Data Pattern Q1 FY27 Results (NSE: DATAPATTNS)
Signal: Margin pressure
The read
Q1FY27 revenue grew 16.8% YoY to ₹116 Cr, but EBITDA margin plunged from 42.9% to 33.3% driven by a 63.5% jump in other expenses (₹17.6 Cr vs ₹10.8 Cr) — the key negative surprise that reversed the margin trajectory. While gross margin held steady at 78.9%, the sudden opex spike turned profit growth negative (PAT down 13.5% YoY) and marked a break from the stable margin profile of recent quarters; the nature of these other costs will determine if this is a transient blip or a structural reset.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹116.03 Cr | +16.8% | -66.4% |
| EBIT | ₹32.76 Cr | -11.8% | |
| Net profit | ₹22.06 Cr | -13.5% | |
| EPS | ₹3.94 | -13.4% | |
| EBIT margin | 33.3% |
P&L walk
Standalone Q1FY27 saw revenue grow 16.8% YoY but a sudden spike in other expenses (+63.5% YoY) drove EBITDA margin down 960bps to 33.3%; PAT fell 13.5% to ₹22.06 Cr.
Key positives
- Revenue up 16.8% YoY to ₹116 Cr, indicating order execution continued on a healthy base.
- Gross margin stable at 78.9%, with only a 90bps YoY decline, suggesting pricing and input-cost control are intact.
- Employee cost ratio held steady at 36.7% of revenue, showing no runaway compensation pressure.
- Balance sheet likely remains debt-light: finance cost just ₹3.28 Cr (-29.5% QoQ).
Key concerns
- Other expenses surged 63.5% YoY to ₹17.61 Cr, driving the EBITDA margin crash of 960bps (33.3% vs 42.9%) — the single biggest drag.
- PAT down 13.5% YoY to ₹22.06 Cr, breaking the recent trend of strong profit growth; profit lagged revenue expansion.
- Q1 EBITDA margin of 33.3% is significantly below the full-year FY26 level (implied ~48% based on FY26 EBITDA of ~₹449 Cr on ₹925 Cr revenue), raising questions on the sustainability of margins if these other costs recur.
Research and educational content only. Not investment advice.