Tariff-related delays persisting beyond Q2
Client-driven delays in equipment procurement due to tariff uncertainty may extend beyond Q2, impacting revenue recognition and growth trajectory.
BBOX / bear-case history
Track the concerns that keep returning.
Black Box · risk themes across the available quarters.
Research layer active
Bear-case history
Risks carried through the record.
high
Revenue growth dependency on large deal closures
Achieving $1 billion bookings and 15-20% sequential revenue growth hinges on closing several large deals ($10M+), which have long lead times and uncertain timing.
Exceptional items may persist beyond FY26
While management expects exceptional items of INR 40-50 Cr for FY26 to be the last, further restructuring could arise from macroeconomic changes.
Supply chain constraints delaying execution
Industry-wide shortages of fiber, GPUs, and racks have pushed revenue recognition to FY27; normalization timeline uncertain.
Revenue guidance miss and credibility gap
Analysts questioned repeated guidance misses and the gap between order booking run-rate ($230M/quarter) and $2B revenue target.
Dependence on large, lumpy data center orders
Order book growth relies on a few large hyperscaler projects; any delay or loss could impact revenue visibility.
Exceptional items persisting
Exceptional expenses related to severance and lease restructuring expected to continue for at least two more quarters, impacting PAT.