Data Patterns (India) Limited — Q4 FY26 earnings call

Call held 15 May 2026

Management summary

Data Patterns delivered a strong FY26 with revenue growing 31% to INR 925 crores and EBITDA up 35% to INR 371 crores, driven by robust order inflows of INR 1,121 crores. The total order book, including negotiated orders, stands at INR 2,062 crores, providing significant revenue visibility. While Q4 revenue saw a YoY decline due to execution timing, the company maintains a healthy EBITDA margin of 40% for the full year and aims for 20-25% revenue growth with 38-40% EBITDA margins going forward, supported by ongoing investments in capacity and R&D.

Highlights

  • FY26 Revenue of INR 925 crores, up 31% YoY, exceeding guidance.

  • FY26 EBITDA of INR 371 crores, up 35% YoY, with margins at 40%.

  • FY26 Order Inflows of INR 1,121 crores, a significant 216% YoY increase.

  • Total order book, including negotiated orders, stands at INR 2,062 crores, providing strong revenue visibility.

  • Cash conversion cycle improved to 365 days in FY26 from 428 days in FY25, indicating better operational efficiency.

Concerns

  • Q4 FY26 revenue declined 13% YoY to INR 345 crores, attributed to timing of execution of certain programs.

  • Cash flow from operations has been weak in the last two years, though management expects improvement.

Key financials

2 periods

Q4 FY26

  • Revenue
    ₹345 Cr
    YoY -13% QoQ +99%
  • Gross Margin
    73%
  • EBITDA
    ₹193 Cr
  • EBITDA Margin
    56%
  • PAT
    ₹139 Cr
  • PAT Margin
    40%

FY26

  • Revenue
    ₹925 Cr
    YoY +31%
  • EBITDA
    ₹371 Cr
    YoY +35%
  • EBITDA Margin
    40%
  • PAT
    ₹271 Cr
    YoY +22%
  • PAT Margin
    29%
  • Gross Margin
    63%
  • Cash Conversion Cycle
    365 days

What they filed

Q1 FY27: revenue up 17.2%, net profit down 15.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue91 117 396 99 307 +237%173 +48%345 −13%116 +17%
EBITDA34 54 149 32 68 +100%81 +50%193 +30%31 −3%
Net profit30 45 114 26 49 +63%58 +29%138 +21%22 −15%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹2,062 Cr

as of 2026-03-31 quantified

Execution

provides a strong revenue visibility over the coming years

Composition

Mix 2 contract types
  • Services (from negotiated orders) ₹100 Cr 9.2%
  • Products (from negotiated orders) ₹990 Cr 90.8%

Share of order book by contract type, derived from disclosed amounts

Pipeline

qualified rfp

Additional single vendor contracts based on already supplied products, and orders for FY27

The order book continues to remain diversified across radar systems, avionics, electronic warfare, communication systems and strategic electronic applications.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex Capex disclosed
    • Investing in R&D, infrastructure, advanced technologies and manufacturing capabilities
    • Building large capacities, including 9-floor factory space
    We believe our healthy liquidity position and disciplined capital allocation strategy provides us with the flexibility to continue investing in R&D, infrastructure, advanced technologies and manufacturing capabilities.
  • Debt Debt disclosed
    The company continues to maintain a strong balance sheet and remains a debt-free company.
  • Liquidity Liquidity disclosed Healthy liquidity position and disciplined capital allocation strategy.
    We believe our healthy liquidity position and disciplined capital allocation strategy provides us with the flexibility to continue investing in R&D, infrastructure, advanced technologies and manufacturing capabilities.

Guidance & targets

Revenue

  • Revenue Growth Revenue · short term · High confidence 20-25%
    We continue to target revenue growth of around 20%, 25% over the short term while maintaining healthy EBITDA margins of 38% to 40% and preserving our net cash status.

    — S. Rangarajan

Profitability

  • EBITDA Margin Profitability · short term · High confidence 38-40%
    We continue to target revenue growth of around 20%, 25% over the short term while maintaining healthy EBITDA margins of 38% to 40% and preserving our net cash status.

    — S. Rangarajan

Order Inflow

  • Additional Single Vendor Contracts Order Inflow · this financial year · Medium confidence INR 1,900 crores
    Other than the order book, additional single vendor contracts based on already supplied products, which can fructify into contract this financial year stands at INR1,900 crores.

    — S. Rangarajan

  • Expected Orders Order Inflow · FY27 · Medium confidence INR 15-20 billion
    And over and above that, we are expecting orders to the tune of INR15 billion to INR20 billion for FY27?

    — S. Rangarajan

Working Capital

  • Cash Conversion Cycle Working Capital · going forward · High confidence 320-340 days

    From 365 days today

    We expect it to probably settle down at 320 to 340 days going forward.

    — Venkata Subramanian

Order Book

  • Revenue Visibility Order Book · coming years · Medium confidence at least 3 years revenue
    allowing Data Patterns to substantially increase revenue in the coming years towards building an order book of at least 3 years revenue, ensuring predictable growth.

    — S. Rangarajan

What to watch in Q1 FY27

Conversion of INR 1,000 crores negotiated orders

Next 1-2 months
Current Under negotiation
Target Contracts signed

Why it matters

Conversion of this significant portion of the pipeline into firm orders will boost the order book and provide clearer revenue visibility for upcoming quarters.

I think in the next 1 to 2 months' time, we should expect the contracts to happen.

Risks & concerns

  • Timing of execution and government approval processes for contracts

    medium

    Revenue recognition can be impacted by customer requirements and government approval processes, which are not always in the company's control, leading to variability in quarterly performance.

    Management acknowledged

  • Predicting exact timelines for large government contracts

    medium

    The nature of government contracts makes it difficult to predict exact timelines for contract finalization and execution, leading to cautious revenue projections.

    Management acknowledged

  • Weak cash flow from operations in prior years

    medium

    Cash flow from operations has been weak in the last two years, though management is focused on improving the cash conversion cycle.

    Analyst acknowledged

Q&A highlights

6 direct, 1 evasive
High Q4 EBITDA Margin and Product Mix Direct
And it is all our own full systems, which has been developed by us was sold, the margin profile was different. So, you need to look at not you can't give a direct guidance on contract to contract, how it will go in terms of EBITDA or margin because this is the overall business cycle.

Clarifies that the exceptionally high Q4 margins were due to a specific product mix of in-house developed systems with no bought-out components, indicating it's not necessarily a sustainable run-rate for all quarters.

Asked by Dipen Vakil

Timeline for Negotiated Orders (INR 1,000 crores) Direct
I think in the next 1 to 2 months' time, we should expect the contracts to happen. Unless, of course, there is some see these are all government customers. So, I can't predict for them. But our feeling is that it should happen in the next 1 to 2 months time.

Provides a specific, near-term timeline for the conversion of a significant portion of the pipeline into firm orders, which is crucial for future revenue visibility.

Asked by Dipen Vakil

Global OEM Traction and BrahMos Seeker Production Direct
I think in the next 2, 3 months' time or 4 months' time, we should start getting some contracts from these global OEMs, which will lead into some development initiatives initially, but then which will lead to year-on-year or quarter-to-quarter delivery for their actual military programs for which they are addressing their opportunities. ... Production orders would start coming in. They've indicated production orders, and they want it to be delivered before next year, middle is what the customer is saying.

Details progress on international business development and clarifies the timeline for BrahMos seeker production orders, which are key growth drivers and validate the company's export strategy.

Asked by Rishika (Goldman Sachs)

Order Book Composition (Services vs. Products) for Negotiated Orders Direct
I think about on this INR1,000-odd crores, which I've said maybe INR100 crores will be on services, so the rest on product delivery.

Provides a breakdown of the negotiated order book, indicating that the vast majority (approx. 90%) are product-related, which typically have higher margins and different execution cycles than services.

Asked by Hardik Rawat (IIFL Capital)

Q4 Execution Delays and Growth Guidance Evasive
No, no, no, I never mentioned. I never said anything like that. I never said anything like that. I've only compared quarter 2 to quarter 4 performances. ... There's not a poor execution. Actually execution has been actually very good. It's not poor. It is a good execution. And the execution has to be in line with customer requirements.

Management clarifies that there were no internal execution delays, attributing any slower revenue recognition to customer requirements or government approval processes, while reaffirming growth guidance and denying any mention of delays.

Asked by Garvit Goyal (Serene Alpha)

Cash Flow from Operations and Working Capital Improvement Partial
The cash conversion cycle today is at 365 days. We are seeing improvements year-on-year. We expect it to probably settle down at 320 to 340 days going forward. But year-on-year, we cannot at the beginning of the year, it's very early to calculate all that and come out with an answer for this.

Addresses concerns about past weak cash flow and provides a forward-looking target for cash conversion cycle improvement, indicating focus on operational efficiency, though a direct conversion from EBITDA was not provided.

Asked by Akshay (AK Investment)

Capacity Constraints for Future Growth Direct
No, we are building large capacities. For export contracts already capacity we have built, plus we are building something about nine floor of factory space to build in additional capacity to see that the larger as we the program size has increased and the volume of contracts increase to scale to multi thousand crore company. We already started investing on capex and infrastructure expansion because it takes 1 to 2 years' time.

Management confirms active investments in capacity expansion (e.g., 9-floor factory space) to support future multi-thousand crore revenue aspirations, mitigating concerns about scalability.

Asked by Santhosh

Virupaksha Radar and Anti-drone System Development Direct
Okay. First is Virupaksha is not our product. Virupaksha is a DRDO project, name for the Super Sukhoi radars. This is not ours. We call it by a different name. ... Similarly, when you talk about anti-drone, yes, products are getting done. We will be participating in demonstrating the products to army and air force and whatever. So that will happen. But again, we don't have clear time lines when what will happen.

Clarifies the company's involvement (or lack thereof) with specific defense projects and provides an update on the development and demonstration of new anti-drone systems, highlighting the long development cycles and lack of immediate revenue visibility for new products.

Asked by Dipen Vakil

2 min read 6 chapters

Detailed narrative

FY26 Financial Performance Overview

Data Patterns delivered a strong FY26, with revenue growing 31% year-on-year to INR 925 crores, surpassing the previous year's INR 708 crores. EBITDA increased by 35% to INR 371 crores, resulting in a healthy EBITDA margin of 40%. Profit After Tax (PAT) also saw a 22% growth, reaching INR 271 crores, with a PAT margin of 29%. For Q4 FY26, revenue was INR 345 crores, a 13% YoY decline but a 99% QoQ increase, with a strong EBITDA margin of 56%.

Robust Order Inflows and Book

The company recorded significant order inflows of approximately INR 1,121 crores in FY26, marking a 216% year-on-year increase, reflecting healthy demand across multiple defense and aerospace programs. This strong inflow has bolstered the order book, which stands at approximately INR 2,062 crores as of March 2026, including negotiated and expected orders. Management anticipates an additional INR 1,900 crores in single-vendor repeat contracts to fructify this financial year, further enhancing revenue visibility.

Strategic Programs & Product Development

Data Patterns is actively expanding its product development across radars for airborne platforms, surveillance, fire control, and maritime applications, areas previously dominated by foreign OEMs. The company is also developing new products for drone detection, spoofing, and jamming, with the EW suite for self-jammer being a 2-2.5 year initiative. Progress on BrahMos seeker development is underway, with production orders expected in the next 4-5 months, and the company is contributing to the AMCA program with glass cockpit and mission systems.

Export Market Expansion

The export order book currently stands at approximately INR 53 crores, with management expecting significant improvement in export momentum and revenue starting this year. The successful export of Transportable Precision Approach Radars to a European country highlights the company's growing international acceptance. Data Patterns is actively engaging with global OEMs, with inquiries from Europe, and expects to secure initial development contracts in the next 2-4 months, which will lead to military programs.

Operational Efficiency and Capital Allocation

The company improved its cash conversion cycle to 365 days in FY26 from 428 days in FY25, with a target to further reduce it to 320-340 days going forward. Data Patterns remains a debt-free company with a healthy liquidity position, enabling continued investment in R&D, infrastructure, and manufacturing capabilities. The company is building large capacities, including a nine-floor factory space, to support its aspiration of scaling to a multi-thousand crore company, with investments taking 1-2 years to fructify.

Future Outlook and Growth Targets

Management is optimistic about long-term opportunities in the domestic and international defence sectors, targeting a revenue growth of 20-25% and maintaining EBITDA margins of 38-40% in the short term. The company anticipates order inflows of INR 15-20 billion for FY27, driven by repeat orders for existing products and new strategic initiatives. They believe the company is well-positioned to capitalize on the multi-decade investment cycle in the global defence industry.

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