01 — At a Glance
The Most Paisa-Doubling Defence Play That’s Actually Doubling
- 52-Week High / Low₹3,610 / ₹1,373
- FY25 Revenue (Full Year)₹708 Cr
- FY25 PAT (Full Year)₹222 Cr
- Full-Year EPS (FY25)₹39.62
- Annualised EPS (Q3×4)₹41.64
- Book Value₹275
- Price to Book12.5x
- Dividend Yield0.23%
- Debt / Equity0.00x
- Order Book (TTM)₹1,868 Cr
Auditor’s Moment of Clarity: Data Patterns closed Q3 FY26 with ₹173 crore revenue (+48% YoY), ₹58 crore PAT (+31% YoY), and an order book of ₹1,868 crore—the highest in company history. Management then casually mentioned ₹1,100 crore in “negotiated orders” expected to convert within 1–2 months. The stock has already returned 111% in 12 months. At 77.2x P/E, the market is essentially pricing in a defence moonshot where every management promise lands first time, every order executes on schedule, and working capital stops being a headache. No pressure, Data Patterns.
02 — Introduction
The Defence Contractor That Decided to Actually Execute
Data Patterns (India) is what you get when you take a 35-year-old electronics manufacturer, give it ₹150 crore to build R&D infrastructure, and point it at India’s defence modernisation wave. The result: a company that now supplies radars, electronic warfare suites, communications systems, and avionics to everyone from DRDO to HAL to BrahMos. Every military platform India has built in the last two decades—LCA Tejas, Light Utility Helicopter, BrahMos missile—has Data Patterns electronics inside it.
For years, it was a quiet, profitable business. ~32% revenue CAGR over the last three years, PAT margins that don’t budge from the 30%+ mark, and an order book that kept growing. Then, in 2024–25, the entire trajectory accelerated. Defence spending picked up. Indigenisation became non-negotiable. Procurement moved. And suddenly a ₹20,000 crore market cap company started trading like it might become a ₹100,000 crore behemoth by 2030.
Q3 FY26 is the quarter where execution finally arrived. ₹173 crore revenue—up 48% YoY. Order book hit ₹1,868 crore. Management says ₹1,100 crore more is negotiated and closing in weeks. The stock has already priced in some of this. Now the question is: how much is already baked in, and how much is still upside?
Concall Reality Check (Feb 2026): “This is not a sudden growth. It’s an execution catch-up.” Management clarified the 48% YoY jump in Q3 reflects orders that were delayed 2–3 years ago finally getting delivered. Patience rewarded. Delays—now in the rearview.
03 — Business Model: Radars, Missiles & Modern Warfare, Handmade in Chennai
They Make the Brains of India’s War Machines. Not Kidding.
Data Patterns is a vertically integrated defence electronics manufacturer. Translation: they design, develop, and manufacture electronic components that other companies (HAL, BrahMos, DRDO) assemble into larger defence systems. Their footprint spans three main verticals: Radars (fire control, search, terrain mapping), Electronic Warfare (jamming, threat detection, receivers), and Communications/Avionics. Every product requires design, development, testing, and manufacturing—all done in-house at their ₹200,000 sq ft facility in Chennai.
Revenue mix is split between Production (manufacture of already-designed products) and Development (designing + building new systems for the first time). FY25: Production 53%, Development 43%. The split matters because development contracts carry higher margins but longer gestation. When delays happen, development contracts delay the most.
Their competitive moat is straightforward: 35 years of relationships with DRDO, Ministry of Defence, and defence PSUs. Over 50% of revenue comes from DRDO alone. They have design-in advantage on every major indigenous platform. And unlike global primes that import subsystems, Data Patterns designs its own “building blocks”—radars, RF modules, antenna arrays—which they expense through P&L upfront. This mechanically lifts their gross margins when these products go into series production later.
Radars52%Revenue (FY25)
E-Warfare17%Revenue (FY25)
Exports15%Revenue (FY25)
DRDO Rev50%+Total Revenue
The Unsexy Truth: You don’t hear about Data Patterns because their work is classified. Every test flight of Tejas that looked perfect? Data Patterns radar. Every BrahMos that hit where it was supposed to? Data Patterns seeker. Government buying is slow, defence product cycles are glacial, and “classified” means no marketing. So the stock got ignored for years. Then the growth accelerated. Then everyone showed up.
💬 What’s the most Data Patterns product you’ve never heard of? LCA-Tejas fire control radar? BrahMos missile guidance? Drop in comments if you’ve used defence tech unknowingly!
04 — Financials Overview
Q3 FY26: The Numbers Are Finally Showing Up
Result type: Quarterly Results | Q3 FY26 EPS: ₹10.41 | Annualised EPS (Q3×4): ₹41.64 | Full-year FY25 EPS: ₹39.62
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 173 | 117 | 307 | +47.9% | -43.6% |
| Operating Profit | 81 | 54 | 68 | +50.0% | +19.1% |
| OPM % | 47% | 46% | 22% | +100 bps | +2500 bps |
| PAT | 58 | 45 | 49 | +28.9% | +18.4% |
| EPS (₹) | 10.41 | 7.98 | 8.79 | +30.5% | +18.4% |
The Q2 Oddity Explained: Q2 FY26 (Sep 2025) hit ₹307 crore revenue. That’s a data-point spike—a “large low-margin contract worth ₹180 crore,” management said, “taken at competitive pricing for long-term business.” Translation: they took a loss-leader deal to win relationship capital with the MoD. Q3 ₹173 crore is the normalized run-rate. Still +48% YoY. OPM at Q3 = 47% (vs 46% in Q3 FY25), confirming margins are holding firm despite the heavy development mix. At 77.2x P/E on annualised FY26 EPS (₹41.64), the stock is not cheap. But execution is finally arriving, so the multiple is no longer pure hope-and-prayer.
05 — Valuation: The 77.2x Reckoning
Is ₹3,442 Pricing In a Moonshot, or Just the Beginning?
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