in a particular
geography, technology stack or service category, but may
not have the ability to support complex, multi-site, multi-
country deployments at enterprise scale. In several cases,
these competitors operate as specialist contractors or
single-solution providers, with limited ability to participate

across the full lifecycle of design, deployment, integration,
managed services and ongoing optimisation. At the other
end of the market, some larger competitors are financial-
sponsor-owned or platform-driven organisations, but their
relevance can vary depending on customer requirements,
delivery model, sector focus and geographic coverage.
This creates a competitive environment where breadth
of capability, execution reliability and trusted customer
access are increasingly important differentiators.

For large global enterprises, hyperscalers, financial
institutions, technology companies, healthcare providers,
retailers, public-sector entities and manufacturing
organisations, vendor selection is increasingly shifting
from pure price-based procurement to a more
comprehensive assessment of delivery certainty, technical
depth, compliance-readiness, speed of execution and
ability to scale across locations. This shift is particularly
relevant in the U.S. market, where digital infrastructure
programmes are becoming larger, more time-sensitive
and more integrated with business outcomes. Customers
are increasingly looking for partners who can reduce
complexity, manage multiple technology ecosystems, and
deliver consistent outcomes across critical infrastructure
environments. This dynamic supports the providers that
have the right operating model, domain experience and
customer intimacy, while making it more difficult for
narrowly focussed competitors to address enterprise-wide
transformation needs.

Black Box operates within this competitive landscape
with a differentiated position built around global delivery
presence, deep technical capabilities, multi-vendor
integration expertise and long-standing relationships with
large enterprise customers. The Companys relevance is
strengthened by its ability to address a broad set of digital
infrastructure needs, including network integration,
data centre infrastructure, digital connectivity, modern
workplace solutions, cybersecurity, technology products
and managed services. This breadth allows Black Box
to engage with customers not as a transactional service
provider, but as an infrastructure partner capable
of supporting mission-critical programmes across
geographies, industries and technology domains.

Rs Industry Outlook

The digital infrastructure industry remains positioned for
sustained growth, driven by structural demand for cloud, AI
workloads, secure connectivity, automation, hybrid work,
edge computing, cybersecurity and managed services.
^l These themes are now embedded in enterprise technology
^, strategies and are expected to support continued
investment across data centres, networks, workplace
infrastructure and security.

; AI is emerging as a major incremental driver of infrastructure
^; demand, requiring higher-capacity networks, low-latency
architectures, resilient data centre environments and
secure distributed infrastructure. JLLs 2026 Global Data
Centre Market Outlook expects nearly 100 GW of new
data centre capacity to be added globally between 2026
and 2030, with the sector expanding at a 14% CAGR
through 2030.

The U.S. is expected to remain a key market, supported
by hyperscale activity, AI infrastructure build-out and
modernisation across mission-critical industries. At the
same time, opportunities are increasingly global, favouring
providers with multi-country delivery capability, strong
partner ecosystems and scalable operating models.

For Black Box, the outlook is supported by favourable
industry tailwinds and Company-specific strengths. Its
global delivery model, enterprise customer base, technical
depth, multi-solution portfolio and focussed go-to-market
approach position it well to capture demand across digital,
Al-ready and resilient infrastructure markets.

Overall, Black Boxs diversified capabilities and execution-
oriented model will enable it to participate in industry
growth without dependence on a single market, customer
segment or technology trend.

Source: Gartner worldwide IT spending 2026, IDC ICT spending
report, Technavio Global DC report, Arizton DC report

1 India Source: ILL, CM, CBRE, Avendus Report, Savills Report,
Colliers India, Interviews with industry experts, press search,
analyst reports; BCG analysis

Opportunities and Challenges
Opportunities

1. Al-led data centre infrastructure build-out

AI workloads are creating a multi-year infrastructure cycle across hyperscale, colocation and enterprise environments.
Global data centre IT load capacity is expected to expand from 87 GW in 2025 to 233 GW by 2030E, while Gartner projects
worldwide data centre systems spending to grow 55.8% in 2026 to approximately US$ 788 Billion. This creates strong demand
for structured cabling, connectivity infrastructure, network integration, deployment support and managed operations.

2. Strong U.S. and global hyperscale demand

The U.S. remains the largest and most important market for hyperscale infrastructure expansion, with data centre IT
load capacity expected to increase from approximately 47 GW to 158 GW by 2030. Black Boxs presence in North
America, relationships with large technology enterprises and capabilities across data centre infrastructure, connectivity
and support services position the Company to participate in this growth.

3. Expansion of enterprise networking, connectivity and edge infrastructure

Enterprises are modernising campus networks, branch infrastructure, wireless environments, private networks and edge
connectivity to support cloud, AI, IoT, automation and high-bandwidth workloads. The estimated incremental spending
over the next five years is approximately US$ 200 Billion in networking and connectivity.

4. Rising cybersecurity and resilience spending

Cybersecurity is increasingly becoming embedded into enterprise infrastructure design, driven by AI-related attack
surfaces, identity risks, regulatory requirements and the need for resilient operations. Gartners 2026 cybersecurity
trends highlight agentic AI oversight, regulatory volatility, post-quantum readiness and identity governance for machine
actors as key priorities for enterprises. The estimated spending over the next five years in cybersecurity is US$ 100 Billion.
Black Boxs capabilities in secure networking, managed security, infrastructure security and identity-related services are
aligned to these priorities.

5. Indias GCC expansion and digital infrastructure demand

Indias GCC ecosystem has scaled rapidly, reaching 2,117 GCCs, 3,728 GCC units, 2.36 Million professionals and US$ 98.4
Billion in revenue as of FY 2026*. As GCCs increasingly take ownership of AI, cybersecurity, product engineering, platforms
and global operations, demand for secure networks, collaboration infrastructure, data centres, managed services and
enterprise-grade technology support is expected to strengthen.

6. Modern workplace, collaboration and customer experience transformation

Hybrid work, cloud communications, AV refresh cycles, customer experience platforms and AI-enabled collaboration
are driving enterprise investments in modern workplace infrastructure. Retailers, healthcare providers, financial
institutions and public-sector organisations are increasingly seeking integrated digital environments that improve
productivity, customer engagement and operational visibility. The estimated spending over the next five years in unified
communications and collaborations is US$ 50 Billion.

7. Opportunity to deepen strategic account relationships

Large enterprises are increasingly prioritising trusted partners who can deliver consistently across geographies,
technologies and operating environments. Black Boxs focussed customer strategy, global delivery presence, partner
ecosystem and multi-solution portfolio provide an opportunity to deepen wallet share within strategic accounts and
pursue larger, longer-tenure engagements.

Source: Nasscom-Zinnov GCC 2026 Landscape Report

8. Growth in Technology Product Solutions (TPS) and IP-led offerings

Enterprises are increasingly seeking differentiated, secure and high-performance technology products for control rooms,
AV, KVM, IoT monitoring, video walls, digital signage and signal management. Black Boxs TPS portfolio provides an
opportunity to expand higher-margin, IP-led and platform-oriented offerings, particularly across data centres, healthcare,
manufacturing, media, defence, financial services and mission-critical environments. The Company has planned a shift
in TPS from product-led revenue toward platform-led and recurring revenue models, supporting scalable growth over
the medium term.

9. Increasing demand for managed services and recurring revenue models

As enterprise infrastructure becomes more distributed, complex and mission-critical, customers are increasingly looking
for partners who can not only deploy infrastructure but also manage, monitor, optimise and support it over the long term.
This creates an opportunity for Black Box to expand managed services, support services, service desk, staff augmentation,
network operations and Day-2 operations across large enterprise accounts. A higher mix of managed and recurring
services can support improved revenue visibility, deeper customer relationships and better operating leverage.

10. Sustainability-led infrastructure modernisation

Rising power density, energy efficiency requirements, ESG commitments and regulatory expectations are making
sustainability an important consideration in data centres, enterprise networks, campuses and workplace infrastructure.
Customers are increasingly evaluating infrastructure partners on the basis of energy-efficient design, lifecycle optimisation,
responsible procurement, resilient operations and ESG alignment. Black Box can leverage its capabilities in infrastructure
design, deployment, network optimisation, managed services and global technology partnerships to support customers
in building more efficient and future-ready digital environments.

Challenges
The digital infrastructure services market remains fragmented, with local, regional and niche providers competing aggressively in selected service areas, which can create pricing pressure in commoditised engagements.	Mitigation: Black Box continues to focus on differentiated, multi-solution, higher-value engagements, supported by verticalised GTM, execution quality, strategic partnerships and deeper account mining.
AI infrastructure, networking hardware, high-performance compute and data centre components may face lead- time volatility, cost inflation or availability constraints, which can affect project timelines and working capital planning. Gartner has highlighted strong demand and supply constraints in areas such as advanced memory and AI infrastructure.	Mitigation: The Company mitigates this through proactive procurement planning, preferred OEM/distribution partnerships, disciplined project qualification, inventory governance and early engagement with customers on deployment schedules.
3. Talent availability in AI, cloud, cybersecurity and data centre skills
Demand for skilled professionals in AI infrastructure, cybersecurity, cloud networking, data centre deployment and managed services continues to increase globally, creating pressure on hiring, training and retention.	Mitigation: Black Box continues to strengthen its talent engine through domain-led hiring, internal upskilling, certifications, GCC-led delivery leverage, role-based productivity improvement and leadership development.
4. Execution complexity in large-scale, multi-site programmes
Data centre, enterprise networking, healthcare, retail and public infrastructure programmes are becoming larger, more time-sensitive and more complex, often involving multiple locations, stakeholders, OEMs and compliance requirements. JLL notes that supply chain and construction delays continue to affect data centre timelines.	Mitigation: The Company continues to use standardised delivery models, programme governance, PMO discipline, deal qualification processes, safety protocols and local execution teams to improve delivery certainty.
5. Regulatory, cybersecurity and geopolitical complexity
z
Enterprises are operating in an environment of evolving data protection, cybersecurity, digital sovereignty, cross- border trade and compliance requirements. Gartner notes that regulatory volatility and cyber resilience are becoming board-level priorities.	Mitigation: Black Box continues to strengthen compliance governance, cybersecurity practices, contractual risk review, data protection processes, business continuity planning and region-specific operating controls.
Large transformation programmes can experience delays due to customer budget reprioritisation, macroeconomic uncertainty, internal approvals or changing technology roadmaps.	Mitigation: The Company maintains a diversified pipeline across verticals, focus on must-win opportunities, increase recurring managed services revenue, and prioritise customers with long-term strategic infrastructure needs.

Consolidated P&L Statement

( in Crore)
Particulars	FY 2026	FY 2025
Revenue from Operations	6,322	5,967
Gross Profit	1,930	1,794
Gross Profit Margin	30.5%	30.1%
Total Other Expenses	1,360	1,263
EBITDA	570	531
EBITDA Margin	9.0%	8.9%
Other Income	6	5
Depreciation	116	113
EBIT	460	422
Finance Cost	158	145
Share of net profit / (loss) of associate accounted for using the equity method	(0)	-
Exceptional Item Gain/(Loss)	(63)	(66)
Profit before Tax	239	212
Tax	22	7
PAT	218	205
Basic EPS	12.78	12.16

 

Consolidated Balance Sheet
ASSETS
( in Crore)
Particulars	FY 2026	FY 2025
Non-Current Assets
Property, Plant And Equipment	128	102
Right Of Use Asset	283	254
Goodwill	381	335
Other Intangible Assets	92	77
Investment accounted for using the equity method	-	33
Financial Assets	40	23
Tax Assets (net)	48	28
Other Non-Current Assets	87	89
Total Non-Current Assets	1,058	942
Current Assets
Inventories	323	210
Trade Receivables	1,153	567
Cash And Cash Equivalents	540	229
Financial Assets	543	549
Contract Assets	280	219
Other Current Assets	397	357
Sub-Total - Current Assets	3,236	2,130
Total - Assets	4,294	3,072

EQUITY AND LIABILITIES

Particulars	FY 2026	FY 2025
Equity
Equity Share Capital	36	34
Other Equity	1,251	725
Total Equity	1,287	759
Non-Current Liabilities
Borrowing	797	633
Lease Liabilities	263	234
Other Financial Liabilities	100	12
Contract Liabilities	41	41
Other Non Current Liabilities	7	1
Provisions	30	31
Sub-Total - Non-Current Liabilities	1,238	952
Current Liabilities
Borrowing	30	21
Trade Payables	790	556
Lease Liabilities	63	54
Other Financial Liabilities	257	202
Contract Liabilities	535	459
Other Current Liabilities	38	15
Provisions	55	55
Sub-Total - Current Liabilities	1,769	1,362
Total - Equity And Liabilities	4,294	3,072
Revenue by Geography
Location/Geography	FY 2026	FY 2025
India	7%	7%
Europe	10%	9%
MEA	2%	2%
APAC	13%	9%
Latin America	3%	2%
North America	65%	71%
Revenue by Industry
Revenue by Industry	FY 2026	FY 2025
Financial Services	22%	22%
Technology	26%	28%
Healthcare	11%	10%
Commercial and Industrial	10%	12%
Consumer and Public Services	18%	18%
Distributors & Others	13%	10%

Segment Revenue

( in Crore)
Business Segment	FY 2026				FY 2025
	Revenue		Contribution of total revenue (%)		Contribution Revenue of total revenue (%)
GSI	5,326		84%		5,069 85%
TPS	847		14%		764 13%
Consulting	149		2%		134 2%
Total	6,322		100%		5,967 100%
Total Order Backlog (US$ Million)
Order Type		Mar-26		Mar-25 Mar-24
Manage Services + T&M		222		180 144
Maintenance Contract		253		185 134
Projects		296		121 175
Products		21		o 1-1 CO 1-1
Total		792		504 470
Key Ratios ( in Crore)
Particulars		Consolidated
		FY 2026		FY 2025
Revenue from Operations		6,322		5,967 5.9%
EBITDA Margin		9.0%		8.9% 0.1%
Operating Profit / EBIT Margin		7.3%		7.1% 0.2%
Net Profit Margin before exceptional item		4.4%		4.5% -0.1%
Return on Equity (ROE)1		21.3%		33.0% -11.8%
Interest Coverage Ratio		2.52		2.46 2.2%
Debtors Turnover Ratio2		7.35		12.52 -41.3%
Inventory Turnover		8.36		8.06 3.7%
Current Ratio3		1.86		1.59 17.1%
Debt Equity Ratio4		0.64		0.86 25.4%

Note:

1. Return on Equity (ROE/RONW) declined due to equity-based capital infusion in March 2026 increasing the net worth

2. The debtors turnover ratio declined primarily due to a ^586 Crore increase in trade receivables, driven by the
concentration of nearly 60% of Q4 FY 2026 revenue in March 2026 following delays in large transactions and product
deliveries arising from supply chain constraints. Despite the higher year-end receivables, collection quality remained
strong, with the top 200 customers contributing over 80% of revenues and approximately 50% of receivables collected
subsequent to March 31, 2026

3. Current ratio has increased due to cash received on account of equity-based capital infusion

4. Debt equity ratio has improved due to infusion of fresh equity-based capital

Risk Management

Risk area	Risk description	Mitigation measures
Business	O The Company may face economic downturns and industry slowdowns, which can negatively impact revenue and cash flow O Intellectual property infringement threatens competitiveness and may lead to legal disputes	O The Company is continuously monitoring market trends and engaged in quarterly strategy discussions, while dedicated team oversees the pricing O Intellectual property is protected through registration and regular audit
Legal & Statutory Compliances	O There is potential risk of non-compliance with various regulatory laws across different jurisdictions, including the Indian Companies Act and data protection regulations such as GDPR, CCPA, and ITAA. These non-compliances may result in fines, legal actions, and loss of stakeholder trusts O Additionally, there are risks related to non-compliance with Anti-Bribery and Corruption Laws, including the US FCPA and UKBA	O The Company regularly reviews and updates policies to align with regulatory requirements, ensuring active board involvement in compliance oversight O A dedicated compliance team monitors adherence, supported by ongoing audits and the use of technology for regulatory updates O Specific measures are implemented for data protection, anti-bribery, and related party transactions, including employee training and transparent reporting mechanisms
IT & Cyber Security	O The Company may face risks of cybersecurity threats, including hacking, phishing, and ransomware, which can lead to data breaches and financial losses O Data loss from hardware failures or human error can disrupt operations, while risks from theft and inadequate controls over IT assets further increase vulnerabilities O Additionally, in-adequate and robust business continuity plan may result in supply chain disruptions and productivity losses	O The Company regularly reviews and updates the cybersecurity policies, incident response and business continuity plans to effectively address cyber security incidents O Implementation of antivirus software, firewalls, and regular cybersecurity audits are in place to enhance defences O Access controls are enforced to prevent unauthorised data modification, alongside a robust data backup and recovery strategy O Employee trainings on security protocols and reporting procedures are imparted regularly
Human Resource	O The company may face risks around lack of succession planning, which can create leadership gaps and disrupt business continuity O Challenges in attracting and retaining skilled employees may lead to talent shortages and knowledge gaps	O The Company assesses critical leadership roles and the competencies needed for effective succession planning O Talent development programmes, including mentorship and training, are implemented to prepare high-potential employees for future leadership positions O Regular talent reviews ensures potential successors are ready and development plans are adjusted as needed O Competitive benefits are offered to attract top talent and to support employee growth within the organisation

 

Risk area	Risk description	Mitigation measures
Health, Safety and Environment	O The Company may face risks from non- compliance with health and safety regulations, leading to workplace accidents, reputational damage, and increased insurance cost O Additionally, insufficient community engagement and a lack of a sustainable growth strategy may negatively impact relationships with local communities	O The Company promotes a culture of health and safety, encouraging hazard reporting and participation in safety initiatives O Health & safety policies are communicated to all employees, supported by ongoing training and regular audits to address non- compliance O Focus on Corporate Social Responsibility (CSR) aims to support projects for improving health and livelihoods
Operations	O Deviations from customer-required technical specifications can cause project delays and non-compliance with contracts O Breaches of contract or disputes with third parties may disrupt business operations	O There is always a detailed project scope document to outline objectives, deliverables, and timelines, providing a clear framework for projects O A formal change control process is in place to document and assess proposed changes before approval along with regular communication with stakeholders to ensure alignment on project goals O All contracts are reviewed by legal professionals, and clear dispute resolution mechanisms is established
Procurement & Supply Chain Management	O Reliance on select third-party vendors for critical components poses risks if they fail to deliver O Poor quality materials can result in installation failures and damage the Companys reputation O Further, abnormal change requests or delayed delivery by supplier can cause cost escalations and project delays, impacting customer timelines and may lead to liquidated damages	O Regular assessments of vendors is carried out to evaluate their financial stability and compliance with quality standards, supported by detailed contracts outlining expectations and penalties O Contingency plans are created for alternative sourcing and change requests are in approvals are obtained at multiple levels O Delivery lead times are incorporated in the vendor contract and customers are kept informed about the timelines
Finance & Treasury	O The Company may face risks of fluctuations in foreign exchange rates affecting forex- denominated assets and liabilities O Capital constraints may hinder the ability to convert assets into cash or meet short- term obligations O Customers and debtors may fail to fulfil their financial commitments, resulting into losses	O The Company has a natural hedge at a consolidated level due to the global nature of business operations O Maintaining adequate cash reserves and conducting thorough due diligence on customers will help ensure timely collection of receivables O Credit assessments are performed before onboarding customers, with continuous monitoring of their credit limits

r- "

Risk area	Risk description	Mitigation measures
Sales	O High dependency on select customers or particular segment for a notable portion of revenue may impact sales and margins volume	O Practice team continuously explores the market to introduce new products & services to improve the revenue and margin O Fostering strong relationships with a diverse range of customers to enhance loyalty and to reduce the risk of losing key accounts is part of overall sales strategy O Customer satisfaction survey conducted on annual basis and reported to the board. Financial health of key customers are assessed regularly
Geopolitical Riks	O Geopolitical tensions such as wars, tariffs, sanctions, etc., may affect the companys operations in global markets	O Monitor the geopolitical risk periodically O Develop a crisis management plan that includes protocols for responding to geopolitical events, including communication strategies for stakeholders O Attempt to diversify suppliers and partners across different regions to mitigate the impact of tariffs or sanctions on specific countries
SOPs, Policies and Procedures	O Non-compliance to SOPs and policies may lead to inconsistent practices, increase in errors, inefficiency, etc.	O Periodically review and update the SOPs for all the business processes within the organisation based on the learning from the past instances O Ensure that revised version of the SOPs is accessible to all employees over the intranet to ensure relevance and compliance O Provide training for employees on the importance of SOPs and policies and how to apply them

Human Resources

Building a Future-Ready Organisation

At Black Box, our people are the foundation of sustainable
growth, innovation, operational excellence, and long-
term stakeholder value. As a global technology solutions
organisation operating across diverse markets, we
recognise that our ability to deliver exceptional customer
outcomes is directly linked to the strength, capability, and
engagement of our workforce.

Our People and Organisation Strategy is focussed on
building a future-ready, high-performing organisation
by strengthening leadership capability, enhancing
workforce productivity, accelerating skill development,
and fostering a culture of accountability, collaboration,
and continuous learning. Through targeted investments in
talent, organisational effectiveness, employee experience,
learning, and culture, we continue to create a resilient
and agile workforce equipped to support our business
transformation and growth ambitions.

Strengthening Organisational Effectiveness

Organisational effectiveness remains a key enabler of
business performance and transformation. We continue
to align organisational structures, leadership capabilities,
workforce planning, and decision-making processes with
our evolving business priorities.

Through leadership enhancement, succession planning,
workforce optimisation, performance management
excellence, and data-driven people insights, we are
improving organisational agility, accountability, and
productivity. These initiatives enable faster execution,
stronger governance, and greater responsiveness to
customer and market demands while creating a scalable
foundation for future growth.

Attracting and Developing Critical Talent

Talent continues to be a strategic differentiator for
Black Box. Our talent acquisition strategy focusses on
attracting high-calibre professionals and leaders with
expertise across technology, digital infrastructure, services
delivery, customer engagement, and business operations.

In addition to external hiring, we are building scalable talent
pipelines to support future growth and evolving customer

requirements. Strategic programmes such as GT100 and
Talent-on-Tap are designed to create a ready pool of
trained professionals across high-demand areas including
data centres, cybersecurity, enterprise networking,
managed services, and AI-enabled operations. These
initiatives help improve deployment-readiness, reduce
reliance on reactive hiring, accelerate time-to-productivity,
and strengthen workforce agility in supporting large
customer programmes.

Supported by centralised resource management,
labour forecasting, and skills-based workforce planning,
Black Box is better positioned to align talent availability
with business demand, optimise utilisation, and ensure
timely execution of strategic projects. By building robust
talent pipelines and strengthening leadership succession
plans, we are ensuring that the organisation remains
equipped with the skills and capabilities required to drive
innovation and execute business strategy.

Elevating Employee Experience and Engagement

We are committed to creating an environment where
employees can thrive, grow, and contribute meaningfully to
organisational success. Our employee experience strategy
focusses on trust, inclusion, well-being, recognition, career
development, and continuous feedback.

Through structured onboarding programmes, employee
listening initiatives, leadership connect forums,
recognition platforms, and career growth opportunities,
we continue to strengthen employee engagement and
organisational commitment.

Black Boxs people-first culture was further reinforced
through its continued recognition as a Great Place
To Work-Certified™ organisation across multiple
geographies. This reflects the strength of its workplace
culture, employee engagement practices, and leadership
commitment across its global operations. Based
on structured employee feedback and the globally
recognised Trust Index™ methodology, this certification
validates our focus on building a workplace anchored in
trust, collaboration, inclusion, capability development, and
employee well-being.

For Black Box, where customer success is delivered
through the expertise and commitment of field engineers,
project managers, solution architects, managed services
professionals, sales teams, support functions, and shared-
service specialists, this recognition reinforces our ability to
attract, retain, and develop top talent in highly competitive
skill domains. It also strengthens our employer brand and
supports our long-term talent strategy in critical growth

areas such as cybersecurity, digital infrastructure, managed
services, AI-enabled operations, and data centre solutions.

By actively listening to employee feedback and translating
insights into action, we are enhancing engagement,
improving retention, and creating a workplace where
people feel valued and connected to our purpose.

Building Future Skills and Leadership Capability

As technology, digital transformation, and artificial
intelligence reshape the business landscape,
continuous learning remains critical to sustaining
competitive advantage.

Black Box remains committed to building a future-
ready workforce through comprehensive learning and
development initiatives focussed on technical, leadership,
commercial, and digital capabilities.

Our learning ecosystem combines structured leadership
programmes, capability-building workshops, professional
certifications, personalised learning pathways, and
continuous development opportunities. These investments
strengthen workforce-readiness, enhance internal
mobility, and support long-term career growth.

Fostering a High-Performance Culture

Culture remains a powerful driver of business success. At
Black Box, we are intentionally shaping a culture anchored
in accountability, customer centricity, collaboration,
innovation, continuous learning, and execution excellence.

Through leadership role-modelling, recognition
programmes, manager effectiveness initiatives, and
values-based decision-making, we continue to strengthen
cultural alignment across the organisation. Our goal is to
create an environment where employees are empowered to
perform at their best while embracing diverse perspectives
and contributing to collective success.

This culture of performance and collaboration enables
stronger employee engagement, higher productivity,
improved customer outcomes, and sustainable
competitive advantage.

Looking Ahead

Black Box remains committed to building a future-
ready organisation that can thrive in an increasingly
complex and rapidly evolving business environment. Our
continued investments in leadership, skills, organisational
effectiveness, employee experience, and culture are
strengthening our ability to deliver sustainable growth,
enhance productivity, and create long-term value for
customers, employees, shareholders, and the communities
we serve.

Our people-first approach continues to enable sustainable
growth, accelerate innovation, strengthen customer
relationships, and create enduring value for our customers,
employees, shareholders, and communities worldwide.

Internal Control Systems

Black Box has established an internal control framework
that is commensurate with the size, scale and complexity
of its operations. The framework is designed to support
orderly and efficient conduct of business, safeguard
assets, maintain accuracy and reliability of financial and
operational records, ensure compliance with applicable
laws and regulations, and provide reasonable assurance
on the effectiveness of processes across the organisation.

The Companys internal control environment is supported
by documented policies, defined authority levels, standard
operating procedures, periodic management reviews and
oversight by the Audit Committee and the Board. Internal
audits are carried out using a risk-based approach, and
observations are reviewed by management for corrective
action and process improvement. The Audit Committee
periodically reviews internal audit findings, financial
reporting controls, compliance matters, related party
transactions and key risk areas.

Over the past few years, Black Box has strengthened
process standardisation and technology-led governance
across functions. The Company consolidated large number
of legacy ERP systems into a unified enterprise stack
comprising SAP, Salesforce and ServiceNow, supporting
improved visibility, workflow management, process
discipline and auditability across global operations. This has
enabled better integration across sales, service, finance,
operations and customer platforms, while supporting more
consistent reporting and governance across geographies.

The Companys internal systems also support project
governance, delivery discipline and operational
control. Standardised delivery models, defined project
management norms, solutioning standards, billability
dashboards, labour forecasting, predictive project controls
and structured review mechanisms are used to monitor
execution quality and improve operating efficiency.
These controls are particularly relevant for large multi-site
deployments, managed services engagements and data
centre infrastructure projects.

Risk management is an integral part of the internal control
framework. The Company monitors strategic, operational,
financial, regulatory, cybersecurity, compliance and
reputational risks through formal governance structures.
Business continuity planning, cybersecurity policies, access
controls, data backup and recovery practices, compliance
monitoring and incident-response processes support
operational resilience across locations.

The Company also continues to strengthen compliance,
ethics and governance practices across its global
operations. Policies relating to code of conduct,
whistleblower mechanism, risk management, related party

transactions and regulatory compliance are supported by
, periodic reviews and reporting. The Companys internal

! controls are reviewed on an ongoing basis and enhanced

- wherever required to reflect changes in business scale,
j regulatory requirements, technology platforms and
j operating complexity.

; Overall, Black Boxs internal control systems provide a sound
foundation for governance, compliance, financial reporting
and operational discipline. While no control system
can eliminate all risks fully, the Companys framework is
designed to identify, assess, monitor and mitigate risks
in a timely manner, while supporting scalable growth,

l customer confidence and long-term stakeholder value.

Cautionary Statement

This Management Discussion and Analysis ("MD&A")
may contain statements relating to the Companys
future business prospects, plans, objectives, estimates,
expectations, projections, outlook and strategies, which may
constitute forward-looking statements within the meaning
^; of applicable laws and regulations. Such statements are
based on managements current assessment, assumptions
^; and expectations regarding future events, business
environment, industry trends, economic conditions and
the Companys operating performance.

, Forward-looking statements are inherently subject to risks,
uncertainties and assumptions, many of which are beyond
the Companys control. Actual results, performance or

- achievements may differ materially from those expressed or

l implied in such statements due to various factors, including

: changes in macroeconomic conditions, geopolitical

i developments, industry dynamics, technology trends,

customer demand, competitive environment, regulatory
changes, currency movements, supply chain conditions,
. talent availability and other internal or external factors.

The Company does not undertake any obligation to publicly
update, revise or modify any forward-looking statements,
whether as a result of new information, future developments

or otherwise, except as may be required under applicable
law. The risks and uncertainties discussed in this report are
no exhaustive and should not be construed as a complete
assessment of all factors that may affect the Companys
business, financial condition or results of operations.

Readers are advised not to place undue reliance on forward-
looking statements and to exercise their own judgement
, while evaluating the information contained in this MD&A.
Investors and stakeholders are encouraged to consult their
, own advisors before making any decision based on the
I information presented herein.