Data Patterns (India) FY26 Annual Earnings Summary

The ₹180 crore strategic contract executed at competitive pricing compressed EBITDA margins to 22%; similar future contracts could pressure margins.

₹550 crore of orders are negotiated but not yet confirmed; delays in MOD approvals could push inflows beyond H2.

Working capital days at 343, though expected to improve; any delay in customer payments could strain cash flows.

Management acknowledged that foreign companies with mature products and tie-ups with Indian firms pose competition, especially in export markets.

Orders negotiated but not yet awarded (₹1,100 crore) may face delays, impacting near-term revenue visibility.

Cash on hand is at lowest in eight quarters; working capital days at ~340, though expected to improve with collections.

Increasing number of players entering radar and EW space could pressure margins; management differentiates via IP and system-level offerings.

Government contract timelines are unpredictable; delays in approvals or customer readiness could impact revenue recognition.

Analyst noted that the ₹1,000 crore negotiated orders were expected earlier but have been delayed; management now expects conversion in 1-2 months.

Management acknowledged competition from foreign OEMs and domestic players like Astra Microwave, which could impact market share.

Business heavily reliant on government contracts; any slowdown in defense allocations could impact order inflows.

Despite improvement in cash conversion cycle, cash flow from operations has been weak historically; management expects further improvement but no specific target.