Data Patterns Shares Plunge 11% Following Margin Guidance for FY27
Data Patterns shares Ffall 11% after FY27 margin guidance spooks investors
Business Standard
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Shares of Data Patterns, a defense company, fell by 11% on the BSE after announcing a projected decline in Ebitda margins for FY27 to 35-40% from 56% in FY26. Despite a strong Q4 performance with a net profit increase of 21.3% year-on-year, investor concerns over future margins led to the stock's decline.
- 01Data Patterns reported a 13% year-on-year decline in net revenue for Q4 FY26, totaling ₹344.8 crore.
- 02The company's Ebitda increased by 29% year-on-year to ₹192.8 crore for Q4 FY26.
- 03Data Patterns' order book reached an all-time high of ₹2,062 crore, indicating strong future revenue visibility.
- 04Motilal Oswal maintained a 'Neutral' rating on Data Patterns, noting revenue came in lower than expected at ₹344.8 crore.
- 05The company aims for a revenue growth of 20-25% over the next two to three years.
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Data Patterns' share price dropped 11% on the Bombay Stock Exchange (BSE) following the company's announcement of its financial results for Q4 FY26 and its margin guidance for FY27. The defense firm reported a net revenue of ₹344.8 crore, down 13% year-on-year, although this was an improvement from the previous quarter's ₹173.1 crore. The company’s Ebitda margin for FY26 was 56%, but it projects a significant decline to 35-40% for FY27, alarming investors. Despite these concerns, Data Patterns reported a 21.3% increase in net profit to ₹138.4 crore for Q4 FY26 and an impressive order book of ₹926.5 crore at the end of March 2026. The chairman, Srinivasagopalan Rangarajan, highlighted the company's strong execution and order inflows, projecting a revenue growth of 20-25% in the coming years. Analysts from Motilal Oswal noted that while the revenue fell short of expectations, the Ebitda exceeded estimates, maintaining a 'Neutral' rating on the stock.
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The decline in share price may affect investor confidence and the company's market valuation, potentially impacting funding for future projects.
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