Net profit fell 13.5% year-on-year to ₹22.1 crore from ₹25.5 crore.
Revenue from operations rose 16.8% to ₹116 crore from ₹99.3 crore.
The results indicate that while business activity improved, higher costs prevented the increase in revenue from translating into higher earnings.
Margins come under pressure
EBITDA declined 2.2% year-on-year to ₹31.4 crore from ₹32.1 crore.
EBITDA margin contracted sharply to 27% from 32.3% a year ago.
The more than five-percentage-point decline in margins suggests operating costs increased at a faster pace than revenue, weighing on profitability during the quarter.
Acquisition to strengthen manufacturing
The company’s board approved the acquisition of a 100% stake in Chennai-based ST Advanced Composites Pvt. Ltd. (STAC) for ₹10 crore.
The acquisition will give Data Patterns in-house capabilities to manufacture composite components used in radar systems and other defence programmes.
Composite materials are widely used in modern defence equipment because they are lighter, stronger and more resistant to corrosion than conventional metals. Bringing this capability in-house could reduce dependence on suppliers and improve execution timelines.
Order book offers strong revenue visibility
Chairman and Managing Director Srinivasagopalan Rangarajan said the June-quarter performance was in line with the company’s expectations.
He attributed the relatively modest revenue to temporary delays in customer approvals, which are expected to normalise over the coming quarters.
The company has already received more than ₹226 crore worth of orders so far in the current financial year.
Its order book currently stands at around ₹2,654 crore, including negotiated orders pending receipt.
The order book is more than 22 times the company’s June-quarter revenue, providing strong visibility for future execution if project approvals remain on schedule.
Larger contracts and exports gather pace
Rangarajan said the company is increasingly securing larger-value complete system contracts, while its counter-drone business and exports continue to gain traction.
He added that Data Patterns remains confident of achieving its full-year guidance, supported by the government’s continued focus on indigenous defence manufacturing.
The shift from supplying individual components to complete defence systems typically allows companies to capture more value and improve long-term profitability. Meanwhile, export growth provides an additional avenue beyond domestic defence spending.
Shares of Data Patterns (India) ended 0.34% higher at ₹4,451.70 on the National Stock Exchange on Thursday, ahead of the earnings announcement.
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