Data Patterns Reports Strong Q2 Revenue Growth, EBITDA Margin Declines
Data Patterns (India) Limited reported a significant increase in Q2 revenue, rising 238% year-over-year to ₹307.46 crore. However, the EBITDA margin declined from 37.70% to 22.30%. Net profit grew by 62.45% to ₹49.19 crore. The company maintains a strong order book of ₹673.60 crore, with management expressing confidence in achieving stronger margins for the full year despite the delivery of a low-margin strategic contract in Q2.

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Data Patterns (India) Limited , a key player in the defense electronics sector, has reported a substantial increase in revenue for the second quarter, accompanied by a decline in EBITDA margin. The company's financial results highlight significant growth in operations, albeit with some pressure on profitability.
Revenue Surge
Data Patterns witnessed a remarkable surge in revenue for Q2. The company's revenue from operations jumped to ₹307.46 crore, marking a significant increase from ₹91.02 crore in the same quarter of the previous year. This represents a year-over-year growth of approximately 238%, indicating strong market demand for the company's defense electronic solutions.
Profitability Metrics
Despite the impressive revenue growth, the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin saw a decline:
| Metric | Q2 Current | Q2 Previous | Change |
|---|---|---|---|
| EBITDA | ₹68.50 crore | ₹34.30 crore | +99.71% |
| EBITDA Margin | 22.30% | 37.70% | -1540 bps |
The EBITDA increased by 99.71% year-over-year to ₹68.50 crore. However, the EBITDA margin contracted from 37.70% in the previous Q2 to 22.30% in the current Q2, a decrease of 1540 basis points.
Net Profit
Data Patterns reported a net profit of ₹49.19 crore for the current Q2, up from ₹30.28 crore in the corresponding quarter of the previous year, representing a growth of about 62.45%.
Order Book and Future Outlook
As of September 30, Data Patterns maintained a robust order book of ₹673.60 crore, providing visibility for future revenue. The company's diverse order book spans across various product categories including Radar, Avionics, and Electronic Warfare systems.
Management Commentary
Mr. Srinivasagopalan Rangarajan, Chairman and Managing Director of Data Patterns, commented on the quarter's performance: "We are pleased to report solid results for the quarter and half-year ended September 30. These financials reflect our strong execution capabilities. While our gross margin for the quarter was lower than usual due to the delivery of a low-margin strategic contract, we remain confident about achieving a stronger margin for the full year."
He further added, "Our order inflow in the first half of the current financial year is in line with expectations, and our order book includes two significant orders for the EW products developed with QIP funds. We are optimistic that these initiatives will soon translate into high-value contracts."
Conclusion
Data Patterns' Q2 results demonstrate the company's ability to significantly grow its revenue in the defense electronics sector. However, the decline in EBITDA margin suggests challenges in maintaining profitability levels amidst rapid growth. The company's strong order book and management's optimistic outlook indicate potential for continued growth, while efforts to improve margins will be crucial for long-term financial health.
Investors and analysts will likely keep a close eye on how Data Patterns manages its growth trajectory while working to enhance profitability in the coming quarters.
Historical Stock Returns for Data Patterns
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +7.05% | +14.35% | +9.99% | +20.27% | +37.61% | +295.89% |




































