India’s aerospace and defense sector is valued at USD 27.1 billion in 2024 and is projected to reach USD 54.4 billion by 2033, growing at a CAGR of 6.99 percent. Defense production hit a record Rs 1.27 lakh crore in FY 2023-24, and exports reached Rs 21,000 crore, reflecting India’s rapid rise as a global defense manufacturing hub.
With a market capitalization of Rs 15,094.68 crore, the shares of Data Patterns (India) Ltd were trading at Rs 2,701.85 per share, decreasing around 4 percent as compared to the previous closing price of Rs 2,803.25 apiece.
Brokerage Recommendations
Nuvama Institutional Equities, one of the well-known brokerages in India, has maintained its ‘buy’ rating on this defence stock with a target price of Rs 3,700 apiece, indicating a potential upside of 37 percent from Tuesday’s price of Rs 2,698.30 per share.
Data Patterns ended FY25 with strong execution-led earnings, surpassing Q4FY25 revenue and profit estimates by 18 percent and 12 percent, respectively. Despite muted order inflow of Rs 31.2 crore, the order backlog stands at Rs 730 crore, matching FY25 sales. Nuvama highlighted its robust execution and readiness to tap significant market opportunities.
Nuvama projects a 30 percent revenue CAGR for FY25–27E with average operating margins of 38–39 percent, driving a 25 percent CAGR in EPS. It has raised FY26E and FY27E EPS estimates by 23 percent and 21 percent, respectively, and increased the target P/E multiple from 45x to 60x, citing improved business visibility.
Also read: Navratna stock jumps 9% after company’s net profit increases by 311% YoY
Q4 Highlights
Recently, the company reported positive Q4 results, revenue increased by 238 percent on a quarter-on-quarter basis from Rs 117 crore in Q3FY25 to Rs 396 crore in Q4FY25. Further, revenue increased by 118 percent year on year, from Rs 182 crore in Q4FY24 to Rs 396 crore in Q4FY25.
The company’s net profit increased by 153 percent on a quarter-on-quarter basis, from Rs.45 crore in Q3FY25 to Rs. 114 crore in Q4FY25. Further, net profit magnified significantly by 61 percent year on year from Rs 71 crore in Q4FY24 to Rs 114 crore in Q4FY25.
FY26 Guidance
Data Patterns has outlined a strong growth outlook with a Rs 2,000–3,000 crore pipeline over the next 18–24 months, FY26 order inflow guidance above ₹1,000 crore, 20–25% revenue growth, 35–40% OPM, ₹150 crore organic capex, and a strategic shift to higher production sales to improve cash conversion.
Operational Highlights
In FY25, Data Patterns generated Rs 7,084 million in revenue, with 55.9 percent earned in Q4. Radar systems contributed the most at 51.9 percent, followed by Electronic Warfare at 16.7 percent. Other segments include AMC, FCS, Avionics, ATE, Naval, and Others, reflecting a diversified portfolio with strong Q4 performance.
In FY25, Data Patterns closed with an order book of Rs 7,298 million. Radar (55.5%) and Avionics (32.1%) dominated the diversified portfolio. Total order inflow was Rs 3,551 million, with Rs 7,084 million executed. The international order book remained strong at Rs 1,070 million, reinforcing global demand and business resilience.
Data Patterns (India) Limited is an integrated defense and aerospace electronics solutions provider catering to the indigenously developed defense products industry. The Company offers COTS boards, ATE and test systems, RF and microwave products, electronic warfare products, cockpit and rugged displays, radar, and others.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
