Data Patterns Hits Record Order Book; Revenue Soars, Margins Compress

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AuthorIshaan Verma|Published at:
Data Patterns Hits Record Order Book; Revenue Soars, Margins Compress
Overview

Data Patterns (India) Limited reported strong top-line results for Q3 FY26, with revenue from operations surging 48% year-on-year to ₹173 Cr. EBITDA grew 44% YoY to ₹78 Cr. However, EBITDA margin dipped to 44.8% and PAT margin to 33.7% compared to the previous year. The company achieved an all-time high order book of ₹1868 Cr, providing significant future revenue visibility. For the nine-month period, revenue rose 86% YoY to ₹580 Cr, but margins saw considerable compression.

📉 The Financial Deep Dive

Data Patterns (India) Limited has unveiled its financial results for the quarter ended December 31, 2025 (Q3 FY26), showcasing a robust top-line expansion coupled with a significant increase in its order backlog.

The Numbers:

  • Q3 FY26 Performance (YoY):

  • Total Income: ₹179 Cr, up 39%.

  • Revenue from Operations: ₹173 Cr, a substantial 48% increase.

  • EBITDA: ₹78 Cr, marking a 44% jump.

  • EBITDA Margin: 44.8%, a slight compression from 46.2% in the prior year.

  • Profit After Tax (PAT): ₹58 Cr, up 31%.

  • PAT Margin: 33.7%, down from 38.2% YoY.

  • Nine-Month Performance (9MFY26 YoY):

  • Total Revenue: ₹602 Cr, a significant 73% growth.

  • Revenue from Operations: ₹580 Cr, an impressive 86% increase.

  • EBITDA: ₹178 Cr, up 42%.

  • EBITDA Margin: 30.7%, a notable compression from 40.2% YoY.

  • PAT Margin: 22.9%, declining from 34.5% YoY.

The Quality:
The company's revenue growth is commendable, particularly the 48% YoY increase in Q3 and 86% YoY in 9MFY26 from operations. However, the profitability margins present a point of concern. Both EBITDA and PAT margins have compressed year-on-year, more acutely in the nine-month period. The PAT growth of 31% in Q3, while positive, trails behind the revenue and EBITDA growth rates, indicating that increased operational costs or a less favourable product mix may be impacting the bottom line. The significant drop in the nine-month PAT margin to 22.9% from 34.5% YoY warrants close monitoring.

The Grill:
While no direct analyst grilling was detailed in the provided update, the Chairman & Managing Director expressed confidence in meeting full-year guidance. This optimism is anchored by the strong, executable pipeline and revenue visibility.

🚩 Risks & Outlook
The primary risk for Data Patterns lies in its ability to manage its cost structure and maintain or improve its profit margins amidst strong revenue growth. The observed margin compression, especially in the nine-month figures, needs to be addressed.

However, the outlook remains positive, primarily driven by the unprecedented order book. The Chairman's confidence in execution and sustained demand, supported by this backlog, suggests a strong revenue trajectory for the coming quarters and fiscal years.

Big Picture:
Data Patterns has successfully secured an all-time high order book of ₹1868 Cr, a substantial increase from ₹730 Cr at the start of the fiscal year. This includes ₹760 Cr in confirmed orders and ₹1107.8 Cr awaiting release, providing exceptional revenue visibility. This positions the company favourably for sustained growth in the defense and aerospace electronics sector. The market will be watching closely to see if the company can translate this order pipeline into profitable growth, overcoming the current margin pressures.

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