Defence stock with zero debt rises 100% from 52-week low; more upside ahead?

Shares of Data Patterns India (Ltd) have risen 100% from their 52-week low in nearly a year. The defence stock is in an uptrend rising 32% in a year with its simple moving averages turning green across various time periods. The stock fell to a 52-week low of Rs 1350.50 on March 3, 2025 and hit a 52 week high of Rs 3267.20.

The defence firm has zero debt on its books and a net profit CAGR of 60% in five years. Data Patterns reported a record-high order book of nearly Rs 1,868 crore (Rs 760 Cr orders confirmed plus Rs 1107.8 Cr negotiated/awaited) as of Q3 FY26 and provided strong revenue visibility for the next two to three years (around 2.6x FY25 sales).

In its Q3 earnings on February 5, the company said it remains committed to a revenue growth rate of 20-25% and EBITDA margins of around 35-40% in FY26.

Net profit rose 31% to Rs 58 crore in Q3 from Rs 45 crore in the quarter ended December 31, 2024.

EBITDA in Q3 increased 44% to Rs 78 crore in Q3 FY 2025-26 from Rs 54 crore in Q3 FY 2024-25.

EBITDA margin came at 45% for the quarter ended December 31, 2025. Revenue in Q3 rose 39% to Rs 179 crore in the quarter ended December 31, 2025 compared to Rs 128 crore in the quarter ended December 31, 2024. Revenue from operations increased 48% in the corresponding period. 

In the current session, Data Patterns stock rose 6.42% to Rs 2689 against the previous close of Rs 2526 on BSE. Market cap of the firm climbed to Rs 14,478 crore. 

In terms of technicals, the relative strength index (RSI) of Data Patterns stands at 49, signaling neither the stock is overbought nor oversold on charts. 
 
Brokerage Goldman Sachs has retained its Buy call on the defence stock with a target price of Rs 3,650. Q3 results beat estimates across parameters. The brokerage said its order book is strong 
with healthy inflows. 

Export order book at Rs 62.8 crore supports growth visibility, the brokerage added. 

Data Patterns is among the top picks of domestic brokerage Nuvama. The stock offers compelling multi-year growth potential, it said while assigning a price targte of Rs 3,570.

"We anticipate order inflows of Rs 550 crore, reflecting orders negotiated in the previous quarter, against a management-guided pipeline of Rs 1000 crore. This underpins a healthy pickup in execution, with revenues likely to grow 28% YoY, driven by the strong order inflow momentum seen in H1FY26. We expect OPMs to recover sequentially, as a strategically important but competitively priced order that weighed on margins in the last quarter has already been executed. However, the ongoing capex phase is likely to pressure the bottom line and return ratios over the medium term, in our view," said Nuvama. 

Data Patterns (India) Limited is an India-based vertically integrated defence and aerospace electronics solutions provider catering to the indigenously developed defense 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.