Add Data Patterns Ltd for the Target Rs. 4,060 by Choice Institutional Equities
Key Conference Call Highlights
Margin Profile
* Gross margin improvement driven by a favourable product mix and higher revenue
* Margin Drivers: Margin is strong, largely owing to completely in-house developed full-system solutions
* Strategic Bidding: The management purposely accepted a dilutive contract to develop full system capabilities and establish programme management credentials, positioning the business for higher-margin order inflows ahead
Working Capital & Future Guidance
* Cash Conversion Cycle: Improved meaningfully, from 428 days in the previous year to 365 days this year. The management aims to settle this to 320–340 days
* Revenue Guidance: The management targets 20–25% revenue growth in the short term
* Margin Guidance: The company expects to sustain a healthy EBITDA margin at 38–40%
Order Book & Revenue Visibility
* Surging Inflows: FY26 witnessed 216% YoY increase in order inflow, totalling INR 1,121 Cr
* Current Backlog: The reported order book stands at INR 926 Cr. The effective order pipeline is INR 2,062 Cr, which includes INR 1,090 Cr of fully negotiated contracts, expected to close in the next 1–2 months
* Repeat Production Orders: An additional INR 1,900 Cr in single-vendor production contracts are expected in the next 12 months based on previously delivered products
* Services Mix: 38% of the current order book comprises services, 41% is from development, while production contributes 21%
Key Defence Programmes & Execution
* BrahMos Seekers: The first variant of the development seeker is under execution, with production orders expected in 4–5 months
* AMCA: The company has developed the glass cockpit and mission management systems for the AMCA programme
* Electronic Warfare (EW): Fully in-house developed EW suites and selfjammers have been well-received by the Indian Air Force and are ready for flight trials
* Anti-drone & Radar Systems: Actively developing new solutions for drone detection, spoofing and jamming, alongside airborne fire control and surveillance radars
Export Traction & Global Opportunities
* Europe Export Success: Successfully developed, exported and sitetested transportable precision approach radars for a European nation
* Current Export Backlog: The export order book stands at INR 53 Cr
* Global OEM Engagement: International OEMs from Europe and the US are actively visiting and inquiring for complete systems
* Dedicated Marketing Push: A specialised export marketing team is being formed to aggressively target long-term defence modernisation programmes globally
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SEBI Registration no.: INZ 000160131
