Defence Stock Jump 9% After Announcing December Quarterly Results

Synopsis: Data Patterns (India) Limited reports 47.92% YoY revenue growth and a 31.52% YoY surge in net profit in Q3 FY26 results, with an order book at ₹743.4 crore and management guiding 20-25% revenue CAGR over the next 2-3 years.

This small-cap Defence Stock, engaged in designing and manufacturing defense and aerospace electronics, including radars, fire control systems, and satellite subsystems for mission-critical applications, jumped 9.20 percent after the company reported December quarterly results with a 47.92 percent YoY increase in revenue.

With a market capitalization of Rs. 15,009.58 crores, the share of Data Patterns (India) Limited has reached an intraday high of Rs. 2,758.90 per equity share, rising nearly 9.20 percent from its previous day’s close price of Rs. 2,526.55. Since then, the stock has retreated and is currently trading at Rs. 2,714 per equity share. 

Q3 FY26 Result Walkthrough

Coming into the quarterly results of Data Patterns (India) Limited, the company’s consolidated revenue from operations increased by 47.92 percent YOY, from Rs. 117.04 crore in Q3 FY25 to Rs. 173.13 crore in Q3 FY26, and decreased by 43.69 percent QoQ from Rs. 307.46 crore in Q2 FY26.

Further, the company’s EBITDA has increased by 43.59 percent, from Rs. 54.03 crore in Q3 FY25 to Rs. 77.58 crore in Q3 FY26. The company’s EBITDA margin has decreased from 46.16 percent in Q3 FY25 to 44.81 percent in Q3 FY26. The PAT margin has reached 33.67 percent, as compared to 38.16 percent in Q3 FY25.

In Q3 FY26, Data Patterns (India) Limited’s consolidated net profit increased by 31.52 percent YOY, reaching Rs. 58.63 crore compared to Rs. 44.58 crore during the same period last year. As compared to Q2 FY26, the net profit has increased by 21.61 percent, from Rs. 48.21 crore. The basic earnings per share increased by 30.74 percent and stood at Rs. 10.42 as against Rs. 7.97 recorded in the same quarter in the previous year, FY2025.

Data Patterns (India) Limited’s revenue and net profit have grown at a CAGR of 35.33 percent and 60.26 percent, respectively, over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 21 percent and 15.2 percent, respectively. Data Patterns (India) Limited has an earnings per share (EPS) of Rs. 44.1, and it’s an almost debt- free company.

Revenue Breakup (Q3 FY26)

In Q3 FY26, Data Patterns (India) Limited reported total revenue of Rs. 173.1 crore, with a well-diversified mix across key segments. Radar contributed the largest share at 31.1 percent, followed by Avionics at 28.8 percent and Electronic Warfare (EW) at 26.9 percent, together forming the core revenue drivers. 

ATE accounted for 7.5 percent, while AMC contributed 5.1 percent and Services & Others made up 0.6 percent, reflecting stable support income alongside strong product-led growth.

Customer-Wise Revenue Mix

In Q3 FY26, BEL was the largest contributor to Data Patterns (India) Limited’s revenue, accounting for 31.2 percent. This was followed by ECIL at 26.9 percent. HAL and other customers each contributed 15.6 percent, while exports made up 9.6 percent. MOD accounted for 0.6 percent, and DRDO contributed 0.5 percent.

Order Book

The company began FY25 with an order book of Rs. 729.8 crore. During the first nine months, it secured fresh order inflows of Rs. 593.4 crore, while executing orders worth Rs. 579.9 crore. After accounting for these movements, the closing order book strengthened to Rs. 743.4 crore, indicating steady replenishment of orders and sustained demand visibility.

Management Guidance

Data Patterns (India) Limited management has guided for sustained strong growth, targeting a 20-25 percent revenue CAGR over the next two to three years. The company also expects to maintain healthy profitability, with EBITDA margins projected in the 35-40 percent range for FY26, reflecting confidence in its order pipeline, execution capabilities, and defense electronics demand outlook

Company Overview

Data Patterns (India) Limited is engaged in designing, developing, and manufacturing high-reliability electronics solutions for defense, aerospace, and meteorological applications. The company specializes in mission-critical systems such as radars, electronic warfare equipment, fire control mechanisms, satellite subsystems, navigation aids, rugged displays, and automatic test setups, serving platforms across space, air, land, sea, and underwater domains. 

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