Data Patterns (India) Ltd., a key player in indigenous defence and aerospace electronics, reported a weaker-than-expected Q1 FY26, with both revenue and profit declining on a year-on-year basis. The results indicate a temporary slowdown after strong previous years of growth, possibly linked to project timelines and seasonal variations in defence procurement.
1. Standalone Financial Performance
For the quarter ended 30th June 2025, Data Patterns reported revenue from operations of ₹99.33 crore, down 4.56% YoY compared to ₹104.08 crore in Q1 FY25.
Profitability also contracted, with Profit After Tax (PAT) falling 22.23% YoY to ₹25.50 crore, from ₹32.79 crore in the same quarter last year. Profit Before Tax (PBT) declined to ₹42.63 crore from ₹49.49 crore, marking a 13.86% drop.
Standalone Financial Summary (₹ in crores):
| Particulars | Q1 FY26 | Q1 FY25 | YoY Change |
|---|---|---|---|
| Revenue from Operations | 99.33 | 104.08 | -4.56% |
| Profit Before Tax (PBT) | 42.63 | 49.49 | -13.86% |
| Profit After Tax (PAT) | 25.50 | 32.79 | -22.23% |
2. Q1 FY26 Highlights
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Revenue softness: A decline of ₹4.75 crore YoY, potentially reflecting project delivery cycles in the defence electronics sector.
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Profit pressure: Higher input costs and a less favourable product mix may have compressed margins.
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Defence procurement cycles: Often lumpy in nature, impacting quarter-to-quarter results for companies like Data Patterns.
3. Share Price Performance
On 8th August 2025, Data Patterns’ shares opened at ₹2,415.00 but fell during the session to ₹2,366.40.
Long-Term Returns Snapshot:
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1-Year: -20.02%
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5-Year: +258.90%
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All-Time: +258.86%
The decline in the past year reflects investor caution amid slowing quarterly growth and sector-specific delays.
4. Industry Context
The Indian defence electronics space remains a long-term growth story, supported by:
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Rising defence budget allocations.
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“Make in India” and Atmanirbhar Bharat initiatives.
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Increasing adoption of indigenous radar, avionics, and electronic warfare systems.
However, execution timelines and dependency on government orders make earnings volatile on a quarterly basis.
5. Key Factors Affecting Q1 FY26
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Project-based revenue recognition: Defence contracts often have milestone-linked payments.
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Cost escalations: Component price volatility and import dependencies can affect margins.
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Delayed clearances: Administrative or regulatory delays in defence projects can shift revenue to subsequent quarters.
6. Outlook
Despite the Q1 slowdown, Data Patterns’ order book strength, niche technological capabilities, and alignment with India’s defence modernisation plans keep its long-term growth trajectory intact.
Investors, however, should brace for quarterly earnings fluctuations and focus on the annual growth trend rather than short-term dips.
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