Data Patterns (India) Ltd

Award details

• Awarding entity: Bharat Electronics Limited (BEL), a domestic Indian entity.
• Nature and scope: Supply of radar electronics.
• Contract value: Rs 585.76 Crores (value of the order).
• Execution: To be executed as per contract.
• Promoter/group: No promoter group interest; not a related party transaction.
• Impact: Increases order book visibility and potential revenue.

Financial Performance

• Revenue from operations: INR116 crores, up 17% yearon-year.
• Gross profit: INR91.5 crores; gross margin 78.9%.
• EBITDA: INR31.4 crores; EBITDA margin 27%.
• PAT: INR22.1 crores; PAT margin 19%.
• Net debt-free; cash and investments INR530 crores as on 30 June 2026.
• Order book: INR920 crores as on 30 June 2026; negotiated total INR2,654 crores.

Order Book and Pipeline

• International order book stands at INR39 crores; fresh inflows targeted around INR2,000 crores in FY27.
• Drone and counter-drone traction shows initial orders; growth expected in 3-6 months.
• Negotiated orders not yet in order book include large contracts; conversion timelines span months.
• Acquisition of ST Advanced to augment composites and sensor ecosystem.

Outlook and Guidance

• Full-year revenue growth guidance: 20%–25%.
• EBITDA margins guidance: 35%–40%.

Capex and Investments

• Capex plan: INR200 crores plus over the next 1–2 years; infra like clean rooms and test lines.

Q&A Highlights

• Repairs and maintenance for revamp increased other expenses; ~INR2 crores provision for receivables.
• Revenue timing affected by customer approvals; no exactquantification provided.
• Contract conversions from negotiated orders expected in months; some approvals extended.
• Hawk radar hardware complete; software porting and flight trials expected in coming months.
• ST Advanced acquisition aims to enhance composites and build a sensor ecosystem for growth.
• Addressable market for defense and sensors around INR30,000 crores; potential repeat contracts ~INR10,000–12,000 crores.

AGM Details

• AGM held on 31 July 2026 at 11:00 IST via VC/OAVM.
• Attendance: 73 members representing 2,71,92,828 equity shares.
• Remote e-voting window: 28–30 July 2026; floor voting at meeting.

Key Resolutions

• Adoption of financial statements and auditors’ reports (Ordinary).
• Declaration of final dividend for FY2025-26 (Ordinary).
• Re-appointment of Vijay Ananth K as Director on rotation ( Ordinary).
• Re-appointment of Vijay Ananth K as Whole-time Director (Special).
• Re-appointment of Prasad Raghava Menon as Independent Director for second term (Special).
• Re-appointment of Sowmyan Ramakrishnan as Independent Director for second term (Special).
• Re-appointment of Anuradha Sharma as Independent Director for second term of 1 year (Special).
• Re-designation/Appointment of Mathew Cyriac as Independent Director (Special).
• Ratification of remuneration payable to Cost Auditor (Ordinary).

Voting status

• Voting results not disclosed in the filing.

Dividend

• Final dividend for FY2025-26 declared; amount not stated in the filing.

Directors & Appointments

• Vijay Ananth K reappointed as Director (retiring by rotation).
• Vijay Ananth K reappointed as Whole-time Director.
• Prasad Raghava Menon reappointed as Independent Director for second term.
• Sowmyan Ramakrishnan reappointed as Independent Director for second term.
• Anuradha Sharma reappointed as Independent Director for second term of 1 year.
• Mathew Cyriac redesignated/appointed as Independent Director.

Auditors

• Statutory auditors attended; no change in appointment announced.

Meeting Details

• Date and time: July 31, 2026 at 12:30 IST
• Type and mode: earnings conference call; audio recording

Participants

• Key company participant: Company Secretary and Compliance Officer

Purpose

• Discuss unaudited quarterly results for the quarter ended June 30, 2026

Additional Notes

• Audio recording of the call available on the company website

Business Overview

• Defense electronics maker: radars, EW, avionics; builds full systems from in-house building blocks.
• Export focus and Make-in-India strategy; vertical integration via STAC.
• Acquired ST Advanced Composites to strengthen composite manufacturing.

Quarter Highlights

• Q1FY27 revenue ₹1,160 Mn; EBITDA ₹314 Mn; net ₹221 Mn.
• Gross margin 78.9%; EBITDA margin 27.0%; ROE FY26 16.7%.
• Order book as on 30 Jun 2026: ₹9,277 Mn.
• Cash and investments: ₹4,659 Mn as on 30 Jun 2026.
• 100% stake in ST Advanced Composites acquired for ₹10 Cr.
• QIP funds utilized for product development in Radar, EW, and comms.

Financial Performance

• FY26 revenue ₹9,248 Mn; YoY growth 30.6%.
• FY26 EBITDA ₹3,710 Mn; EBITDA margin 40.1%.
• FY26 net profit ₹2,714 Mn; PAT margin 29.4%.
• Order book on date ₹9,277 Mn; pipeline ₹20-40 bn over 24 months.
• Maintains net debt-free status.

Capital Structure & Liquidity

• Liquidity robust with cash ₹4,659 Mn; limited debt disclosed.

Strategic Priorities & Outlook

• Outlook: 20-25% revenue growth over 2-3 years; FY27 EBITDA margin 35-40%.
• Capex plan: ₹150 Cr over next 2 years; 5-year capex ~₹185 Cr.
• Investing ₹135 Cr+ in new product development; focus on high-end radars and in-house IP.
• Exports and export-marketing expansion; Make-in-India acceleration.
• STAC acquisition strengthens vertical integration and composite manufacturing capabilities.

Risks & Mitigation

• Delays in customer approvals affected quarterly revenue; expected to normalize.
• Indigenous manufacturing focus supports long-term growth.

Governance & Leadership

• Acquisition of STAC 100% stake approved in Q1FY27; strengthens in-house capabilities.
• Promoter-Chairman & MD: Srinivasagopalan Rangarajan.

Target overview

• ST Advanced Composites Pvt Ltd is a Chennai-based advanced composite engineering firm.
• Turnover as on 31 March 2026 provisional: Rs 416.85 lakhs.
• Authorized share capital: Rs 50 lakh.

Transaction details

• Acquisition of 100% equity stake by Data Patterns.
• Cash consideration to promoters: Rs 1.50 crore; loan to target: Rs 8.50 crore.
• Form of consideration: cash; loan to target.
• Not a related party transaction; no promoter/group interest.
• Indicative completion period: about 3 months.

Strategic rationale

• Vertical integration bringing radome and RF-structure capabilities in-house.
• Expands addressable value per programme for DRDO and defence customers.

Target background

• Products/services: RF-transparent radomes, aerospace-grade structural components, defence composites.
• End-to-end capabilities: design, tooling, fabrication, assembly, testing.
• Core focus: aerospace, defence, UAVs, RF structures.
• Turnover history: FY23-24 157.66 Lakhs; FY24-25 442.19 Lakhs; FY25-26 416.85 Lakhs (provisional).
• Presence: India; Chennai-based.

Regulatory

• Regulatory approvals: Not applicable.

Financial highlights

• Total income Rs 123 crore in Q1 FY27, up from Rs 110 crore.
• Revenue from operations Rs 116 crore, up 17% YoY.
• Operational EBITDA Rs 31 crore; vs Rs 32 crore prior year.
• PBT Rs 30 crore; down from Rs 34 crore.
• PAT Rs 22 crore, 19% of revenue.

Strategic developments

• Board approved acquisition of ST Advanced Composites Pvt Ltd for Rs 10 crore.
• In-house composite parts for radar and other programs.

Order book and outlook

• Order book including negotiated Rs 2,654 crore.
• Current order book Rs 928 crore as of 30-Jun-2026.
• Order inflow of over Rs 226 crore since start of the year.
• Full-year guidance remains intact.

Financial results approved

• Unaudited standalone quarterly results for quarter ended 30 June 2026 approved.
• Limited Review Report by statutory auditors attached.

Auditor conclusion

• Independent auditor issued an unmodified conclusion on the results.

Labour Codes impact

• Exceptional item for Labour Codes wage definition included in FY2025-26 results.

Business structure

• Single defence electronics segment; no reportable operating segment.

Subsidiaries and associates

• No subsidiary/associate/joint ventures as of 30 June 2026.

QIP funds utilisation

• QIP total proceeds 487.74 crore; utilised 461.49 crore.
• Unutilised funds amount to 26.25 crore.
• Utilisation highlights include product development and EMI-EMC testing.

Regulatory/compliance notes

• Results prepared per Ind AS 34 and SEBI LODR.

Meeting Details

• Date and time: July 31, 2026, 12:30 PM IST.
• Type/Mode: Earnings conference call, virtual.
• Event/Organiser: Q1FY27 Earnings Conference Call hosted by Go India Advisors.

Participants

• Company participants: Chairman & Managing Director; Whole Time Director; Chief Financial Officer.

Purpose

• Purpose: Discuss financial results for the quarter ended June 30, 2026 (Q1 FY27).