Data Patterns (India) Limited — Annual Report FY2026
Quality Scores
AI Summary
Data Patterns (India) Ltd is a vertically integrated defense and aerospace electronics provider with over 35 years of operational history. The company has evolved from a subsystem supplier to a provider of complete systems like Radars, Electronic Warfare, and Avionics for platforms like LCA Tejas and BrahMos. It demonstrates high-margin profiles typical of high-IP defense businesses, bolstered by a strong order book of over 1,000 Cr. The recent QIP and focus on indigenous defense manufacturing (Atmanirbhar Bharat) position it as a key beneficiary of structural shifts in Indian defense…
Key Changes
The company has transitioned from a specialized test equipment manufacturer to a major subsystem and 'core building block' provider for national defense platforms. Over the last decade, it has moved up the value chain from simple hardware assembly to complex Electronic Warfare (EW), Radar, and Satellite systems. Strategic participation in flagship programs like Tejas LCA, LUH, and BrahMos has solidified its position as a Tier-1 or Tier-2 supplier. The shift from build-to-print to build-to-specification represents a significant leap in intellectual property ownership. The recent successful QIP and IPO proceeds have been directed toward scaling capacity and developing high-end hardware for future space and naval applications. This evolution reflects a deliberate move toward high-margin,…
Management Commentary
Led by Mr. Srinivasagopalan Rangarajan, the management demonstrates deep domain expertise and a conservative approach to leverage. Transparency is high, with consistent participation in earnings calls and detailed disclosures regarding order book movement and execution timelines. The leadership has successfully navigated the company from a small design house to a major listed defense player over three decades. There is a clear strategic focus on 'indigenization,' aligning perfectly with national defense objectives. Management stability is a core strength, with little to no churn in key leadership roles over the last decade.
Financial Highlights
The company exhibits exceptional margin profiles with OPM frequently exceeding 35-40%, reflecting significant value addition and proprietary technology. Revenue growth has been strong, supported by the execution of complex defense contracts and a transition toward larger system integration. Return on Capital Employed (ROCE) and Return on Equity (ROE) have historically been high, though they may moderate slightly due to the equity infusion from the recent QIP. The asset-light nature of their IP-led model ensures high profitability per employee. However, high levels of inventory and receivables, typical for defense contracts with long gestation periods, require constant monitoring.
Major Opportunities
- Vertically integrated defense player
- Zero net debt balance sheet
- Consistent 40%+ EBITDA margins
Major Risks
- Heavy reliance on government DPSUs as customers
- High working capital days (DSO > 150 days)
- Vulnerability to defense budgetary shifts
Unlock the full report
Full 20+ sections, charts, AI chat with the report, and PDF export are available with Premium.