Data Patterns (India) Limited Q2 revenue falls 57% year-on-year

Data Patterns (India) Limited reported consolidated revenue from operations of Rs 133.25 crore for the quarter ended 30 September 2026, 56.66% below Rs 307.46 crore a year earlier, while profit after tax fell 55.64% to Rs 21.82 crore. The company says current consolidated results are not comparable with earlier standalone periods after its 17 September 2026 acquisition.

What were DPIL's September-quarter results?

DPIL's reported September-quarter revenue and profit both declined year-on-year, although revenue increased from the June 2026 quarter. Revenue from operations was Rs 133.25 crore, compared with Rs 307.46 crore in the quarter ended 30 September 2025 and Rs 116.03 crore in the quarter ended 30 June 2026. Other income rose to Rs 8.16 crore from Rs 5.94 crore a year earlier, taking total income to Rs 141.41 crore.

Consolidated profit before tax was Rs 29.39 crore, down from Rs 66.36 crore in the September 2025 quarter and marginally below Rs 29.48 crore in June 2026. Profit after tax was Rs 21.82 crore, versus Rs 49.19 crore a year earlier and Rs 22.06 crore in the preceding quarter. Basic and diluted earnings per share, not annualised, were Rs 3.86 against Rs 8.79 a year earlier.

What changed in DPIL's quarterly costs and margins?

DPIL's lower quarterly income was accompanied by a reduction in total expenses to Rs 112.02 crore from Rs 247.04 crore in the September 2025 quarter. Cost of materials consumed declined to Rs 57.77 crore from Rs 123.46 crore, while the inventory line showed a Rs 16.52 crore reduction, compared with a Rs 65.57 crore increase a year earlier.

Some costs increased despite lower revenue. Employee benefits expense rose to Rs 44.10 crore from Rs 37.88 crore, other expenses increased to Rs 16.54 crore from Rs 12.07 crore, and depreciation and amortisation rose to Rs 7.07 crore from Rs 5.65 crore. Finance costs were Rs 3.06 crore, compared with Rs 2.41 crore in the year-earlier quarter. The filing does not attribute the profit movement to a specific project, customer or expense line.

Against June 2026, materials consumed increased by Rs 27.04 crore from Rs 30.73 crore, while total expenses rose by Rs 18.16 crore from Rs 93.86 crore. This broadly offset the Rs 18.07 crore sequential increase in total income to Rs 141.41 crore, leaving profit before tax nearly unchanged at Rs 29.39 crore from Rs 29.48 crore.

How did DPIL perform in the first half?

DPIL reported revenue from operations of Rs 249.28 crore for the half-year ended 30 September 2026, down 38.72% from Rs 406.79 crore in the corresponding 2025 period. Total income declined to Rs 264.75 crore from Rs 423.28 crore, a reduction of Rs 158.53 crore. These reported comparisons carry the same consolidation qualification as the quarterly numbers.

Half-year profit after tax was Rs 43.88 crore, compared with Rs 74.69 crore in the half-year ended 30 September 2025. Profit before tax decreased to Rs 58.87 crore from Rs 100.31 crore, while tax expense fell to Rs 14.99 crore from Rs 25.62 crore. Half-year earnings per share, which are not annualised, were Rs 7.80 against Rs 13.34.

The half-year cost mix changed alongside the lower revenue. Materials consumed fell to Rs 88.50 crore from Rs 180.62 crore, but employee benefits expense increased to Rs 86.63 crore from Rs 74.26 crore. Total expenses decreased to Rs 205.88 crore from Rs 322.97 crore, and the inventory line moved to a Rs 22.73 crore reduction from a Rs 28.51 crore increase in the prior-year half-year.

Why are DPIL's reported periods not directly comparable?

DPIL says the September 2026 quarter and half-year consolidated figures are not comparable with the cited prior periods because it acquired 100% of ST Advanced Composites Private Limited effective 17 September 2026. The acquisition consideration was Rs 1.50 crore paid to the former shareholders. The June 2026, September 2025, half-year September 2025 and year ended 31 March 2026 figures are standalone results of the holding company.

The acquired subsidiary had total assets of Rs 11.90 crore at 30 September 2026, nil revenue in both the quarter and half-year, and a net loss after tax of Rs 0.15 crore in each period. Its half-year net cash flow was negative Rs 0.71 crore. These amounts were included in DPIL's consolidated results for the September 2026 reporting periods.

DPIL said the initial accounting for the business combination was incomplete as of 30 September 2026. The group recorded provisional values for currently identified assets and liabilities and is carrying out a detailed purchase price allocation with an independent expert during the measurement period. Deloitte Haskins & Sells issued unmodified review conclusions on the standalone and consolidated unaudited results on 6 November 2026.

What do DPIL's balance sheet and QIP proceeds show?

DPIL's standalone total assets were Rs 1,956.42 crore at 30 September 2026, compared with Rs 1,929.22 crore at 31 March 2026. Inventories increased to Rs 356.25 crore from Rs 273.89 crore, while trade receivables declined to Rs 498.80 crore from Rs 727.77 crore. Cash and cash equivalents rose to Rs 68.09 crore from Rs 56.85 crore.

Net cash from operating activities was Rs 110.16 crore for the half-year ended 30 September 2026, compared with cash used in operations of Rs 49.80 crore in the corresponding 2025 half-year. The movement included a Rs 224.33 crore decrease in trade receivables and an Rs 82.36 crore increase in inventories. Investing activities used Rs 36.06 crore, while financing activities used Rs 62.86 crore, including Rs 55.96 crore of dividends paid.

Of Rs 487.74 crore raised through the qualified institutional placement, DPIL had utilised Rs 465.89 crore as of 30 September 2026, leaving Rs 21.85 crore unutilised. The remaining balance comprised Rs 20.25 crore for product development and Rs 1.60 crore for an electromagnetic interference-electromagnetic compatibility testing facility.

Conclusion

DPIL's reported September-quarter revenue of Rs 133.25 crore and profit after tax of Rs 21.82 crore were materially below the Rs 307.46 crore and Rs 49.19 crore recorded a year earlier. Revenue rose Rs 17.22 crore from the June 2026 quarter, but profit after tax was Rs 0.24 crore lower as total expenses increased to Rs 112.02 crore.

The next disclosures will show the outcome of the provisional purchase price allocation for the Rs 1.50 crore ST Advanced Composites Private Limited acquisition. They will also indicate how DPIL deploys the remaining Rs 21.85 crore of qualified institutional placement proceeds, including Rs 20.25 crore allocated to product development and Rs 1.60 crore for the testing facility.