Data Patterns (India) Ltd (DATAPATTNS) Q1 FY27 Results Analysis: PAT Falls 13%, Margin Compresses 526 bps

Data Patterns (India) Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 116.03 Cr (+16.81% YoY) and PAT growth of -13.49% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Q1 FY27 revenue grew 16.81% YoY but PAT declined 13.49% as cost pressure compressed EBITDA margin 526 bps to 27.04%. The full-year guidance of 20-25% revenue growth and 35-40% EBITDA margin remains achievable if execution cadence normalises, but Q1 margins are a concern.

Key Investment Insights

Key Positives

• Revenue grew 16.81% YoY to Rs.116.03 Cr, second consecutive Q1 above Rs.100 Cr.
• Cost of materials ratio improved to 26.48% from 57.55% YoY, reflecting favorable product mix shift.
• Cash and investments of Rs.422.68 Cr with zero debt as of 31 Mar 2026 (per pre-call note).
• QIP proceeds utilisation at 94.6% as of 30 June 2026, with most used for working capital and product development.

Risk Factors

• PAT declined 13.49% YoY despite revenue growth, due to higher cost structure.
• EBITDA margin compressed 526 bps YoY to 27.04%, well below the FY27 guidance band of 35-40%.
• Other expenses surged 63.51% YoY and employee benefits rose 16.9% YoY, driving cost pressure.
• Revenue growth of 16.81% is below the FY27 guidance of 20-25% (though Q1 is seasonally light).