Data Patterns Shares Jump 9% After Q2 Results, Nearly Double January Lows

Data Patterns Rally Puts Order Execution Back in Focus

A strong order book and management’s H2 outlook helped investors look past a sharp year-on-year decline in quarterly earnings.

The quarterly decline was steep, but margins held up

Data Patterns reported Q2 FY27 profit after tax of ₹21.97 crore, down 55.3% from ₹49.19 crore a year earlier. Revenue fell 55% to ₹141.44 crore from ₹313.40 crore. EBITDA declined to ₹31.44 crore from ₹68.48 crore.

The pressure on earnings was not accompanied by a drop in the EBITDA margin. It edged up to 23.6% from 22.3%, which the company attributed to better gross margins. That offers a more measured picture of the quarter: revenue and profit contracted sharply, while the margin on the remaining business improved modestly.

Chairman and Managing Director Srinivasagopalan Rangarajan described the period as muted after exceptionally strong execution in Q2 FY26, pointing to a high base. That explanation frames the comparison, but does not change the reported fall in revenue and PAT. The coming quarters will show whether deliveries pick up as management expects.

Order book supports the case for a stronger second half

The company’s reported order book of ₹1,742.07 crore compares with ₹926.48 crore on April 1. This provides a larger pool of work to execute, though the size of the order book alone cannot establish when revenue will be recognised. The pace of programme milestones and customer deliveries will be important to the financial outcome.

Data Patterns also said it had negotiated orders worth ₹955.76 crore that it had not yet received. Those opportunities may add to visibility if they convert, but they should not be treated as confirmed orders or as current revenue. The distinction matters when assessing how much of the company’s near-term outlook rests on executable business.

Management expects H2 FY27 to be stronger than H1 FY27, citing the order book and execution momentum, and said its full-year targets and guidance remain unchanged. The outlook is therefore a key test: the company needs to deliver the stronger second-half performance it has indicated while maintaining margins.

A sharp share rebound raises the delivery bar

The shares rose as much as 9.2% to ₹4,040.85 on the BSE, against the previous close of ₹3,700.10. At 2.40 p.m., they were up 8.8% at ₹4,024.80. The move followed a 1.6% decline during Muhurat trading and ended a three-session losing run. At the intraday high, the stock was about 90% above its 52-week low of ₹2,131, touched on January 27, 2026.

The rally suggests investors gave weight to order visibility and management’s H2 expectations despite the weak comparison. It does not, by itself, confirm that the projected improvement has arrived. For investors, the central question is whether execution converts the order book into stronger revenue and profit in the periods ahead.

Key Highlights

• Q2 FY27 PAT fell 55.3% year on year to ₹21.97 crore.
• Revenue declined 55% to ₹141.44 crore, while EBITDA was ₹31.44 crore.
• EBITDA margin improved to 23.6% from 22.3%, supported by better gross margins.
• The reported order book stood at ₹1,742.07 crore; negotiated orders of ₹955.76 crore were yet to be received.
• Management expects H2 FY27 to be stronger than H1 and kept its full-year guidance unchanged.

Investor Note: The order book and unchanged guidance offer reasons to watch Data Patterns, but the sharp Q2 decline and the gap between negotiated and received orders remain important considerations. Investors may look for evidence of delivery growth and sustained margins before treating the H2 outlook as achieved.