This article first appeared on GuruFocus .
Release Date: May 15, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Data Patterns (India) Ltd ( BOM:543428 ) reported a significant increase in order inflows, with a 216% year-on-year growth, reaching approximately 1,121 crores.
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The company's order book stands strong at approximately 2,062 crores, providing robust revenue visibility for the coming years.
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Revenue for FY26 grew by 31% year-on-year to Rs 925 crores, while EBITDA increased by 35% to Rs 371 crores, indicating strong financial performance.
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Data Patterns (India) Ltd ( BOM:543428 ) is actively expanding its export business, with an export order book of approximately 53 crores and increasing engagement with international markets.
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The company maintains a debt-free status and a strong balance sheet, allowing flexibility for continued investment in R&D and infrastructure.
Negative Points
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The cash conversion cycle remains lengthy at 365 days, although there is an expectation of improvement to 320-340 days.
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There is uncertainty regarding the timing of order finalizations, particularly with government contracts, which could impact revenue projections.
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The execution of certain programs is dependent on customer requirements and timelines, which may not align with the company's delivery capabilities.
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The company faces competition from foreign OEMs, which could impact its ability to secure contracts and market share.
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There is a reliance on government agencies for contract approvals, which can lead to delays outside the company's control.
Q & A Highlights
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Warning! GuruFocus has detected 9 Warning Signs with BOM:543428.
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Q: Can you explain the strong EBITDA margins this quarter and what product mix contributed to it? What margins can we expect from the order book going forward? A: The strong EBITDA margins were due to our differentiated product line. Some contracts are taken at lower margins to build capabilities and future contracts. Our complete product development is done in-house, which contributes to higher margins. Future margins will depend on the overall business cycle and product mix. (Respondent: Chairman and Managing Director)
Q: You mentioned a 2,000 crore order book, with 1,000 crores already in the books and 1,000 crores expected. When can we expect the finalization of these negotiations? A: We expect the contracts to be finalized in the next one to two months, although timelines can vary due to government customer processes. (Respondent: Chairman and Managing Director)
Q: What is the status of your work with global OEMs, and when can we expect orders for the Bravo Seeker? A: We are in discussions with several global OEMs, particularly in Europe, and expect contracts in the next few months. For the Bravo Seeker, production orders are expected in four to five months, with no anticipated delays impacting revenue growth. (Respondent: Chairman and Managing Director)
Q: Can you provide details on the order book mix, particularly the proportion of services versus products? A: Out of the 1,000 crores in negotiated orders, approximately 100 crores pertain to services, with the rest being product delivery. This mix will not affect our projected revenue growth. (Respondent: Chairman and Managing Director)
Q: What is the expected execution cycle for the 1,500 crores of orders you will have in a month? A: Execution cycles vary based on customer requirements, with some programs spread over three years and others requiring quicker delivery. We project a 20-25% revenue growth, with potential for higher growth if orders are finalized early. (Respondent: Chairman and Managing Director)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
