Shares of Data Patterns (India) Ltd. climbed as much as 10% on Monday, November 9, despite the defence electronics company reporting a weak set of September quarter (Q2FY27) results, as a sharp jump in order inflows and management’s optimistic outlook for the second half lifted sentiment.
The company reported a 57% year-on-year decline in revenue to ₹133 crore in Q2FY27. Net profit also fell 55% to ₹22 crore compared with the corresponding quarter of the previous fiscal year. EBITDA margin, however, remained broadly unchanged at 23.3%.
The weak financial performance reflected subdued revenue execution during the quarter. However, fresh order inflows provided some comfort, with the company securing orders worth ₹929.1 crore, marking a 475% increase from the year-ago period.
Data Patterns’ order book currently stands at ₹2,698 crore, comprising 21% services, 36% development and 43% production orders.
Management retains FY27 guidance
During its earnings call, management said it expects the second half of FY27 to deliver a stronger performance than the first half, supported by a healthy order book and improving execution.
The company has retained its FY27 guidance of 20–25% revenue growth and EBITDA margins of 35-40%. This comes despite revenue declining 31% year-on-year during the first half of FY27, while EBITDA margin stood at 25%.
Management also highlighted an opportunity pipeline worth ₹2,000-4,000 crore over the next 24 months, as the company looks to expand its participation across a wider range of defence programmes.
Defence electronics will remain a key focus area, with the company continuing to invest in developing indigenous products. Management said investments in in-house product development would remain at current levels. Data Patterns has invested more than ₹145 crore in new product development, with several products at advanced stages of readiness.
The company also highlighted its engineering capabilities, with a team of more than 1,100 engineers focused on product development and innovation.
In September 2026, Data Patterns acquired a 100% stake in ST Advanced Composites for ₹10 crore. The acquisition is among the key developments to monitor as the company expands its capabilities across defence programmes.