Data Patterns zooms 125% from March low; what's driving defence stock?

The stock hit a four-month high of ₹3,044, as it rallied 9 per cent on the BSE in Thursday's intra-day trade after the company reported strong earnings for Q2FY26.

Share price of Data Patterns (India) today

 

Shares of Data Patterns (India) hit a four-month high of ₹3,044, as they rallied 9 per cent on the BSE in Thursday’s intra-day trade after the company reported strong earnings for the second quarter of the financial year 2025-26 (Q2FY26). 

 

The stock price of the aerospace & defence company has zoomed 125 per cent from its 52-week low of ₹1,350.50 touched on March 3, 2025. Currently, it quotes at its highest level since July 10, 2025. The scrip had hit a 52-week high of ₹3,267.20 on June 6, 2025.

Data Patterns reports strong Q2 results, order book position

 

Revenue increased by 238 per cent year-on-year (YoY) and 210 per cent quarter-on-quarter (QoQ) to ₹307.50 crore in Q2FY26, led by strong execution. EBITDA was up 99.7 per cent YoY (+113.5 per cent QoQ) to ₹68.5 crore. Profit after tax increased by 62.5 per cent YoY and 92.9 per cent QoQ to ₹49.2 crore. 

 

 

EBITDA margin contracted by 1541 bps YoY (-1002 bps QoQ) to 22.3 per cent, on account of execution of lower-margin strategic contract worth ₹180 crore during the quarter. However, the management is confident of achieving regular historical margins for the rest of the year.  ALSO READ | Nazara Tech shares rally despite Q2 loss; What's driving the momentum? 

As on September 30, 2025, including orders negotiated worth ₹552.08, the total order book will be ₹1,286.98 crore, Data Patterns said. The company said it has successfully completed the Site Acceptance Tests of Transportable Precision Approach Radars (T-PAR) delivered to European Countries. This is the first export Radar, fully developed by Data Patterns, it added.

 

“Our order inflow in the first half of the current financial year is in line with expectations, and our order book includes two significant orders for the EW products developed with QIP funds. We are optimistic that these initiatives will soon translate into high-value contracts,” the management said.

ICICI Securities view on Data Patterns

 

Overall performance during the quarter improved substantially, led by pickup in execution. Though the margin was impacted during the quarter (due to execution of a lower margin contract), management expects it to normalize in the coming quarters.   ALSO READ | HAL's growth runway stays clear; brokerages keep 'Buy' ratings intact 

Order inflows remain healthy at ₹167 crore in Q2 & ₹350 crore in H1FY26 (led by orders for Brahmos and key production orders for the developed EW products). Order backlog stands at ₹1,287 crore including orders under negotiations (1.8x TTM revenue). The management remains confident of healthy order inflows (~₹1,000 crore in H2FY26 and ₹2,000-3,000 crore over the next 1.5-2 years) and achieving a revenue growth of 20-25 per cent over the next 2-3 years with EBITDA margins at around 35-40 per cent in FY26E, ICICI Securities said in a note.