Data Patterns Reports 16.8% Revenue Growth in Q1 FY27, Net Profit Declines

Data Patterns (India) Ltd's revenue from operations rose 16.8% to ₹116.03 crore in the first quarter of fiscal year 2027, up from ₹99.33 crore in the same period last year. The company’s total income also increased by 12.2% to ₹123.34 crore from ₹109.88 crore.

Reader Takeaway: Operational growth continues year-over-year, but seasonal pressures impact quarterly profit.

What just happened

Data Patterns posted its financial results for the quarter ended June 30, 2026. Revenue from operations reached ₹116.03 crore, a 16.8% jump from ₹99.33 crore in Q1 FY26. Total income grew 12.2% to ₹123.34 crore.

However, net profit saw a 13.5% decrease, falling to ₹22.06 crore from ₹25.50 crore in the prior year's first quarter. The company explained that its business is affected by seasonality, with Q1 typically lower than Q4 due to project billing cycles.

Why this matters

The year-over-year revenue growth indicates continued expansion in Data Patterns' core defense electronics business. While the profit decline is notable, the company attributes it to predictable seasonal variations common in the defense sector, where project timelines and government procurements can lead to lumpy revenue realization. This suggests the sequential dip from Q4 to Q1 should be viewed within this industry context.

The backstory

Data Patterns is a key player in the Indian defense electronics sector, focusing on design, development, and manufacturing of a range of products. The company had previously raised funds via Qualified Institutional Placement (QIP) to support its growth.

What changes now

With nearly all QIP funds deployed, Data Patterns is nearing the completion of its planned investments in capacity expansion and product development. Investors will now look for these investments to translate into improved operational efficiency and future revenue streams. The company continues to operate with an unmodified auditor's opinion, signaling clean financial reporting.

Risks to watch

While the company highlights seasonality, any sustained deviation from expected profit margins or significant delays in QIP fund utilization could pose risks. Dependence on government contracts also represents a key risk factor.

Peer comparison

Data Patterns operates in a specialized segment of the defense sector. Direct peer comparison on quarterly results can be complex due to varying project cycles and order books among defense manufacturing companies in India.

Context metrics (time-bound)

• Revenue from Operations (Q1 FY27): ₹116.03 Cr (+16.8% YoY)
• Net Profit (Q1 FY27): ₹22.06 Cr (-13.5% YoY)
• QIP Fund Utilization: ₹461.49 Cr deployed out of ₹487.74 Cr (as of June 30, 2026)

What to track next

Investors should monitor the company's ability to translate its investments from QIP fund utilization into tangible revenue growth and improved profitability in upcoming quarters. Tracking project wins and order book status will be crucial.