By Chaitanya | BBA Finance Graduate with over 6 years of experience in the stock market and finance.
Shares of Data Patterns (India) Limited, a prominent player in the defence and aerospace electronics sector, have witnessed a remarkable surge of approximately 225% over the past three years. This impressive performance highlights the company’s growth trajectory in a crucial industry. However, the stock recently experienced a notable dip, falling around 13% from its peak, with an 8% drop on August 8, 2025, following the announcement of its Q1 FY26 financial results. While the latest quarterly figures show a year-on-year decline, the company’s robust order book and ambitious future plans paint a promising long-term picture for Data Patterns India.
Q1 FY26 Performance: A Closer Look
The first quarter of the financial year 2026 presented a mixed bag for Data Patterns. The company reported a total income of ₹109.90 crore, which is a 5.6% decrease from the same period last year. Revenue from operations also saw a slight dip, coming in at ₹99.33 crore, down about 4.6% year-on-year. This slowdown also impacted profitability, with Profit After Tax (PAT) falling by 22.23% to ₹25.50 crore compared to ₹32.79 crore in Q1 FY25. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) stood at ₹32.10 crore, marking a 13.7% decline. Consequently, the EBITDA margin narrowed to 32% from 35.7% year-on-year, and the PAT margin was approximately 25.7% of operating revenue. These figures, as per company disclosures, indicate a challenging quarter for the defence electronics firm.
| Metric | Value (₹ Crore) | Year-on-Year Change |
|---|---|---|
| Total Income | 109.90 | -5.6% |
| Revenue from Operations | 99.33 | -4.6% |
| EBITDA | 32.10 | -13.7% |
| Profit after Tax (PAT) | 25.50 | -22.23% |
| Profit before Tax (PBT) | 33.95 | Not specified |
| EBITDA Margin | 32% | Down from 35.7% |
| PAT Margin | 25.7% | Not specified |
Building on a Strong FY25 Foundation
Despite the recent quarterly challenges, it’s crucial to remember the company’s strong performance in the previous financial year. For FY25, Data Patterns reported an impressive total revenue of ₹755 crore, a significant 33% increase from ₹566 crore in FY24. Revenue from operations grew by 36% to ₹708 crore. EBITDA rose by 24% to ₹275 crore, and Profit After Tax (PAT) saw a healthy 22% growth, reaching ₹222 crore. Although the PAT margin for FY25 slightly dropped to 31% from 35% in FY24, the overall growth trajectory was robust, reflecting strong operational performance throughout the year. The company’s basic Earnings Per Share (EPS) for FY25 stood at ₹39.62.
| Metric | Value (₹ Crore) | Growth over FY24 |
|---|---|---|
| Total Revenue | 755 | +33% |
| Revenue from Operations | 708 | +36% |
| EBITDA | 275 | +24% |
| Profit before Tax (PBT) | 295 | +22% |
| Profit after Tax (PAT) | 222 | +22% |
| PAT Margin | 31% | Down from 35% |
A Future Fuelled by Defence and Ambitious Targets
The optimism surrounding Data Patterns India largely stems from its robust order book and a promising pipeline. The current order book stands at a healthy ₹814 crore, which expands to ₹1,077 crore when including negotiated orders. Looking further ahead, the company has an impressive order pipeline ranging from ₹2,000 crore to ₹3,000 crore, indicating significant potential for future revenue generation. The management has set an ambitious revenue target of ₹2,000-2,400 crore for the next 2-3 years, aspiring to achieve EBITDA margins between 35-40%. To support this growth, Data Patterns plans to invest ₹150 crore in technology and capital expenditure. This strategic investment underscores their commitment to capitalising on opportunities within India’s growing defence and aerospace sectors.
Navigating Stock Volatility and Analyst Projections
While the 3-year stock performance has been stellar, indicating a strong run for long-term investors, the recent 13% decline from its peak highlights market reactions to quarterly results. On July 25, 2025, the stock closed at ₹2,677.40, down 3.71% for the day. Despite this, market analysts remain largely optimistic. According to recent forecasts, the stock price is projected to increase by 16.97% over the next three months, with a price range between ₹3,086.07 and ₹4,044.73. The company’s market capitalisation currently stands at ₹13,212.22 crore. Some metrics, such as a high debtors period of 307 days and a slight decrease in promoter holding by 3.21% over the last three years, are points for investors to monitor. However, these factors are often balanced against the larger growth narrative in the defence industry.
In conclusion, while Data Patterns (India) Limited faced some headwinds in Q1 FY26 with declining income and profits, its strong underlying fundamentals, impressive order book, and ambitious future plans continue to instil confidence. The company’s strategic focus on the defence and aerospace sector, coupled with planned investments, positions Data Patterns India for sustained long-term growth. Investors and market watchers will be keenly observing how the company leverages its pipeline to achieve its ambitious revenue and margin targets in the coming years.
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