1. At a Glance – Missile Electronics with Stock Market Fireworks
Data Patterns (India) Ltd is what happens when DRDO, ISRO, and the Indian defence ecosystem collectively decide to outsource their electronic brains to one Chennai-based company that doesn’t believe in modesty—financially or technologically. With a market cap of ₹15,211 Cr, a stock price of ₹2,717, and a P/E of ~61x, this company is priced like it’s already fighting wars on Mars.
The latest Q3 FY26 results came with fireworks: revenue of ₹173 Cr (+47.9% YoY), PAT of ₹60.6 Cr (+35.8% YoY), and operating margins flirting with 47%—numbers that make FMCG companies quietly cry in a corner. The company is almost debt-free (₹5.81 Cr debt), ROCE stands tall at 21%, and ROE at 15.2%.
But here’s the masala: while the order book has historically been lumpy, the latest disclosed order book is ₹1,868 Cr, which suddenly makes Data Patterns look less like a “project-based headache” and more like a “defence compounding machine.” Still, with working capital days north of 600, this is not a cash-flow love story.
So the big question: is Data Patterns a precision-guided missile… or a valuation-guided hallucination? Let’s decode.
2. Introduction – When Defence Electronics Became Sexy
Once upon a time, defence stocks were boring PSU uncles—reliable, slow-moving, and allergic to excitement. Then came companies like Data Patterns, and suddenly everyone wanted a piece of radar, EW, and avionics glamour.
Founded over 35 years ago, Data Patterns didn’t wake up yesterday and decide to become a defence darling. It has been quietly supplying mission-critical electronics for LCA Tejas, BrahMos missiles, Light Utility Helicopters, and space programs while the market was busy chasing IT services and NBFCs.
Post-listing, however, the stock discovered steroids. Revenues exploded, margins expanded, and the valuation went from “reasonable defence play” to “priced like the war has already been won.”
The company positions itself as a vertically integrated defence
and aerospace electronics player, which in simple English means: “We design, develop, manufacture, test, and deliver—please don’t ask us to outsource anything.” In a sector obsessed with indigenisation, this is catnip for policymakers and investors alike.
But defence is not FMCG. Orders are chunky, execution is uneven, and cash flows can look drunk in some years. So while the story is powerful, the numbers need interrogation—preferably under a harsh auditor’s lamp.
3. Business Model – WTF Do They Even Do?
Imagine explaining Data Patterns to a lazy but smart investor:
They don’t make missiles.
They don’t fly jets.
They make the electronics that tell missiles where to go and jets how not to crash.
That’s Data Patterns.
Core Verticals:
- Radars – Fire control radars for MiG-29, Su-30, helicopter radars. Basically, “who is where and how fast.”
- Electronic Warfare (EW) – Radar warning receivers, jammer pods, SDRs. Translation: confusing enemy systems before they confuse you.
- Communication Systems – Manpack radios, airborne radios, software-defined radios.
- Avionics, Satellite, Test Equipment – The boring-sounding stuff that actually decides mission success.
The company works heavily with DRDO (over 50% revenue), ISRO, Ministry of Defence, HAL, BEL, BDL, and BrahMos. This is not a “many customers, low dependency” model. This is a “one sovereign customer, deep relationship” model.
Is that risky? Yes.
Is it
1 thought on “Data Patterns (India) Ltd Q3 FY26 – ₹1,868 Cr Order Book, 47% OPM, 61x PE: Defence Darling or Valuation Daylight Robbery?”
need light mode.. too harsh to read in dark mode… please provide