Motilal Oswal's research report on Data Patterns India
Data Patterns (DATAPATT) reported a muted quarter, with revenue declining ~5% YoY due to delays in customer approvals (~INR270m). The Production/Service segment grew 25%/4% YoY, which was offset by a sharp 63% decline in the development segment. EBITDA margin contracted 340bp YoY, led by low-margin strategic contracts taken up by the company. The closing order book as of Jun’25 stood at INR8.1b, down 20% YoY. However, on the back of strong order book visibility, driven by additional BrahMos orders from the Air Force and Navy, management is targeting orders worth over INR10b. The company has retained its revenue growth/EBITDA margin guidance of ~20-25%/35-40%/for FY26
Outlook
We estimate a CAGR of 25%/25%/26% in revenue/EBITDA/adj. PAT over FY25-27. We reiterate our Neutral rating with a TP of INR2,500 (premised on 40x FY27E EPS).
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