Data Patterns India Limited Receives Credit Rating Upgrade from ICRA

Data Patterns (India) Limited has received an upgraded credit rating from ICRA Limited, as communicated to the stock exchanges. ICRA has upgraded Data Patterns' long-term credit rating to A- (Stable) from A- (Positive), while reaffirming the short-term rating at A1 for total bank facilities worth ₹775.00 crores.

Credit Rating Details

ICRA Limited has made the following rating changes for Data Patterns' bank facilities:

Facility Type	Amount	Previous Rating	Current Rating	Action
Long-term Fund-based Cash Credit	₹50.00 crores	ICRA A- (Positive)	ICRA A- (Stable)	Upgraded
Short-term Non-fund based Bank Guarantee	₹725.00 crores	ICRA A1	ICRA A1	Reaffirmed
Total Bank Facilities	₹775.00 crores

The most significant development is the upgrade of the long-term rating, where ICRA has revised the outlook from Positive to Stable while maintaining the A- grade. This change indicates that the rating agency views the company's financial position as having stabilized at the current level.

Bank Facility Distribution

The rated bank facilities are distributed across multiple banking partners:

Long-term Facilities (₹50.00 crores)

Rating: ICRA A- (Stable)
Facility Type: Cash Credit

Short-term Facilities (₹725.00 crores)

The short-term bank guarantee facilities are spread across major banks:

Bank	Amount
ICICI Bank Limited	₹90.00 crores
State Bank of India	₹100.00 crores
Other Banks	₹535.00 crores

This credit rating upgrade reflects an improvement in Data Patterns' creditworthiness and financial stability, which may positively impact the company's ability to secure financing and manage its financial obligations.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.58%	-1.23%	-13.05%	-8.53%	+6.84%	+242.13%

Data Patterns , a leading defense technology company, has reported robust financial results for the first half of fiscal year 2026, with revenue more than doubling year-on-year to INR 407.00 crores. The company's performance was driven by strong execution across multiple programs, including a strategic INR 180.00 crore contract.

Financial Highlights

Revenue for H1 FY26 reached INR 407.00 crores, more than doubling compared to the same period last year
EBITDA stood at INR 100.00 crores
PAT (Profit After Tax) was reported at INR 75.00 crores

Order Book and New Inflows

Data Patterns maintains a healthy order book of approximately INR 1,300.00 crores, positioning the company well for continued growth in defense systems. The company secured fresh order inflows of INR 351.00 crores during H1 FY26, including significant orders from BrahMos and ECIL (Electronics Corporation of India Limited).

Strategic Contract Execution

A key highlight of the period was the execution of a strategic contract worth INR 180.00 crores. While this contract was taken at a competitive price considering long-term opportunities, it temporarily impacted the company's margins. However, management asserts that the core profitability remains healthy.

Export Success and Future Prospects

Data Patterns has made significant strides in the export market. The company's Transportable Precision Approach Radar (TPAR), exported to a European customer, has successfully completed client acceptance. This achievement is expected to create positive traction in international markets.

Management Commentary

During the earnings call, Mr. S. Rangarajan, Chairman and Managing Director of Data Patterns, stated, "We delivered strong revenue growth during Q2 and H1 FY '26, with top line more than doubling year-on-year at INR 407.00 crores compared to H1 of last year, along with robust growth in EBITDA and profits."

He further added, "We expect more high-value orders in the coming quarters as our technology and products gain wider acceptance among customers."

Future Outlook

Data Patterns is transitioning from a subsystem supplier to a full systems integrator, designing complete radar and Electronic Warfare (EW) systems with in-house expertise. The company continues to focus on investing in people and infrastructure to cater to future expansion.

With a healthy order pipeline and strong execution visibility, Data Patterns remains confident in achieving its earlier guidance on revenue and margins. The company is also exploring co-development opportunities with large multinational corporations to address global market requirements more efficiently.

As Data Patterns continues to strengthen its position in the defense technology sector, investors and industry observers will be keenly watching its progress in securing high-value contracts and expanding its global footprint.