Data Patterns reported a strong quarter, with revenue surging 3.4x YoY. This growth was fueled by a high contribution from the Development segment (up 106x YoY), as the company delivered a strategic contract of ~Rs 1.8 billion (taken at a competitive price considering possible longterm opportunities). However, this resulted in a 15.4pp YoY dip in Ebitda margin. Further, the Production/Service segments grew 24%/69% YoY.
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Motilal Oswal Report
Data Patterns India Ltd. reported a strong quarter largely due to the Rs 1.8 billion strategic order received by the company (this is not expected to repeat in the coming quarters).
The company's guidance of higher-order bookings in FY26 supports its near term outlook.
Further, long-term tailwinds, such as:
strong order book visibility,
differentiated product building competencies,
long-term relationships with clients, and
a strong pipeline of products, will drive sustainable growth.
It remains confident of a 20-25% revenue growth over the next two-three years.
We estimate a revenue/Ebitda/adjusted PAT CAGR of 28%/28%/28% over FY25-28.
We reiterate our Neutral rating with a target price of Rs 2,950 (premised on 40x Sep'27E earnings per share).
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