Revenue grew 16.81%, but Data Patterns' margin fell 5.26 points
Standalone Q1 net profit fell 13.49% as expenses grew 25.89%, while other income contributed 24.8% of pre-tax profit.
Filed 30 Jul 2026, 18:50 IST · after market close · Data Patterns (India) Ltd (DATAPATTNS)
Key takeaways
- Standalone revenue grew 16.81% year on year, but operating margin fell 5.26 percentage points as expenses grew 25.89%.
- Net profit declined 13.49% year on year to Rs 22.06 cr despite the revenue increase.
- Other income contributed 24.8% of pre-tax profit, making reported earnings less reliant on operations.
Price around the results
Revenue growth did not translate into profit growth
Data Patterns reported standalone revenue growth of 16.81% year on year in Q1FY27, but net profit fell 13.49%. Expenses grew faster than revenue, at 25.89%, which reduced operating margin by 5.26 percentage points. Sequentially, revenue fell 66.35% from Q4FY26, reflecting the large quarter-to-quarter volatility in reported business.
Costs drove the margin squeeze
Operating margin declined to 27.04% from 32.30% a year earlier because expenses expanded faster than revenue. Interest rose 2.82% year on year and depreciation increased 7.83%, adding to the pressure below operating profit. The tax rate was broadly unchanged, rising 0.28 percentage points, so the profit decline was mainly operational rather than tax-led.
Other income was material to pre-tax profit
Other income fell 30.71% year on year, yet still accounted for 24.8% of pre-tax profit. That makes the quarter's earnings quality weaker than the operating profit line alone suggests. Sequentially, the tax rate fell 1.21 percentage points, but this was not enough to offset the 28.88-percentage-point operating-margin decline.
Margin remains above the Industrials peer median
Data Patterns' 27.04% operating margin was 12.40 percentage points above the 14.64% median for the 31 Industrials peers that had reported the same quarter. The multi-quarter trend is uneven: margin fell from 37.73% in Q4FY25 to 22.27% in Q2FY26, then recovered to 55.92% in Q4FY26 before dropping in Q1FY27. The results were filed after market close, so there is no immediate market reaction to assess; across the last eight result reactions, the stock fell six times and rose twice, with a median absolute move of 5.53%.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹116 cr | ₹345 cr | -66.35% | +16.81% |
| Other income | ₹7 cr | ₹6 cr | +29.15% | -30.71% |
| Expenses | ₹85 cr | ₹152 cr | -44.31% | +25.89% |
| Operating profit | ₹31 cr | ₹193 cr | -83.73% | -2.21% |
| Operating margin (%) | 27.04% | 55.92% | — | — |
| Interest | ₹3 cr | ₹5 cr | -29.46% | +2.82% |
| Depreciation | ₹6 cr | ₹6 cr | +0.51% | +7.83% |
| Profit before tax | ₹29 cr | ₹188 cr | -84.32% | -13.17% |
| Tax | ₹7 cr | ₹50 cr | -85.03% | -12.19% |
| Net profit | ₹22 cr | ₹138 cr | -84.06% | -13.49% |
| EPS (₹) | ₹3.94 | ₹24.71 | -84.06% | -13.41% |
Operating margin of 27.04% compares with a Industrials sector median of 14.64% across 31 peers that have reported Q1FY27.
What to watch
- Whether operating margin recovers from 27.04% after the 28.88-percentage-point sequential decline.
- Whether expense growth moves below the 25.89% year-on-year rate against revenue growth of 16.81%.
- Whether other income's 24.8% share of pre-tax profit declines in the next quarter.