DATAPATTNS - Data Pattern

📊 NSE: DATAPATTNS 🏢 Electronics - Components 📅 Last Updated: 12/13/2025 21:22

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations grew 36% in FY25 to INR 708.35 Cr from INR 519.80 Cr in FY24. In Q2FY26, the segment mix was Production at 63% (INR 193.7 Cr), Development at 33% (INR 101.5 Cr), and Service at 4% (INR 12.3 Cr). H1FY26 revenue grew 109% YoY to INR 407 Cr.

Geographic Revenue Split

Domestic revenue accounted for 85% of FY25 operations. Export revenue significantly increased by 234% to INR 107 Cr in FY25 (15% of revenue) from INR 32 Cr in FY24 (6% of revenue), driven by new radar supplies to NATO countries.

Profitability Margins

Gross Margin for FY25 was 61%, down from 68% in FY24 due to a 67% increase in material costs. PAT margin for FY25 was 31.3% (INR 221.81 Cr) compared to 35% (INR 181.69 Cr) in FY24. Q2FY26 PAT margin dropped to 16% due to a low-margin strategic contract.

EBITDA Margin

EBITDA margin for FY25 stood at 38.8% (INR 275 Cr) vs 42.6% in FY24. Q2FY26 EBITDA margin was 22% (INR 68.5 Cr), a significant drop from 44% in Q2FY25, caused by the execution of a strategic INR 180 Cr low-margin contract intended to secure long-term opportunities.

Capital Expenditure

The company utilized QIP funds of INR 500 Cr for product development in Radar, EW, and Communication systems. As of March 2025, INR 86 Cr of QIP funds remained unutilized. Infrastructure was expanded in FY25 to support increased business volume, reflected in a 27% rise in administrative expenses.

Credit Rating & Borrowing

CRISIL and ICRA maintain a 'Positive' outlook with an A+ rating. Finance costs increased 30% to INR 12 Cr in FY25 due to additional working capital limits for Bank Guarantees. The company remains net debt-free with an interest coverage ratio of 25.45x.

⚙️ Operational Drivers

Raw Materials

Critical electronic components and raw materials for defense electronics; material costs represent 39% of revenue in FY25, having increased 67% YoY.

Import Sources

Sourced from international suppliers in regions including the United Kingdom and other global markets to support high-spec defense requirements.

Key Suppliers

Not specifically named in available documents, but identified as international electronic component manufacturers and specialized defense hardware vendors.

Capacity Expansion

Current infrastructure supports an order book of INR 673.6 Cr (H1FY26). The company is building additional infrastructure to address a pipeline of INR 2,000-3,000 Cr over the next 18-24 months.

Raw Material Costs

Material costs increased by 67% in FY25, outpacing the 36% revenue growth. This reduced gross margins to 61%. Procurement is managed through strategic alliances and long-term supply chains to mitigate geopolitical disruptions.

Manufacturing Efficiency

Employee benefit expenses as a percentage of revenue improved to 16% in FY25 from 19% in FY24, despite a headcount increase from 1,345 to 1,545 employees.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

20-25%

Growth Strategy

The company plans to build a dedicated marketing organization for exports, continue product development to build full systems for a larger Total Addressable Market (TAM), and maintain a net debt-free status while executing a pipeline of INR 20-30 billion in orders over 18-24 months.

Products & Services

Radars, Electronic Warfare (EW) systems, Communication systems, Avionics, Automatic Test Equipment (ATE), Fire Control Systems (FCS), and Naval Systems.

Brand Portfolio

Data Patterns (India) Limited.

New Products/Services

New radars supplied to NATO countries and EW products developed using QIP funds are expected to contribute significantly to the 20-25% growth guidance.

Market Expansion

Expansion into international markets via strategic alliances and joint ventures, specifically targeting NATO countries and the UK.

Market Share & Ranking

Not disclosed as a specific percentage, but recognized as a key private player in the Indian defense electronics space.

Strategic Alliances

Strategic alliances with international defense contractors and domestic entities like BrahMos Aerospace and DRDO.

🌍 External Factors

Industry Trends

The industry is shifting toward indigenization with 'Make in India' policies and import bans on defense items. The sector is growing, and Data Patterns is positioning itself to move from sub-system to full-system integration.

Competitive Landscape

Competes with DPSUs like BEL and HAL, as well as other private players, though often acts as a supplier/partner to BEL and HAL.

Competitive Moat

Moat is built on 30+ years of experience in mission-critical electronics and end-to-end capabilities in EW and Radars. This is sustainable due to high entry barriers and long development cycles in defense.