Data Patterns (India) Ltd Q2 FY26 – 62% Profit Jump, 238% Sales Spike & A Radar-Fueled Valuation That’s Orbiting Mars
1. At a Glance
Ladies and gentlemen, presenting one of the few Indian defence companies that doesn’t just talk about “Make in India” — it actually makes in India. Data Patterns (India) Ltd, trading at ₹3,105 a pop (20th Nov close), carries a market cap of ₹17,393 crore and a P/E of 74.5x — yes, that’s higher than the altitude of the BrahMos missile it helps build electronics for.
In Q2 FY26 (Sept 2025), the company reported ₹307 crore in revenue (up a ballistic 238% YoY) and ₹49.2 crore PAT (up 62% YoY). Operating margins, though, slipped to 22% from 38% last year — a sign that the radar dishes were spinning a bit too fast this quarter.
Debt? Practically zero (₹5.8 crore). Promoters? Holding tight at 42.4%, unpledged and calm. Exports have also taken off — 15% of revenue now, from just 6% last year. ROCE of 21% and ROE of 15.2% keep this defence darling solidly in the “premium but pricey” zone.
If Bharat Electronics is the government’s obedient PSU child, Data Patterns is the overachieving private nerd building motherboards for missiles.
2. Introduction – When Defence Meets Design Thinking
Some companies make chips. Some make boards. Data Patterns makes India’s radar heartbeat. For over 35 years, the Chennai-based firm has quietly become the invisible power behind visible national hardware — from LCA Tejas cockpits to BrahMos missiles, Light Utility Helicopters, and even ISRO satellites.
If HAL and BEL are the public sector’s front-line warriors, Data Patterns is the secret engineer crouched behind the console, soldering the nation’s electronic defences with a soldering iron in one hand and sarcasm in the other.
Founded by Srinivasagopalan Rangarajan and Rekha Murthy Rangarajan, the company stands out as one of the few vertically integrated private defence electronics players — meaning it designs, develops, manufactures, and tests under one massive roof. No outsourcing, no middlemen — just pure silicon and sweat.
And the results show. Revenue has grown from ₹63 crore in FY14 to ₹920 crore in FY25, a CAGR of 30% over 10 years. Profit has exploded from ₹7 crore to ₹233 crore — a 56% CAGR over a decade. Defence, after all, is the only industry where growth and explosion are both compliments.
3. Business Model – WTF Do They Even Do?
In short: Data Patterns makes the brains of India’s defence hardware.
Radar Systems (52% of FY25 revenue) – from fire control radars for Su-30s and MiG-29s to helicopter-mounted radars. Basically, the “eyes” of India’s armed systems.
Electronic Warfare (17%) – radar warning receivers, jammer pods, search receivers. If James Bond was Indian, Q would be buying from Data Patterns.
Communication Systems (part of “Others” 31%) – manpack radios, airborne programmable radios, and software-defined communication systems that link pilots, soldiers, and satellites.
Their three verticals of work are:
Production (53% in FY25) – full-scale manufacturing of defence electronics.
Development (43%) – custom R&D for DRDO, ISRO, and DPSUs.
Services (4%) – maintenance, calibration, and testing.
With 85% of FY25 revenue from domestic clients, the company is deeply tied to the Indian defence ecosystem. But exports (now 15%) are slowly becoming its new runway — literally and figuratively.
