Data Patterns Q4 FY26: Revenue -13%, PAT +21%

Stock reaction: 11% fall after Q4 print

Shares of Data Patterns (India), a defence and aerospace electronics company, fell sharply after the company reported its March-quarter results. The stock dropped 11% to an intraday low of ₹3,566 on the BSE on Friday. The decline came even as profitability rose, highlighting investor focus on the topline drop in the quarter. The company reported a 13% year-on-year decline in revenue from operations for Q4 FY26. Investors also tracked updates on the order book, which management described as being at an all-time high when negotiated orders are included. Over the last six months, the stock has risen over 20%, and it is up about 45% on a year-to-date basis, as stated in the report. The day’s move underscored how quarterly revenue volatility can drive short-term price swings even when profit growth and order visibility remain strong.

Q4 FY26: Revenue declines, profit rises

For the March quarter, revenue from operations fell to ₹345 crore from ₹396 crore in Q4 FY25, a decline of 13% year-on-year. Despite the revenue contraction, Data Patterns reported a 21% jump in net profit to ₹138 crore from ₹114 crore in the year-ago quarter. Operating performance improved, with EBITDA rising 29% year-on-year to ₹193 crore compared with ₹150 crore in Q4 FY25. Profit before tax (PBT) increased 23% to ₹188 crore from ₹153 crore. The combination of lower revenue and higher profit indicates a quarter where cost structure, project mix, or execution timing supported margins, though the company also referenced gross margin pressure linked to a low-margin strategic contract delivered during Q3 and Q4. The results set up a mixed quarter headline: a weak topline alongside stronger profitability.

FY26 full-year numbers show strong growth

While Q4 revenue fell year-on-year, the full-year FY26 numbers showed a stronger trajectory. Total revenue for FY26 increased 26% to ₹953 crore from ₹755 crore in FY25. Revenue from operations rose 31% year-on-year to ₹925 crore from ₹708 crore. EBITDA grew 35% to ₹371 crore compared with ₹275 crore in the previous year. PBT rose 23% to ₹364 crore from ₹295 crore. Profit after tax for FY26 stood at ₹271 crore, a 22% increase from ₹222 crore in FY25. Management characterised FY26 as a “landmark year”, citing strong execution, healthy order inflows, and capability expansion across strategic defence programmes.

Order book update: executed, received, and negotiated

The order book was a central part of the company’s commentary, particularly after the market reaction to the quarterly revenue decline. Data Patterns said its order book stood at ₹926.48 crore as of March 31, 2026. It also reported that orders worth ₹46.78 crore had already been received in Q1 FY27 so far. In addition, negotiations were completed for orders worth ₹1,090 crore that are yet to be formally awarded. Including these negotiated orders, the company expects the total order book to rise to ₹2,061.79 crore. Management said the order book has reached an all-time high of around ₹2,062 crore, providing strong revenue visibility.

What management said about execution and margins

Management said FY26 performance was supported by execution and order inflows, alongside ongoing expansion of capabilities across strategic defence programmes. The company also noted that gross margins faced some pressure because of a low-margin strategic contract delivered in Q3 and Q4. At the same time, it said this was largely offset by a few higher-margin projects, enabling it to maintain healthy financial performance. The company reported a gross margin of 61% for the full year and a PAT margin of 31%. It also flagged that fresh order intake during the quarter was lower than anticipated, influenced by external factors beyond the company’s control. Management added that it continues to maintain a healthy pipeline and expects such delays to be temporary.

Business context: where Data Patterns plays in defence electronics

Data Patterns’ stated core competencies include design and development across electronic hardware, software, firmware, mechanical systems and prototypes, along with testing, validation and verification. The company’s involvement spans radars, electronic warfare suites, communications, avionics, small satellites, automated test equipment and COTS solutions. It has participated in programmes catering to platforms such as Tejas light combat aircraft, light utility helicopters and BrahMos, along with other communication and electronic intelligence systems. This positioning matters because delivery schedules and customer approvals can shift quarterly revenue recognition, even when the longer-term demand pipeline remains active.

Key numbers at a glance

Order book and recent share-return snapshot

Market impact: why investors reacted despite higher profit

The immediate stock reaction followed a clear trigger: a year-on-year decline in Q4 revenue from operations to ₹345 crore. For many investors, the topline is a key indicator of execution pace, delivery schedules, and near-term conversion of the order book into billed revenue. At the same time, the quarter showed improvements in EBITDA and PAT, suggesting stronger operating profitability in the period. Management’s emphasis on a record order book of around ₹2,062 crore, including negotiated orders, points to longer-term visibility, but the market often discounts such visibility when quarterly revenue is weak or uneven. The company also acknowledged lower-than-anticipated fresh order intake during the quarter due to external factors, which can add to near-term uncertainty even if pipelines remain strong.

Analysis: what stands out in this update

Two elements stood out from the disclosures. First, the divergence between Q4 revenue decline and profit growth, which indicates that profitability did not track revenue in a straightforward manner in the quarter. Second, the split in order book reporting, with a reported order book of ₹926.48 crore as of March 31, 2026, and an expected total of ₹2,061.79 crore after including negotiated orders. For investors, the distinction between formally awarded orders and negotiated-but-unawarded orders is important, because timing and certainty can differ. Management’s comments on the executable pipeline across radars, electronic warfare systems and advanced defence electronics provide context on areas where it expects continued activity. The full-year FY26 growth in revenue and profit also provides a counterbalance to the Q4 topline drop.

Conclusion: strong FY26, mixed Q4, order visibility in focus

Data Patterns reported a mixed March-quarter performance, with Q4 FY26 revenue from operations down 13% year-on-year to ₹345 crore, while net profit rose 21% to ₹138 crore. The stock fell 11% intraday following the results, indicating that investors weighed the revenue decline heavily. Management highlighted FY26 growth across revenue, EBITDA and PAT, and pointed to an all-time high order book of around ₹2,062 crore when negotiated orders are included. The next cues will come from the formal award of negotiated orders worth ₹1,090 crore and the pace of new order inflows, as the company already reported ₹46.78 crore of orders received in Q1 FY27 so far.