Data Patterns shares fall 11% after FY27 margin guidance spooks investors
Data Patterns shares fell up to 11% after the defence company guided for lower FY27 Ebitda margins despite reporting strong Q4 profit growth and a record order book
 "Data Patterns shares fall 11% after FY27 margin guidance spooks investors")
Data Pattern share price plunged 11 per cent on the BSE on Friday, a day after the defence company announced its January to March quarter (Q4) results for the financial year 2025-26 (FY26).
The decline in Data Patterns share came after the company said it expects a sharp margin compression in financial year 2026-27 (FY27).
While Data Patterns closed FY26 with Ebitda margin of 56 per cent, it said aims to maintain Ebitda margins at around 35-40 per cent in FY27.
The stock hit an intraday low of ₹3,566.25 per share, falling 11.04 per cent intraday. By 12:20 PM, Data Patterns stock had recovered some of the losses and was down 4.7 per cent at ₹3,825.10 per share.
By comparison, the BSE Sensex index was up 131 points (0.17 per cent) at the time of writing this report.
Data Patterns Q4 results
For the March 2026 quarter of the previous fiscal, Data Patterns reported a net revenue of ₹344.8 crore, clocking a decline of 13 per cent year-on-year (Y-o-Y), from ₹396.2 crore-revenue of Q4FY25.
The top line, however, was sharply higher on a quarter-on-quarter basis, rising from ₹173.1 crore.
Data Patterns earned 48.5 per cent of its revenue from Avionics, followed by 20.8 per cent revenue from FCS segment.
Meanwhile, its Ebitda jumped 29 per cent Y-o-Y and 148.5 per cent Q-o-Q to ₹192.8 crore.
Further, Data Patterns’ Q4FY26 net profit increased 21.3 per cent Y-o-Y/137.3 per cent Q-o-Q to ₹138.4 crore.
Data Patterns said its order book at the end of the March quarter stood at ₹926.5 crore, up from ₹743.4 crore at the end of December 2025.
The company’s gross margins were 73 per cent and Ebitda margins were 56 per cent during the quarter.
“FY26 has been a landmark year for Data Patterns, marked by strong execution, robust order inflows, and continued capability expansion across strategic defence programs. Our order book stands at an all-time high of ~₹2,062 crore, the highest in the company’s history, providing strong revenue visibility over the coming years,” said Srinivasagopalan Rangarajan, chairman & managing director, Data Patterns.
With a healthy executable pipeline across radars, electronic warfare and advanced defence electronics, the management remains confident of sustaining their growth momentum going forward.
The company has guided for a revenue growth of 20-25 per cent over the next two-three years.
Motilal Oswal on Data Patterns
Ahead of the company’s Analyst Call, Motilal Oswal maintained its ‘Neutral’ rating on Data Patterns.
Its said the company’s consolidated revenue came in lower than its estimate of ₹400 crore, but Ebitda was higher than the expectation of ₹180 crore.
Ebitda margin, too, beat its expectation of ~45 per cent, while adjusted PAT came in line.