Data Patterns (India) Limited (DATAPATTNS) AI Stock Analysis

• Market Cap: ₹149.52B
• Dividend Yield: 0.3%
• Average Volume (3M): 25.18K
• Price to Earnings (P/E): 64.1
• Beta (1Y): 2.22
• Revenue Growth: 77.99%
• EPS Growth: 26.08%
• Country: IN
• Employees: 1,345
• Sector: Technology
• Sector Strength: 88
• Industry: Aerospace & Defense
• EPS (TTM): 8.80
• Shares Outstanding: 55,983,970
• 10 Day Avg. Volume: 17,393
• 30 Day Avg. Volume: 25,175
• PEG Ratio: 1.94
• Price to Book (P/B): 6.30
• Price to Sales (P/S): 13.41
• P/FCF Ratio: -75.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ₹2,792.00 ▲(2.06% Upside)

The score is primarily supported by strong financial performance—rapid revenue growth, high margins, and very low leverage. It is held back by negative free cash flow, a mixed/weak technical trend (below key longer-term moving averages with negative MACD), and a high P/E with a low dividend yield.

Positive Factors

Sustained Revenue Growth

A 36% year-over-year revenue increase signals durable demand for its defence and aerospace subsystems. Sustained top-line expansion supports scale benefits, deeper customer relationships and recurring engineering work, improving long-term program win probability and revenue visibility.

High and Stable Profitability

Elevated gross and net margins reflect strong product differentiation, pricing power and efficient cost structure in mission-critical electronics. Such margins provide cushion for R&D and integration work, supporting sustainable earnings and funding of long-cycle defense programs.

Very Low Leverage and Strong Capitalization

Minimal leverage and high equity ratio give the company financial flexibility to invest in programs, weather contract timing variability and pursue incremental production without debt strain. A healthy ROE indicates efficient use of shareholders' capital over time.

Negative Factors

Negative Free Cash Flow

Material negative free cash flow undermines the firm's ability to self-fund working capital and program ramp-ups. For a business with milestone billing and long production cycles, persistent negative FCF can force external financing, raising execution and cost-of-capital risk over months.

Declining Cash and Short-Term Liquidity

A fall in cash reserves reduces the buffer for milestone-driven outlays, supplier payments and prototype funding. In a contract-heavy defence business, weaker short-term liquidity increases reliance on receivable timing or financing, elevating operational and delivery risk.

Revenue Concentration on Program-Based Orders

Dependence on program awards and milestone billing creates lumpy revenue and limited near-term visibility. Contract timing and customer acceptance risks can cause volatile cash conversion and backlog swings, making consistent organic growth and forecasting more challenging over the medium term.

Data Patterns (India) Limited Business Overview & Revenue Model

Company Description

Data Patterns (India) Limited provides defence and aerospace electronics solutions in India. The company offers COTS boards, ATE and test systems, RF and microwave warfare products, electronic warfare products, cockpit and rugged displays, radar and radar subsystems, identify friend and Foe products, avionic systems, laser and electro optic systems, space systems, power supply products, naval systems, communication products, gimbal and actuator controller products, launch and fire control systems, high speed processors, digital IF processors and waveform generators, consoles, and navigation systems; and software and application products. It also provides hardware design, product development, ATE/functional test equipment, FPGA, software, microwave, mechanical product design, manufacturing, and environmental qualification testing services. The company was incorporated in 1998 and is based in Chennai, India.

How the Company Makes Money

Data Patterns generates revenue primarily through the sale of its electronic products and systems, which are tailored for various applications in defense, aerospace, and industrial sectors. The company's revenue model is anchored in long-term contracts and project-based sales, which provide a steady stream of income. Key revenue streams include the sale of custom-designed electronic systems, ongoing maintenance and support services, and integration of complex electronics into larger platforms. Additionally, Data Patterns benefits from strategic partnerships with defense organizations and government agencies, which facilitate access to lucrative contracts and enhance the company's market position. The company's focus on R&D also allows it to stay competitive and innovate, further contributing to its earnings.

Data Patterns (India) Limited Financial Statement Overview

Summary

Strong profitability and growth (2025 revenue +36.23%, gross margin 61.01%, net margin 31.30%, EBIT margin 44.91%) and a very low debt-to-equity ratio (0.004) support a high score. The main offset is weak cash generation, with free cash flow declining to -1257 million and operating cash flow to net income turning negative.

Income Statement

Data Patterns has shown strong revenue growth over the years, with a notable increase in total revenue from 2024 to 2025 by 36.23%. The gross profit margin in 2025 was 61.01%, indicating efficient cost management. The net profit margin also improved to 31.30%, suggesting strong profitability. The EBIT margin of 44.91% and EBITDA margin of 38.82% in 2025 further highlight the company's operational efficiency and potential for sustained earnings.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.004 in 2025, indicating minimal leverage and potential for financial stability. The return on equity (ROE) is high at 14.70%, reflecting effective use of shareholders' funds. The equity ratio of 81.98% highlights strong capitalization and financial resilience. However, the reduction in cash and short-term investments is a point to monitor.

Cash Flow

The free cash flow showed a negative trend in 2025, declining to -1257 million, which is concerning. Operating cash flow to net income ratio turned negative, indicating potential cash flow issues. However, the company has managed to reduce capital expenditure, which could improve future cash flows. Monitoring cash flow management will be crucial for sustainable growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.04B	7.08B	5.20B	4.53B	3.11B	2.24B
Gross Profit	4.36B	4.32B	3.48B	1.94B	2.25B	984.69M
EBITDA	3.03B	2.75B	2.68B	1.75B	1.40B	894.50M
Net Income	2.15B	2.22B	1.82B	1.24B	939.70M	555.60M
Balance Sheet
Total Assets	0.00	18.39B	16.92B	14.35B	7.07B	3.29B
Cash, Cash Equivalents and Short-Term Investments	4.53B	4.53B	6.55B	6.01B	1.77B	88.00M
Total Debt	0.00	61.70M	35.00M	24.90M	91.90M	371.70M
Total Liabilities	-15.08B	3.31B	3.68B	2.68B	1.32B	1.21B
Stockholders Equity	15.08B	15.08B	13.24B	11.67B	5.75B	2.08B
Cash Flow
Free Cash Flow	0.00	-1.26B	521.80M	-567.30M	139.90M	376.90M
Operating Cash Flow	0.00	-898.80M	1.39B	-172.40M	521.90M	433.80M
Investing Cash Flow	0.00	890.40M	-2.24B	-3.83B	-1.20B	87.60M
Financing Cash Flow	0.00	-496.40M	-425.30M	4.38B	2.36B	-448.60M

Data Patterns (India) Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2735.60
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DATAPATTNS, the sentiment is Positive. The current price of 2735.6 is above the 20-day moving average (MA) of 2505.55, above the 50-day MA of 2633.36, and above the 200-day MA of 2682.55, indicating a neutral trend. The MACD of -47.28 indicates Negative momentum. The RSI at 57.76 is Neutral, neither overbought nor oversold. The STOCH value of 86.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:DATAPATTNS.

Data Patterns (India) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEL	77 Outperform	₹3.28T	55.03	―	0.60%	16.58%	25.45%
PARAS	68 Neutral	₹57.43B	78.20	―	0.07%	24.92%	50.07%
DATAPATTNS	64 Neutral	₹149.52B	64.06	―	0.30%	77.99%	26.08%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BDL	61 Neutral	₹563.63B	97.19	―	0.33%	82.69%	18.17%
APOLLO	59 Neutral	₹92.44B	100.57	―	0.09%	39.76%	55.23%
ZENTEC	58 Neutral	₹127.77B	48.37	―	0.14%	9.71%	13.45%