Data Patterns (India) Limited reported a 16.8% year-on-year increase in revenue from operations to ₹116.03 crore for the quarter ended June 30, 2026, but saw its net profit decline by 13.5% to ₹22.06 crore. The divergence between top-line growth and bottom-line contraction highlights rising operational costs, particularly in employee benefits and other expenses, which outpaced revenue gains during the period. Despite the quarterly profit dip, the company’s total order book stood at ₹2,654 crore, providing significant revenue visibility for future quarters.

The Board of Directors approved the unaudited financial results at a meeting held on July 30, 2026. The results were reviewed in accordance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Deloitte Haskins & Sells, the statutory auditors, issued an unmodified limited review report on the financial statements.

Financial Performance

Revenue from operations stood at ₹116.03 crore in Q1FY27, compared to ₹99.33 crore in the same quarter last year. Other income decreased to ₹7.31 crore from ₹10.55 crore in Q1FY26. Total income for the quarter was ₹123.34 crore.

Total expenses rose to ₹93.86 crore from ₹75.93 crore in Q1FY26. Key expense drivers included:

• Cost of materials consumed: ₹30.73 crore (down from ₹57.16 crore in Q1FY26)
• Employee benefits expenses: ₹42.53 crore (up from ₹36.38 crore in Q1FY26)
• Other expenses: ₹17.61 crore (up from ₹10.77 crore in Q1FY26)

Profit before tax was ₹29.48 crore, down from ₹33.95 crore in Q1FY26. After accounting for a tax expense of ₹7.42 crore, profit for the period was ₹22.06 crore, compared to ₹25.50 crore in the previous year's corresponding quarter. Earnings per share (basic and diluted) were ₹3.94, down from ₹4.55 in Q1FY26.

The following table summarises the key financial metrics for the quarter:

Strategic Developments and Order Book

Data Patterns acquired a 100% stake in ST Advanced Composites Pvt. Ltd. (STAC) for ₹10 crore during Q1FY27 to strengthen vertical integration and composite manufacturing capabilities. This acquisition aims to reduce dependence on external vendors and improve control over quality and timelines for radar and defence electronics programs.

The company’s order book as of June 30, 2026, stood at ₹2,654 crore, including orders received and those negotiated but pending receipt. In Q1FY27 alone, the company received orders worth over ₹226 crore, including a ₹449 million development contract for avionics from the Ministry of Defence (MOD) and a ₹294 million development contract for radar from DRDO. Management expects an additional ₹2,000 crore in order inflow in FY27 beyond what has already been received or negotiated.

What the Numbers Show

While revenue growth of 16.8% indicates strong demand for the company's defence electronics products, the margin compression is notable. The EBITDA margin contracted to 27.14% from 32.3% year-on-year, reflecting the impact of higher fixed and administrative costs on profitability. Employee benefits expenses grew by 16.9%, nearly matching revenue growth, while other expenses surged by 63.5%. Although cost of materials consumed dropped significantly from ₹57.16 crore to ₹30.73 crore, the overall expense base expanded faster than revenue, squeezing both EBITDA and net profitability. This suggests that operational efficiencies have not yet fully offset the higher costs incurred during the quarter.

Outlook and Cash Position

Chairman & Managing Director Srinivasagopalan Rangarajan stated that the quarter met expectations despite modest revenue due to temporary delays in customer approvals. The company remains focused on building full systems using in-house IP and reusable building blocks. Data Patterns plans an additional ₹150 crore capex over the next two years to expand infrastructure. As of June 30, 2026, the company held ₹4,659 crore in cash, bank balances, and investments, maintaining a net debt-free status. Unutilized QIP proceeds stood at ₹26.25 crore, primarily allocated to product development and setting up an EMI-EMC Testing Facility.

Data Patterns (India) Limited will host an earnings conference call on July 31, 2026, at 12:30 PM IST to discuss its financial results for the quarter ended June 30, 2026. The announcement was made on July 28, 2026, from Chennai, providing investors with a platform to engage with management regarding the company's performance in Q1FY27. The disclosure is made pursuant to Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company notified both the National Stock Exchange of India Limited and BSE Limited of the upcoming event. Prakash R, the Company Secretary and Compliance Officer, digitally signed the intimation, ensuring regulatory compliance for market participants.

Conference Call Participants

The earnings call will feature senior leadership from Data Patterns (India) Limited. The following executives are confirmed to participate in the discussion:

Dial-In and Registration Details

The conference call is hosted by Go India Advisors. Participants are advised to pre-register to avoid wait times and join using a Diamond Pass. Investors should dial in at least 5–10 minutes prior to the scheduled start time to ensure connectivity. The key details for joining the call are as follows:

For further information, investors may contact Prayasi Patel or Sheetal Khanduja at Go India Advisors via email at prayasi@goindiaadvisors.com or sheetal@goindiaadvisors.com respectively. The registration link provided in the original notice allows for direct access to the joining instructions.