Data Patterns (India) Limited , a strategic defense and aerospace electronics systems provider, has announced its financial results for the first quarter of fiscal year 2026, along with ambitious growth plans for the coming years.

Q1 FY26 Financial Highlights

The company reported a total income of ₹109.90 crore for Q1 FY26, compared to ₹116.40 crore in the same quarter last year, marking a 5.6% decrease. The revenue from operations stood at ₹99.33 crore, down 4.6% from ₹104.10 crore in Q1 FY25.

Data Patterns' Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) for Q1 FY26 was ₹32.10 crore, lower than the ₹37.20 crore reported in Q1 FY25. The company's Profit After Tax (PAT) for the quarter was ₹25.50 crore, representing 25.7% of the operating revenue, compared to ₹32.80 crore in the same period last year.

Order Book and Future Outlook

Despite the slight dip in quarterly results, Data Patterns maintains a strong order book position:

• Order book as of June 30, 2025: ₹814.00 crore
• Including orders received and negotiated as of the reporting date: ₹1,077.00 crore

The company has set an ambitious revenue target of ₹2,000-2,400 crore over the next 2-3 years, signaling confidence in its growth trajectory.

Investment and Expansion Plans

To support its growth objectives, Data Patterns plans to invest ₹150.00 crore in technology and capital expenditure. This investment is expected to enhance the company's capabilities and capacity to meet the increasing demand in the defense and aerospace electronics sector.

Margin Expectations

While pursuing aggressive growth, Data Patterns aims to maintain healthy EBITDA margins of 35-40%. This target demonstrates the company's commitment to profitability alongside expansion.

Strong Pipeline

Data Patterns reports a robust order pipeline valued at ₹2,000-3,000 crore, indicating significant potential for future revenue growth and business expansion.

Management Commentary

Srinivasagopalan Rangarajan, Chairman & Managing Director of Data Patterns, commented on the company's performance: "The quarter has met our expectations. Order inflow has been encouraging since the start of the financial year, with over ₹320.00 crore in orders received so far, and more in the pipeline. While revenue for the quarter was modest, primarily due to temporary delays in customer approvals, these are expected to normalize in the coming quarters. We remain confident of delivering our year's targets."

Rangarajan also highlighted the company's focus on new product developments, stating, "Our continuous focus on new product developments have yielded products of international quality. We are optimistic that these products will soon be tested and potentially lead to bigger contracts."

Conclusion

Despite a slight decrease in Q1 FY26 results, Data Patterns maintains an optimistic outlook, backed by a strong order book and ambitious growth plans. The company's strategic investments in technology and capital expenditure, coupled with its focus on maintaining healthy margins, position it well for future growth in the defense and aerospace electronics sector. Investors and industry observers will be keenly watching how Data Patterns executes its expansion strategy to achieve its ambitious revenue targets in the coming years.

Data Patterns Ltd. , a prominent player in the defense sector, saw a significant transaction as the Government of Singapore reduced its stake in the company. The move comes on the heels of a recent surge in the company's stock price.

Transaction Details

The Government of Singapore offloaded 2.85 lakh shares, representing approximately 0.5% of Data Patterns Ltd. The shares were sold at ₹2,728.56 per share, resulting in a total transaction value of ₹78.00 crore.

Company Outlook

Despite the stake reduction by the Government of Singapore, Data Patterns remains optimistic about its future prospects. The company has set its sights on increased order inflow for the fiscal year 2026, indicating a positive outlook for its business operations in the coming years.

Analyst Perspective

Nuvama brokerage continues to maintain a bullish stance on Data Patterns Ltd. The brokerage has reiterated its position on the company as a top pick in the defense sector. Nuvama has set a price target of ₹3,700.00 for Data Patterns' stock, suggesting potential upside from the current trading levels.

Market Implications

The sale by the Government of Singapore following the recent stock price appreciation could be interpreted in various ways by market participants. However, it's important to note that such transactions by large institutional investors are common and may be part of their portfolio rebalancing strategies.

Data Patterns Ltd. continues to attract attention in the defense sector, with its focus on future order inflows and positive analyst recommendations. Investors and market watchers will likely keep a close eye on the company's performance and any further developments in its order book.