Data Patterns: Why defence stock is up 8% today despite 56% fall in Q2 net profit 

Shares of defence major Data Patterns (India) Ltd rose over 8% on Monday after the management in an earnings concall said it expects H2 FY27 revenue to exceed H1 FY27 revenue supported by a health order book. Data Patterns shares gained 8.16% to Rs 4002 in the current session. Market cap of the firm rose to Rs 22,321 crore.

With today's rally, the stock has gained 87% from its 52 week low of Rs 2131 on January 27, 2026.

The defence stock hit a 52-week low of Rs 2131 on January 27, 2026.

The multibagger stock has risen 53% in 2026 and gained 52% in a year. It has more than doubled investor wealth in three years with returns of 112%.

The stock has a one-year beta of 0.2, indicating low volatility during the period.

In terms of technicals, the relative strength index (RSI) of Data Patterns stands at 37.5, signaling the stock is neither oversold nor overbought on charts. Data Patterns stock is trading higher than the 5 day, 10 day, 200 day but lower than the 20 day, 30 day 50 day, 100 day and 150 day moving averages, which indicates mixed investor sentiment.

Meanwhile, Goldman Sachs has  a Neutral call on the stock with a target price of Rs 4,165. The brokerage said Q2FY27 revenue, EBITDA and PAT missed estimates by 10%, 47% and 52%, respectively. The firm's Q2 order inflows stood at Rs 930 crore, taking H1FY27 inflows to Rs 1,050 crore, nearly 3x YoY, the brokerage said addign that the defence major's confirmed order book stood at Rs 1,740 crore, with an additional Rs 960 cr in negotiated orders awaiting formalisation.

The combined order book and pipeline for the company stood at Rs 2,700 crore. The management retained FY27 guidance of 25% revenue growth and 35–40% EBITDA margin. Goldman Sachs sees balanced risk-reward amid strong order accretion but weak recent execution and margins.

Q2 earnings 

The company reported a 55.6% year-on-year fall in its consolidated net profit for the second quarter of FY27. Net profit came at  Rs 21.97 crore in Q2 FY27 compared with Rs 49.19 crore in Q2 FY26. Revenue from operations fell 56.7% to Rs 133.25 crore from Rs 307.46 crore in the year-ago period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 54.2% year-on-year to Rs 31.44 crore in Q2 from Rs 68.48 crore. EBITDA margin improved to 23.59% from 22.27% in the corresponding quarter last year.

About Data Patterns

About Data Patterns (India) Limited is an India-based vertically integrated defence and aerospace electronics solutions provider catering to the indigenously developed defence products industry. Its portfolio includes COTS Boards, ATE and Test systems, Space Systems, and Radio Frequency and Microwave. It designs COTS module products that are used in rugged applications and automatic test equipment platforms.