Data Patterns (DATP.BO): Q2FY27 First Take: Earnings miss on weak execution; strong order inflows provide future revenue visibility

Data Patterns Q2FY27 performance was a miss across all key operating parameters, with revenue, EBITDA and PAT below our estimates by 10%, 47% and 52%, respectively. On the positive side, order inflows were strong at INR 9.3bn in Q2FY27, taking H1FY27 inflows to INR 10.5bn (nearly 3x YoY). The confirmed order book stood at INR 17.4bn, with an additional INR 9.6bn of negotiated orders awaiting formalization, implying a combined order book and pipeline of INR 27bn. Revenue declined 57% YoY to INR 1.33bn, though it improved 15% QoQ; gross margin was 69%, down 596bps versus our estimate; EBITDA declined 54% YoY to INR 314mn with margin at 23.5%, 1,651bps below our estimate; and PAT declined 56% YoY to INR 218mn. Management maintained its FY27 guidance of 25% revenue growth and 35-40% EBITDA margin, implying c.INR 9.1bn of revenue in H2FY27, necessitating a significant execution ramp-up. At the current market price, we believe that risk-reward is balanced as the sharp uptick in order accreti