Data Patterns (India) Ltd
(BOM:543428)
₹
4,382.15
-8.85 (-0.2%)
Market Cap: 245.33 Bil
Enterprise Value: 241.16 Bil
PE Ratio: 91.56
PB Ratio: 14.13
GF Score: 93/100 
Q1 2027 Data Patterns (India) Ltd Earnings Call Transcript
Jul 31, 2026 / 07:00AM GMT
Release Date Price:
₹4283.4
(-3.96%)
Key Points
Positve
- Data Patterns (India) Ltd (BOM:543428) reported a 17% year-on-year revenue growth in Q1 FY27, reaching Rs 116 crore, driven by continued execution across diversified defense programs.
- The company's order book stands at a robust Rs 2,654 crore, including negotiated orders, providing strong revenue visibility for the coming years.
- Management remains confident in securing Rs 2,000 crore of fresh orders during FY27, with several large opportunities at various stages of discussion.
- The company is successfully transitioning from development-stage products to complete system solutions, significantly expanding its addressable market and enabling participation in larger, higher-value programs.
- Initial traction in the drone and counter-drone business has begun, with the company receiving orders and expecting this segment to become a key growth driver.
- The company maintains a strong, net debt-free balance sheet with cash and investments of Rs 530 crore, providing ample flexibility for future growth initiatives.
- Gross margins remained strong at 78.9%, reflecting the high-value nature of the company's product mix.
- The company is actively pursuing export opportunities, with an international order book of Rs 39 crore and ongoing engagement with customers from global markets.
- The acquisition of a composite materials company is expected to enable backward integration and allow Data Patterns (India) Ltd (BOM:543428) to offer complete system solutions, enhancing its competitive position.
- The company is investing in AI and new technologies to accelerate product development and modernize internal processes, positioning itself for future market opportunities.
Negative
- EBITDA margin for Q1 FY27 was impacted, coming in at 27%, due to higher employee costs associated with capability expansion and changes in product mix.
- Other expenses rose by 64% year-on-year, driven by additional repairs and maintenance costs from facility revamping and a Rs 2 crore provision against long-term receivables.
- The company experienced temporary delays in customer approvals, which impacted revenue recognition during the quarter and contributed to uneven quarterly performance.
- The conversion of negotiated orders (worth Rs 1,726 crore) into final contracts has been delayed, with one large program taking an additional six months and requiring a further two-month extension.
- The company's revenue trajectory is not evenly distributed across quarters, leading to volatility in quarterly margins and profitability, as seen in the lower Q1 PAT margin of 19%.
- The development of the HAWK radar program has faced challenges, including a failed software partnership, and the company is still working to find a path to monetize the product.
- The company's space business remains in a holding pattern, with investments in satellite development deferred pending clarity on government funding and revenue models.
- The company expects significant capital expenditure of Rs 150-200 crore over the next two years for infrastructure, production lines, and testing equipment, which could pressure near-term cash flows.
- The company's ability to secure large orders, such as the BrahMos seeker and HAL contracts, is subject to customer qualification and approval timelines, which have historically faced delays.
- The company's expansion into new areas like counter-drone and exports is still in early stages, with revenue contributions expected to materialize only over the next few years.
Operator
India Limited Q1 FY27 Earnings Conference Call.
(Operator Instructions)
Ms. Pyasi Patel, Go India Advisor.
Thank you, and over to you, ma'am.
Prayasi Patel;Srinivasagopalan Rangarajan;India;Ltd;Chairman of the Board
Go India Advisor - Analyst;Data Patterns;
Thank you, Uda. Good afternoon, everyone, and welcome to Data Patterns India Limited call to discuss Q1 FY27 earnings call. We have the senior management of the company on the call, Mr. S. Rangarajan, Chairman and Managing Director, and Mr. Venkata Subramaniam, Chief Financial Officer. We must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks that the company may face. May I now request Mr. Rangarajan sir to take us through the company's business outlook and financial highlights, subsequent to which we will open the floor for the Q&A.
Thank you and over to you, sir.
- ()
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