Data Patterns Q1 FY27 Results: Revenue Grows 17%, Order Book Remains Strong at ₹927.7 Crore

What Happened ?

Data Patterns Q1 FY27 Results reflected healthy revenue growth driven by ongoing defence programs, although profitability softened because customer approvals delayed project execution during the quarter. Management indicated that these delays are temporary and expects normalisation in the coming quarters.

The company continued investing aggressively in indigenous defence technologies, strengthened its manufacturing ecosystem through the acquisition of ST Advanced Composites Pvt. Ltd., expanded its export strategy, and maintained a strong order pipeline supported by India’s growing focus on domestic defence manufacturing.

key details

Q1 FY27 Financial Performance:

• Revenue increased 16.8% YoY to ₹116 crore.
• Gross profit rose to ₹91.5 crore.
• EBITDA stood at ₹31.4 crore.
• Net profit came in at ₹22.1 crore.
• Gross margin remained exceptionally strong at 78.9%.
• EBITDA margin moderated to 27.0% because of project execution mix.
• Cash and investments remained healthy at ₹465.9 crore.

Note:

• Management indicated that earnings were affected by timing differences in customer approvals rather than demand weakness.

Order Book and Order Pipeline:

• Confirmed order book stood at ₹927.7 crore as of June 30, 2026.
• Orders worth over ₹226 crore have already been received during FY27.
• Additional orders are under negotiation.
• Including negotiated orders, the opportunity pipeline stands at approximately ₹2,654 crore.
• Management expects healthy revenue visibility over the coming quarters.

Note:

• The strong order pipeline continues to support the company’s long-term revenue guidance despite quarterly execution fluctuations.

Strategic Acquisition Strengthens Vertical Integration:

• Acquired 100% stake in ST Advanced Composites Pvt. Ltd.
• Acquisition value: ₹10 crore.
• Strengthens in-house composite manufacturing capabilities.
• Enhances vertical integration across radar and defence electronics.
• Improves capability to bid for complete defence system contracts.
• Better manufacturing control is expected to improve execution efficiency and margins over time.

Note:

• The acquisition aligns with Data Patterns’ strategy of moving up the value chain by manufacturing more critical components internally.

Defence Electronics Business Continues to Expand:

• Continued focus on radar systems.
• Electronic Warfare portfolio expanding.
• Communication systems witnessing increasing opportunities.
• Exported Transportable Precision Approach Radar to Europe after successful site acceptance.
• Delivered multiple Precision Approach Radars to Indian Armed Forces.
• Development of Fire Control Radars, RF seekers, IR seekers and UAV radar solutions continues.

Note:

• The company remains one of India’s few integrated defence electronics manufacturers capable of delivering complete systems from design to production.

Product Development and Technology Investments:

• More than ₹135 crore invested in new product development.
• Around ₹185 crore invested in manufacturing infrastructure during the last five years.
• Additional ₹150 crore capex planned over the next two years.
• QIP proceeds continue to fund Radar, Electronic Warfare and Communication System R&D.
• Investments focused on increasing indigenous intellectual property and expanding the addressable market.

Note:

• The company continues prioritising long-term technology development rather than short-term profitability.

Revenue Mix Remains Diversified:

• Radar contributed 27.8% of Q1 FY27 revenue.
• Avionics accounted for 41.3%.
• Fire Control Systems contributed 8.4%.
• AMC represented 8.0%.
• Naval Systems contributed 6.2%.
• ATE accounted for 7.0%.

Customer mix remained diversified across:

• DRDO
• HAL
• BrahMos
• Ministry of Defence
• BEL
• Export customers

Note:

• The diversified customer base reduces dependence on any single defence programme. 

Strategic Priorities:

• Build complete defence systems using reusable in-house building blocks.
• Expand export business in Europe and other international markets.
• Increase participation in larger integrated defence contracts.
• Develop next-generation defence technologies.
• Enhance manufacturing through vertical integration.
• Maintain a net debt-free balance sheet.

Note:

• The company’s strategy focuses on increasing value addition while expanding addressable market opportunities. 

Growth Outlook:

• Revenue growth guidance maintained at 20–25% over the next two to three years.
• EBITDA margin target maintained at 35–40%.
• Strong order pipeline estimated at ₹2,000–4,000 crore over the next 24 months.
• Export initiatives continue gaining traction.
• Government’s Make in India and defence indigenisation policies remain key growth drivers.
• Infrastructure expansion continues to support future contracts.

Note:

• Management remains confident of achieving full-year guidance despite temporary project execution delays during Q1. 

Risk Analysis

Summary:

• Although the long-term outlook remains favourable, quarterly earnings can remain volatile because of milestone-based project execution, customer approval timelines and dependence on defence procurement schedules.

Key Risks:

• Delay in customer approvals.
• Timing mismatch in defence project execution.
• Dependence on government procurement.
• Export execution risks.
• Delays in new defence programmes.
• Higher R&D investments affecting near-term profitability.

Worst Case:

• If defence procurement slows or project approvals are delayed for an extended period, revenue recognition and profitability could remain uneven despite a healthy order book.

Risk Level: Medium

Company Commentary

• Order inflow has remained encouraging since the beginning of FY27.
• More than ₹226 crore of new orders have already been received.
• Customer approval delays are expected to normalise in the coming quarters.
• Larger integrated defence system opportunities continue to increase.
• Counter-drone and export businesses are gaining traction.
• Management remains confident of meeting FY27 guidance supported by India’s defence indigenisation initiatives.