Data Patterns shares collapse 7% as Q1FY27 earnings show subdued performance

Shares of leading defence technology player Data Patterns plunged over 7% on Friday morning after the company posted subdued earnings for the quarter ended June 2027. The shares opened 7.2% lower at ₹4,128 apiece on the NSE. The shares hit record highs of ₹4,945 apiece last month, soaring over 90% in 2026 alone. However, the shares pared some of the gains, and the YTD returns currently stand at 60%.

Data patterns Q1FY27 earnings

The company’s growth during the quarter remained largely subdued across the board. The revenue for the quarter jumped 16.9% YoY to ₹116 crore as compared to ₹99 crore in the same period last year. However, on a sequential basis, the revenue plunged 66% QoQ from ₹344.9 crore. The sharp fall in revenue can be largely attributed to slower execution of orders.

As of Q1FY27, the company’s total order book stands at ₹927 crore as compared to ₹926.5 crore at the end of FY26. The total order inflow for the quarter stood at ₹117 crore, and the order execution stood at ₹116 crore as compared to ₹344 crore in the previous quarter.

Similarly, the EBITDA growth for the quarter largely remained subdued at -2.2% at ₹314 crore as against ₹321 crore in the same period last year. The EBITDA margin contracted by over 526 bps to 27% as compared to 32% in the same period last year. The sharp contraction in margins was largely due to a sharp rise in raw material, fixed and other expenses during the quarter.

Consequently, the net profit for the quarter plunged 13% YoY to ₹22 crore as compared to ₹25.5 crore in the same period last year.

Despite the subdued performance in Q1FY27, the management remains optimistic on achieving 20-25% revenue growth over the next two-three years and an EBITDA margin of 35-40% in FY27. Additionally, the order book in the pipeline remains strong at ₹2000 to ₹4000 crore for next two to three years.

Commenting on the Q1FY27 results, Chairman & MD, Srinivasagopalan Rangarajan said, “The quarter has met our expectations. Order inflow has been encouraging since the start of the financial year, with over Rs. 226 Cr in orders received so far, and more in the pipeline. While revenue for the quarter was modest, primarily due to temporary delays in customer approvals, these are expected to normalise in the coming quarters.