Shares of defence stock Data Patterns India Ltd (DPIL) have given multibagger returns, rising 225 percent over the last three years since August 2022. The stock gained 42 percent in the past six months, reflecting a medium-term recovery, but has declined 13 percent over the last year. It lost 5 percent in August so far after a 9 percent fall in July.
Before that, it gained 2 percent in June, 14.5 percent in May, 47 percent in April, and 17.5 percent in March, though it had fallen 35 percent in February and 10.6 percent in January. The defence stock hit a 52-week high of ₹3,778 in May 2025 and a low of ₹1,917.95 in February 2025.
Recently, Defence Minister Rajnath Singh stated that India’s defence production reached a record ₹1.50 lakh crore in FY25, up 18 percent from ₹1.27 lakh crore the previous year. Since 2019–20, production has surged 90 percent from ₹79,071 crore. Singh highlighted on X that “these numbers indicate a robust 18 percent growth over the previous fiscal’s output, and a staggering 90 percent increase since 2019–20.”
Q1FY26 Performance
Chennai-headquartered Data Patterns reported Q1FY26 profit after tax (PAT) of ₹26 crore, down 22 percent from ₹33 crore a year ago. Revenue slipped 5 percent to ₹99 crore from ₹104 crore in Q1FY25.
Brokerage Views
Jefferies maintains a “buy” rating with a price target of ₹3,400. It noted that Q1 sales missed expectations due to a ₹270 crore revenue deferment, which is expected in Q2. Despite this, the company maintained FY26 growth guidance of 20–25 percent. First-quarter order flow rose 4.8 times to ₹180 crore, with orders worth ₹320 crore so far. Jefferies expects in-house technology in the growing defence sector to triple topline and bottomline by FY30.
Nuvama Institutional Equities retained its price target of ₹3,700, stating that DPIL missed revenue/EBITDA estimates by 25/33 percent due to customer approval delays, which should normalize in the upcoming quarters. Order inflows were ₹1.8 billion, while YTD FY26 OI was ₹3.2 billion versus ₹3.5 billion in FY25, pushing the backlog to ₹8.1 billion. FY26 guidance includes OI of over ₹10 billion, revenue growth of 25–30 percent, and operating margins of 35–40 percent.
Choice Institutional Equities projects a 28 percent upside, assigning a target of ₹3,100. It highlighted the strong order book of ₹1,079 crore and a pipeline of ₹2,000–3,000 crore over 18–24 months, primarily in airborne radars, EW systems, seekers, and upgrade programs. Data Patterns invested ₹120 crore in new products, enhancing the total addressable market and substituting imports. Choice upgraded its rating to BUY from ADD, raising the target price from ₹2,915 to ₹3,100.
About Data Patterns India Ltd
Data Patterns India is a vertically integrated defence and aerospace electronics solutions provider, serving the indigenously developed defence products industry. Its offerings include COTS boards, ATE and test systems, space systems, and radio frequency and microwave solutions. The company designs COTS module products for rugged applications and automatic test equipment platforms.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
