Shares of Data Patterns (India) rose nearly 9 per cent to Rs 4,038.70 on Monday, November 9, after the defence electronics company announced its September quarter results.

The stock has gained 53.85 per cent so far in 2026, significantly outperforming the Nifty 500, which has declined 1.64 per cent during the same period.

However, the company's second-quarter performance remained weak, with revenue and net profit declining sharply on a year-on-year basis. This has raised questions about whether the stock can sustain its rally following the results.

Data Patterns Q2 results FY27

Data Patterns reported a 55 per cent year-on-year decline in consolidated net profit to Rs 21.82 crore in Q2 FY27, compared with Rs 49.19 crore in the corresponding quarter last year.

Revenue from operations declined 57 per cent to around Rs 133 crore from Rs 307 crore in the year-ago period. EBITDA also fell to Rs 31 crore from Rs 68 crore. However, EBITDA margin improved to 23.3 per cent from 22.02 per cent in the corresponding quarter last year.

On the order front, the company secured fresh orders worth Rs 929 crore during the quarter, registering a 475 per cent increase year-on-year. Its total order inflow for the first half of FY27 stood at Rs 1,046 crore, while the order book reached Rs 1,724 crore.

Goldman Sachs on Data Patterns: Downgraded to Neutral

Global brokerage Goldman Sachs has downgraded Data Patterns to 'Neutral' from 'Buy', with a target price of Rs 4,165.

According to the brokerage, the company's Q2 FY27 performance missed expectations across key operating parameters. Revenue, EBITDA and profit after tax (PAT) were 10 per cent, 47 per cent and 52 per cent below its estimates, respectively.

However, Goldman Sachs highlighted strong order inflows as a positive factor. Order inflows stood at Rs 930 crore in Q2 FY27, taking first-half inflows to Rs 1,050 crore, nearly three times the year-ago level.

The confirmed order book stood at Rs 1,740 crore, with another Rs 960 crore of negotiated orders awaiting formalisation. This takes the combined order book and pipeline to around Rs 2,700 crore.

The brokerage noted that management had retained its FY27 guidance of 25 per cent revenue growth and 35-40 per cent EBITDA margin. This would require a sharp improvement in execution during the second half of the financial year.

Goldman Sachs believes the risk-reward at the current market price is balanced, as strong order accretion is offset by weak execution and margins over the past two quarters.

Goldman Sachs' target price of Rs 4,165 against the current market price of Rs 4,038.70 implies an upside of approximately 3.1 per cent.

Data Patterns share price performance

Data Patterns shares have gained 53.85 per cent so far in 2026, outperforming the Nifty 500, which has declined 1.64 per cent during the same period. However, the stock has declined 2.03 per cent over the past month, while it has gained 4.22 per cent in the past week.