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
The Nifty India Defence index hit an intra-day high of 9,093.20, up 1.3 per cent on the NSE in intra-day deals, and was inching towards its 52-week high of 9,159.55 touched on June 24, 2025.
With strong policy environment, rising defence allocations, increasing indigenization and a clear shift towards advanced electronics and systems, Data Patterns is well-positioned to benefit.
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The brokerage in its note highlighted that the global defence sector has entered a structurally elevated growth phase, driven by persistent geopolitical conflicts
In the past one month, the Nifty India Defence index has rallied 11 per cent, as against 4 per cent fall in the Nifty 50.
At 09:22 AM on Monday, the Nifty Defence index rose 1.1 per cent, as compared to 1 per cent decline in the Nifty 50 amid rising US-Iran tensions.
Motilal Oswal estimates a 30 per cent compound annual growth rate (CAGR) in aggregate revenue of their EMS coverage companies over FY25-28.
Share price of Data Patterns (India) rallied 9.5 per cent today to hit a high of ₹3,190 on the NSE in the intraday trade
Goldman Sachs highlighted three major tailwinds for the sector, including an 18 per cent Y-o-Y increase in capital procurement in the Union defence budget for FY27, and the proposed India-EU FTA
Data Patterns reported a 30.54 per cent year-on-year (Y-o-Y) jump in net profit to ₹58.30 crore, supported by a 47.92 per cent increase in revenue
Thus far in the month of February, the Nifty India Defence index slipped 5.5 per cent, as against 1.3 per cent rise in the Nifty 50.
Defence stocks: Data Patterns, GRSE, Paras Defence, BEML, Mazagon Dock and BEL among others crashed up to 19% in Sunday's intra-day trade even as FM proposed 15% higher Budget spends for the sector.
Unimech Aerospace and Manufacturing, Mtar Technologies and Data Patterns rallied in the range of 5 per cent to 6 per cent on the NSE in intra-day trade.
Data Patterns, Bharat Electronics, CG Power and Industrial Solutions, Siemens Energy India and ABB India rallied in the range of 8 per cent to 14 per cent on the BSE in Wednesday's intra-day trade.
Thus far in the month of January 2026, the Smallcap index has underperformed the market by falling 6.3 per cent, as compared to 2.8 per cent decline in the BSE Sensex.
Thus far in the calendar year 2025, the BSE Smallcap index has underperformed the market by falling 8%, as against 9% rally in the BSE Sensex and 0.3% decline in the BSE Midcap index.