Data Patterns Shares Surge Nearly 9% Despite 55.6% Decline In Q2 Net Profit As Management Maintains FY27 Growth Outlook

Data Patterns shares climbed nearly 9% on Monday, 9 November, despite the company reporting a sharp decline in its second-quarter earnings. The defence electronics manufacturer witnessed buying interest after its management reaffirmed its full-year guidance. The company expects stronger business performance in the second half of FY27.

The company announced its financial results for the quarter ended 30 September 2026 after market hours on Friday, 6 November 2026.

Data Patterns Share Price Rises Nearly 9%

Data Patterns shares opened at ₹3,674.95 on the BSE on 9 November 2026. The stock subsequently advanced 8.9% to reach an intraday high of ₹4,002.50.

At approximately 12:35 pm, the shares were trading at ₹3,983.05, marking a gain of 7.65%. The stock has delivered a return of 53.09% since the beginning of 2026. It has also gained 52.31% over the past year.

However, the shares have experienced some weakness in recent months. The stock declined 2.49% over the preceding month and 2.90% over the past six months.

Data Patterns Q2 Results: Net Profit Falls 55.6%

Data Patterns reported a 55.6% year-on-year decline in consolidated net profit for the second quarter of FY27. Profit fell to ₹21.82 crore from ₹49.19 crore in the corresponding quarter of FY26.

Revenue from operations dropped 56.7% to ₹133 crore during the July–September 2026 quarter. The company had recorded revenue of ₹307 crore in the same period last year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) decreased 54.3% to ₹31.13 crore. EBITDA stood at ₹68.06 crore in the year-ago quarter. Despite the decline in revenue, the company's EBITDA margin improved by 124 basis points. The margin increased to 23.41% from 22.17% in Q2 FY26.

For the six months ended 30 September 2026, revenue declined 37.4% to ₹264.78 crore. The company had reported ₹423.28 crore during the corresponding period ended 30 September 2025.

Profit after tax for the first half of FY27 stood at ₹44.03 crore, compared with ₹74.69 crore a year earlier. Meanwhile, the EBITDA margin for the six-month period increased to 25.2% from 24.7% in the previous year.

Management Maintains FY27 Guidance Despite Weak Earnings

Data Patterns attributed the decline in quarterly revenue to a higher base in the corresponding period last year. The company had recorded particularly strong project execution during Q2 FY26.

Chairman and Managing Director Srinivasagopalan Rangarajan indicated that several project milestones were progressing. He expects deliveries to accelerate during the second half of FY27.

The management anticipates stronger performance in the October 2026–March 2027 period compared with the first half of the financial year. Its expectations are supported by existing orders, fresh business inflows and progress in project execution.

The company also maintained its FY27 guidance. Management expressed confidence in meeting its annual targets despite the weaker September quarter. Separately, Data Patterns disclosed the acquisition of a 100% stake in ST Advanced Composites Private Limited (STAC). The transaction became effective on 17 September 2026.

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