Data Patterns (India) Ltd (NSE:DATAPATTNS), a defense and aerospace electronics solutions provider, reported strong growth in the third quarter and nine months of FY26, supported by sustained demand across radar, electronic warfare and communication systems.
Data Patterns is a fully integrated designer and manufacturer of high-reliability electronics for defense and aerospace platforms, including radars, avionics, electronic warfare (EW), communications and satellites. The company primarily serves India’s Ministry of Defence (MoD), DRDO, defense public sector units and international customers.
Financial Highlights – Q3 FY26 & 9M FY26
For Q3 FY26:
- Revenue rose 47.9% year-on-year to ₹1,731 million.
- EBITDA increased 43.6% to ₹776 million, with EBITDA margin at about 45%.
- Net profit climbed 30.5% to ₹583 million.
For the 9M period:
- Revenue grew 85.8% year-on-year to ₹5,799 million.
- EBITDA rose to ₹1,781 million.
- Net profit reached ₹1,330 million.
- Gross margin stood at roughly 57%.
- EBITDA margin near 31%.
The company remained net-debt free with cash and investments of ₹2,646 million as of Dec. 31, 2025.
Operational & Business Highlights
- During the period, Data Patterns delivered precision approach radars to Indian armed forces and exported radar systems to Europe after successful site acceptance tests.
- Developed electronic warfare receivers, jammer pods, and software-defined radios across land, air and satellite platforms.
- Radar, EW and avionics segments continued to drive revenue, with diversified income streams spanning production, development and services.
Order Book
- Stood at ₹7,434 million as of Dec. 31, 2025, while management indicated an all-time high executable pipeline and a broader opportunity pipeline of ₹20–30 billion over the next 18–24 months.
- The business operates in high-growth defense electronics categories aligned with India’s “Make in India” policies and import restrictions, supporting domestic procurement of military radars, communication systems and sensors.
Key Milestones & Achievements
- Over three decades, Data Patterns has developed fire control systems for the BrahMos missile, advanced EW receivers, glass cockpit avionics, nano-satellite technologies and maritime patrol radar systems.
- Expanded manufacturing capacity and system integration facilities in Chennai.
Geographic Presence & Target Customers
- The company operates primarily in India with expanding exports to Europe and the UK. Its key customers include MoD, DRDO, HAL, BEL and other defense and aerospace entities.
Management Commentary
- Chairman and Managing Director Srinivasagopalan Rangarajan said strong execution and sustained demand drove Q3 growth, adding that encouraging order inflows provide revenue visibility and support the company’s full-year guidance.
- Management also noted industry tailwinds from India’s “Make in India” defense procurement policies and import restrictions, which are supporting domestic sourcing of high-reliability military electronics and strengthening the company’s competitive positioning in key growth segments.
Other Key Developments
- Continued investment in long-term growth, with over ₹125 crore deployed toward advanced product development and plans for about ₹150 crore in additional capital expenditure over the next two years to expand manufacturing and system integration capabilities.
- The company is increasingly moving up the value chain by developing full systems using in-house building blocks, targeting higher-margin opportunities across radars, electronic warfare and communication platforms.
- Export momentum continued with deliveries to Europe and the UK, while the international order book and a broader ₹20–30 billion opportunity pipeline reinforce medium-term visibility.
Outlook
- Expects revenue growth of 20–25% over the next two to three years.
- Maintaining EBITDA margins of around 35–40%.
Robust margins, a strong order pipeline and export traction underscore positive growth visibility, although execution timelines and defense procurement cycles remain critical factors for future performance.