Data Patterns (India) Limited

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%.

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.

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.

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.

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.

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.