Data Patterns: Rs 926 cr order book, but 85.8x PE

Data Patterns (India) Ltd (NSE: DATAPATTNS) designs and manufactures defence and aerospace electronics: avionics, radar, fire-control systems, automatic test equipment and naval systems. Its cockpit products are rugged multifunction displays from 3 to 20 inches, CEMILAC-qualified for fighter, trainer and helicopter platforms and DGCA-approved for civil aviation. What happened: FY26 revenue grew to Rs 925 crore from Rs 311 crore in FY22; net profit reached Rs 271 crore. But Q1 FY27 showed defence-programme lumpiness: revenue was Rs 116 crore (+16.8% YoY, down 66.4% QoQ); PAT fell 13.5% to Rs 22.1 crore on approval delays and higher facility costs. Avionics was 41.3% of revenue, radar 27.8%. Q1 orders totalled Rs 117.2 crore, led by a Rs 44.9 crore avionics development order from MoD. Post-quarter, BEL added a Rs 585.76 crore radar-electronics order on 21 August 2026. Why it matters: The order book was ~Rs 926 crore at FY26-end. Management sees a broader pipeline of Rs 2,654 crore and expects Rs 2,000 crore of fresh inflow in FY27. Data Patterns is net debt-free; FY26 operating cash flow turned positive at Rs 80.1 crore from negative Rs 89.9 crore in FY25. The Rs 10 crore acquisition of ST Advanced Composites adds radome capability, supporting bids for larger programmes. What I am watching: Order conversion from the Rs 2,654 crore pipeline, Q2 FY27 recovery after the Q1 dip, and export order book expansion from the current Rs 39 crore base. My stance: The defence-electronics structural story remains intact. At 85.8x PE and trading 4.2% above Motilal Oswal’s Neutral target of Rs 4,000, the valuation prices in near-perfect execution. I do not hold a position in Data Patterns (India) Ltd at the time of writing. This is not investment advice.