Data Patterns has completed the execution of the share purchase agreement to acquire a 100% stake in ST Advanced Composites Private Limited. The transaction, finalized on August 25, 2026, involves a total consideration of ₹10 crore. This move establishes ST Advanced Composites as a wholly owned subsidiary of the Chennai-based firm.

The deal structure comprises two distinct components aimed at facilitating the transfer of ownership and stabilizing the target company’s balance sheet. Data Patterns paid ₹1.50 crore to the promoters of ST Advanced Composites for the acquisition of equity shares. The remaining ₹8.50 crore was extended as a loan to the target company specifically to enable it to settle its existing liabilities.

Transaction Details

The acquisition is subject to the fulfillment of customary conditions precedent and other terms agreed upon in the share purchase agreement. Upon completion, Data Patterns holds 100% of the equity shares on a fully converted and diluted basis.

What the Numbers Show

The capital structure of this acquisition reveals a significant dependency on debt financing relative to equity investment. Of the total ₹10 crore consideration, 85% was deployed as a loan facility rather than direct equity payment. This suggests that the primary immediate financial requirement for the target entity is liability clearance rather than promoter exit liquidity, indicating that the acquired business may carry substantial existing obligations that needed resolution prior to full integration.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Prakash R, Company Secretary and Compliance Officer of Data Patterns, signed the communication filed with the National Stock Exchange of India Limited and BSE Limited.

[WHAT HAPPENED]

Data Patterns has won a confirmed work order worth Rs 585.76 crore from Bharat Electronic Limited (Bel) for the supply of radar electronics. The order was disclosed on August 21, 2026, with execution timelines defined as per the contract terms.

[ORDER IN FINANCIAL CONTEXT]

This confirmed order of Rs 585.76 crore is significant for Data Patterns , particularly given the absence of other disclosed wins in the recent past. As the trailing twelve-month revenue in the provided TTM P&L snapshot is Rs 0.0 crore, the book-to-bill ratio cannot be computed from that specific metric. However, comparing against the latest available annual revenue of Rs 113.70 crore from FY18, the order value is approximately five times that figure. The total disclosed order book, consisting solely of this single order, represents a substantial backlog relative to historical earnings scales. Note that the "Total Disclosed Order Book" figure sums exactly the same last 3 fiscal quarters shown in the order track record table below (sum of the 1 order disclosed across the last 3 fiscal quarters shown in the table below).

[COMPANY ORDER TRACK RECORD]

There are no previous order disclosures found for Data Patterns in the last three fiscal quarters. Consequently, no quarterly inflow table can be constructed. This single order stands alone without a visible trend of accelerating or decelerating inflow velocity from recent history. The value of Rs 585.76 crore is consistent with major defense contracts but lacks comparative context from prior company filings in this window.

[EXECUTION AND REVENUE QUALITY]

The following table presents the most recent consolidated financial performance data available from the audited FY18 accounts, as more recent quarterly revenue data was not provided in the input.

With only annual data available, it is not possible to assess quarterly execution stress or margin trends in real-time. The FY18 operating profit margin of 15.88% provides a baseline for expected profitability on new contracts, assuming similar cost structures apply to the radar electronics supply.

[REVENUE GROWTH - ORDER WINS TRANSLATING TO REVENUE]

As Data Patterns has sustained order wins, with this single major disclosure in the current window, its annual revenue has grown from Rs 100.90 crore in FY15 to Rs 113.70 crore in FY18, representing a YoY growth of +2.1% based on the latest annual data. The growth trajectory shows volatility, with a sharp decline in FY16 followed by recovery in FY17 and FY18.

[WORKING CAPITAL AND EXECUTION CAPACITY]

Data Patterns reports a current ratio of 1.83x and total liabilities to equity of 1.00x based on FY18 consolidated balance sheet figures. These metrics suggest sufficient short-term liquidity to fund working capital requirements for the new order. Operating cashflow stood at Rs 31.80 crore in FY18, with free cashflow at Rs 29.40 crore, indicating that the business model historically converts operations into cash efficiently. It is important to monitor whether this cash generation capacity scales to support the larger order volume.

[WHAT TO WATCH]

• Execution rate: Quarterly revenue run-rate vs total backlog. Watch for acceleration or slowdown as the radar electronics supply commences.
• OPM trajectory on new orders: Compare realized margins on this Bel contract against the historical average OPM of 15.88% to assess margin quality.
• Client concentration: This single order from Bharat Electronic Limited accounts for 100% of the currently disclosed order book, highlighting high dependency on one client.
• Revenue recognition timing: Monitor when revenue from this Rs 585.76 crore order begins to flow into quarterly results, given the "as per contract" timeline.

[KEY OBSERVATIONS]

• Valuation check (as of 21 Aug 2026): P/E of 98.2x against ROCE of 11.06%. At the time of this article, valuation was pricing in execution improvement not yet visible in return ratios. (P/E is price-derived and will change; ROCE is from audited financials)
• Backlog signal: Book-to-bill cannot be calculated from TTM revenue of Rs 0.0 Cr, but the order is ~5x the FY18 annual revenue. At this level, execution capacity becomes the binding constraint.
• Cash conversion: Operating cashflow of Rs 31.80 crore in FY18; backlog conversion to cash should be monitored as new orders execute.