Data Patterns lifts margin to 55.92% despite a 12.96% YoY revenue fall
Expenses fell 38.39% YoY, driving an 18.19-point margin gain; the initial stock decline followed its typical post-results direction.
Filed 14 May 2026, 18:50 IST · after market close · Data Patterns (India) Ltd (DATAPATTNS)
Key takeaways
- Standalone operating margin expanded 18.19 percentage points YoY to 55.92% even as revenue declined 12.96%.
- Revenue nearly doubled QoQ at +99.19%, while expenses grew 64.26%, lifting operating margin by 9.37 percentage points.
- The stock fell 6.44% by the next session, in line with its usual post-results direction as six of its past eight reactions were negative.
Price around the results
Lower revenue still produced higher standalone profit
Data Patterns reported standalone Q4FY26 revenue growth of -12.96% YoY, but operating profit rose +29.00% because expenses declined faster, by -38.39%. Net profit increased +21.30% to Rs 138.38 cr, while EPS rose +21.25% to Rs 24.71. Other income contributed only 3.01% of pre-tax profit, so the quarter's profit growth was mainly operating in nature.
QoQ execution lifted margins, despite higher finance costs
Revenue rose +99.19% QoQ, ahead of the +64.26% increase in expenses, expanding operating margin by 9.37 percentage points. Interest expense rose +111.36% and the tax rate increased 3.83 percentage points to 26.38%, which limited the conversion of the pre-tax profit increase into net profit growth. Other income remained a small 3.01% share of pre-tax profit.
Margin recovered for a second straight quarter
Operating margin has risen from 22.27% in Q2FY26 to 46.55% in Q3FY26 and 55.92% in Q4FY26, reversing the declines seen in the first half. The company stood 40.26 percentage points above the 15.66% median operating margin of 71 Industrials peers that had reported the quarter.
Management links FY26 to execution and capability expansion
Management said FY26 was marked by strong execution, order inflows and expanded capabilities across strategic defence programmes. It said the order-book pipeline could be Rs 20-40 billion over the next 24 months, and that it plans to build infrastructure for future contracts and a marketing organisation for exports. For FY27, management said it targets revenue growth of 20-25%, EBITDA margins of around 35-40% and continued net debt-free status.
The post-results fall was typical for the stock
The stock declined 3.34% on the first session after the results and 6.44% by the next session, with trading volume at 2.21 times the reference level. Across the past eight results, the stock fell after six and rose after two, with a median absolute move of 5.53%, making the direction usual and the second-session move somewhat larger than typical.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹345 cr | ₹173 cr | +99.19% | -12.96% |
| Other income | ₹6 cr | ₹3 cr | +102.14% | -46.70% |
| Expenses | ₹152 cr | ₹93 cr | +64.26% | -38.39% |
| Operating profit | ₹193 cr | ₹81 cr | +139.29% | +29.00% |
| Operating margin (%) | 55.92% | 46.55% | — | — |
| Interest | ₹5 cr | ₹2 cr | +111.36% | +49.04% |
| Depreciation | ₹6 cr | ₹6 cr | -0.51% | +51.80% |
| Profit before tax | ₹188 cr | ₹75 cr | +149.71% | +22.76% |
| Tax | ₹50 cr | ₹17 cr | +192.16% | +27.03% |
| Net profit | ₹138 cr | ₹58 cr | +137.36% | +21.30% |
| EPS (₹) | ₹24.71 | ₹10.42 | +137.14% | +21.25% |
Operating margin of 55.92% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.34% | -3.15% |
| Next session | -6.44% | — |
| 5 sessions | -1.02% | -1.14% |
| 15 sessions | +3.26% | — |
| 30 sessions | +12.25% | — |
Volume on the results session was 2.21× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- FY26 was marked by strong execution, robust order inflows and continued capability expansion across strategic defence programmes.
Guidance & outlook
- The company expects a strong order-book pipeline of Rs 20-40 billion over the next 24 months.
- The company targets 20-25% revenue growth and EBITDA margins of around 35-40% in FY27.
- The company intends to maintain its net debt-free status.
Expansion
- The company plans to build infrastructure to address future contracts.
New initiatives
- The company plans to build a marketing organisation for exports.
What to watch
- Whether standalone operating margin holds above 55.92% after the Q4FY26 surge.
- Evidence of the reported Rs 20-40 billion order-book pipeline converting into orders or revenue.
- Whether FY27 commentary remains aligned with management's 20-25% revenue-growth and 35-40% EBITDA-margin targets.