Thank you. Good morning, everyone, and welcome to Data Patterns India Limited call to discuss the quarter four and FY '26 earning call.

We have the senior management of the company on call, Mr. S.

Rangarajan, Chairman and Managing Director, and Mr. Subramanian, Chief Financial Officer.

We must remind you that the discussion on today's call may include certain forward-looking statement and must be therefore viewed in conjunction with the risks that the company may face. May I now request Mr.

Rangarajan, sir, to take us through the company's business outlook and financial highlights, subsequent to which we will open the floor for Q&A. Thank you and over to you, sir.

Thank you, Prayasi. A good morning, ladies and gentlemen, and a very warm welcome to all of you to the quarter four and full-year FY '26 earnings call of Data Patterns India Limited.

We sincerely appreciate your continued trust, support, and participation. I hope all of you have had the opportunity to review our earnings presentation, which has been uploaded on the stock exchanges and our company website.

Before Venkat takes you through the financial performance in detail, I would like to briefly share some key business and operational highlights for the year. FY '26 has been a significant year for Data Patterns, marked by strong execution, healthy order inflows, continued capability expansion, and increasing participation across strategic indigenous defense programs.

During the year, we continued to strengthen our position across radars, electronic warfare systems, avionics, communication systems, and strategic defense electronics, supported by our strong in-house design and engineering capabilities built over nearly three decades. One of the key highlights of the year has been a strong momentum in order inflows.

During FY '26, the company recorded order inflows of approximately ₹1,121 crores, increase of 216% year-on-year, reflecting healthy demand across multiple defense and aerospace programs. The order inflows were well diversified across radar systems, avionics, electronic warfare, services, and strategic electronics applications, demonstrating increasing customer confidence in our technological capabilities and execution track record.

The order book as on date stands at approximately ₹2,062 crores, including orders negotiated, which provides a strong revenue visibility over the coming years. In addition, we continue to see a healthy pipeline of opportunities across radar systems, electronic warfare, and advanced defense electronics.

Other than the order book, additional single-vendor contracts based on already supplied products which can fructify into contracts this financial year stands at ₹1,900 crores. Further, based on previous delivery and performance of strategic systems supplied, our customers would like to place further contracts on such programs leading to significant order book creation.

We could get visibility of these contracts, including timelines, during the year. Our earlier investments made towards developing EW suites, including self-protection jammer pods for Indian fighter aircrafts, have been well received by IAF, and we are poised to take the next steps for flight testing.

This will lead to revenue during the medium term. The opportunity is being addressed by Data Patterns with in-house developed large systems already delivered to customer as immediate requirement to address strategic space-based surveillance and mitigation, allowing Data Patterns to substantially increase revenue in the coming years towards building an order book of at least three years' revenue, ensuring predictable growth.

We are entering into an exciting phase in India with the defense and aerospace industry set to grow substantially to reduce reliance on imports, especially in this geopolitical situation. Further, with the advance of AI in all phases of business, Data Patterns has leapfrogged into absorption of AI for processes as well as technology and products.

This will allow Data Patterns to introduce new world-class products quickly to address the awning gap on Indian capabilities and products, necessitating imports and reliance on foreign OEMs to meet our critical defense needs. We have also repositioned some of our products to address the growing requirement of drone detection, spoofing, and jamming with both radars and ESM products.

These are in advanced stage of development and expect to bring in additional revenue in the medium term. We are investing and expanding our product development across radars for airborne platforms, including surveillance and fire control, including maritime applications, which were hitherto the domain of Indian development agencies and foreign OEMs.

We expect these to bring in revenue over the next few years and also allow exports of complete products. Our export business also continued to progress steadily during the year.

The export order book as on date stands at approximately ₹53 crores, and exports remain an important strategic pillar of our long-term growth roadmap. We are actively engaging with customers in Europe and other international markets while strengthening our export-oriented marketing and business development initiatives.

We continue to execute repeat businesses from UK and expect export momentum to improve meaningfully as our complete system capabilities mature further. We believe that our revenue from exports will increase starting this year as most countries are increasing the spend on defense giving the present geopolitical situation.

We believe that the products and capabilities offered by Data Patterns will allow even Western countries to procure from Data Patterns, leveraging our capabilities and much shorter delivery timeframes meeting their requirement. During the year '24-'25, we also achieved an important milestone with the successful development and export of transportable precision approach radars to a European country, including successful site acceptance testing.

This reflects not only our technological capabilities, but also the growing acceptance of Indian defense systems and engineering expertise in international markets. We are also getting additional inquiries for these products from various countries.

We believe the global defense industry is entering a multi-decade investment cycle driven by rising geopolitical uncertainties, accelerated modernization programs, and increasing focus on self-reliance in defense manufacturing. Advanced electronics, radar systems, electronic warfare, and intelligent surveillance capabilities are becoming central to modern defense preparedness globally.

This creates a significant long-term opportunity for India's indigenous defense ecosystem through the strong in-house design capabilities, advanced engineering expertise, and proven execution track record. Data Patterns is well positioned to capitalize on this opportunity.

Coming to our financial performance, FY '26 has been another strong year for the company. Revenue in FY '26 grew by 31% year-on-year to ₹925 crores, while EBITDA increased by 35% year-on-year to ₹371 crores.

Looking ahead, the outlook for Indian defense sector remains extremely strong. We remain committed to delivering sustainable and profitable growth while continuing to invest in future technologies, strengthening our complete systems portfolio, and maintaining a strong balance sheet.

We continue to target revenue growth of around 20% to 25% over the short term while maintaining healthy EBITDA margins of 38% to 40% and preserving our net cash status. Most importantly, beyond financial performance, we remain deeply committed to contribute towards India's journey of technological self-reliance and strategic defense capability development.

With that, I would now like to hand over the floor to our CFO, Mr. Subramanian, to take you through the financial performance in greater detail.

Thank you, sir. Good morning, ladies and gentlemen, and thank you all for joining us today.

We are pleased to report another strong year of operational and financial performance for Data Patterns. FY '26 reflects the continued strength of our execution capabilities, resilient business model, and increasing demand across strategic defense and aerospace programs.

Let me take you through the key financial highlights for the quarter and full year FY 2025-26. Revenue from operations for FY '26 stood at ₹925 crores as compared to ₹708 crores in FY '25, registering a healthy growth of 31% year-on-year.

Gross profit for the year increased by 35% year-on-year to ₹585 crores due to increase in revenue and favorable product mix, while gross margins improved to 63% compared to 61% in FY '25. EBITDA for FY '26 stood at ₹371 crores as against ₹275 crores in the previous year, reflecting a growth of 35% year-on-year.

EBITDA margins improved to 40%, supported by operational efficiencies and improved absorption of the fixed costs. Profit after tax for FY '26 stood at ₹271 crores, registering a growth of 22% year-on-year, while PAT margin remains healthy at 29%.

Coming to the quarterly performance, Q4 '26 revenue stood at ₹345 crores. While the revenue was lower by -13% year-on-year due to timing of execution of certain programs, revenue nearly doubled sequentially with a growth of 99% quarter-on-quarter, reflecting strong execution momentum during the quarter.

Pertinent to also note that share of fourth-quarter revenue was 37% in FY '26 as against 55% in FY '25. Gross margin for Q4 FY '26 improved significantly to 73% as compared to 49% in Q4 of last year.

EBITDA for the quarter stood at ₹193 crores with EBITDA margins at 56%, while PAT for the year PAT for the quarter stood at ₹139 crores with PAT margin of 40%. From a working capital perspective, we continue to see improvement in operational efficiency during FY '26.

Our cash conversion cycle improved meaningfully to 365 days in FY '26 from 428 days in FY '25, reflecting strong execution, better inventory management, and continuous focus on disciplined working capital control. As of March 2026, our order book stood at approximately ₹926 crores, while including negotiated and expected orders, the order book pipeline remains strong at around 200- ₹2,062 crores.

Our order book continues to remain diversified across radar systems, avionics, electronic warfare, communication systems, and strategic electronic applications. The company continues to maintain a strong balance sheet and remains a debt-free company.

We believe our healthy liquidity position and disciplined capital allocation strategy provides us with the flexibility to continue investing in R&D, infrastructure, advanced technologies, and manufacturing capabilities. Going forward, we remain optimistic about the long-term opportunities in the domestic and international defense sector and continue to focus on execution, operational efficiency, technology development, and profitable growth.

With that, we would like to open the floor for question answers. Thank you.

Hi. Thank you for this opportunity, sir, and congratulations on a great EBITDA margin and surpassing the revenue and guidance for the year.

Sir, my first question is on the lines of your margin profile itself. You have told us that you have told so this this quarter, you had some great EBITDA margin.

Can you help us understand as to what is the which product mix has led to such strong EBITDA margin, and out of those order book, what kind of EBITDA margins can we expect going ahead?

You see, we have a differentiated product line. The margins for Q2 was much lesser because I earlier explained in that call also that there is a strategic program where we've taken a contract at a lower cost and the margin, but it's built as our capability to build a complete system and also the program management office, which is necessary, other than also demonstrating mechanical capabilities, which is not when we talk we're an electronics company.

These are the takeaways from this contract and also our our commitment that these will also lead to future contracts. We take some contracts with lower margin consciously to ensure that we build a capability product capability and also which give allows us future expansion.

That is the reason the last-year quarter quarter-to-quarter differences were there, and though there's an increase in revenue in quarter two, and overall revenue has been as per guidance, slightly better than guidance. The rest of the margin which you talk about is that is normally where our complete product development is done in-house, where all the IP is created in-house.

We don't import anything and integrate. This is in nature of exactly what we normally do.

Since there is no bought-out in those last-quarter revenue, and it is all our own full systems which has been developed by us as told, the margin profile was seemed different. You need to look at not, you can't give a direct guidance on, contract to contract how it will go in terms of EBITDA or margin, because this is the overall business cycle, and a very many products, and we take some products at different kinds of pricing based on our one, ability to absorb it to to see how the future business is going to look at, and the business prospects, we take a call on that and take a decision where to make an offer, how to quote it.

This is what we've done. Now that the opportunities are much larger and becoming much much larger, we need to build a capability upgrade into in the in our company to address larger opportunities going forward.

I think I've answered your question. If anything else, please ask again.

Yes, sir. Sir, that was very much clear.

Another thing on that. You mentioned that you have currently ₹2,000 crore of order books, of which 1,000 roughly ₹1,000 crore is already in the books and ₹1,000 crore expected.

Any timeline on that as to when we can expect finalization of those ₹1,000 crore where negotiations are completed?

I think in the next 1 to 2 months' time, we should expect the contracts to happen.

Okay.

These are all government customers. I can't predict for them, but our feeling is that it should happen in the next 1 to 2 months' time.

Over and above that, we are expecting orders to the tune of 15 to 20 billion for FY '27?

See what has happened is we have developed products earlier and those products, during the course of this year, will have repeat orders. That has been projected as ₹1,900 crores.

These are all single-tender orders just expected during the course of the year. The timing is not exactly visible.

That is why I said during the course of next 12 months, we should get additional order book, which is based on already developed products and delivered and accepted by customers and repeat requirements are already quoted for in some situations, and inquiries have also come in for other. Wherever we're talking about ₹1,900 crores, we've already quoted for those requirements.

Only thing is some of the negotiations may have to happen, and the timelines are not exactly in our control, but it should happen during the course of the year.

Got it, sir. Got it.

Last question on the production side. In this order inflow, what will be the proportion of the production order inflow which are expected to be a short-cycle orders?

Any indication on those that out of those ₹2,000 crore or maybe ₹1,000 crore, how much will be the quantum of the production orders?

I can't give you exact ratio now. What is already delivered, I said if you get a repeat order of ₹1,900 crores, that will all be production orders because already we've done the development.

On the existing ₹2,000 crores, some are service orders, some are already developed orders, and some are new development which is going to take place. I don't have the exact mix and percentages.

Whatever we've taken up, even for development initiatives we're taking up, we're looking at it only with the perspective of future requirements are there for such products and programs. Whatever we develop, we develop as building blocks and they have future requirement in other applications as well.

That is how the development cycle is actually managed by the company. I can't give you exact number, but there will be a larger size production contracts where overall business we expect as we go along.

Got it, sir. I have few more questions, but I'll get back on the queue.

Thank you so much.

Hi, good morning, everyone. Thank you for the opportunity.

Sir, I have two questions. You indicated that you're working with global OEMs.

I wanted to understand what's the traction around that and if we have anything apart from UK. Secondly, when can we expect to get the order for BrahMos seeker?

Certain media articles indicate that the production is hampered. Will it have a material impact on our revenue growth in FY '27?

Okay. First question is global OEMs.

A number of them have started visiting us and quite impressed with whatever we've achieved in terms of capabilities and products. Similar products are required in Europe.

Inquiries have started coming from Europe for building such products, and they quite like our prices and delivery term. I think in the next 2-3 months' time or 4 months' time, we should start getting some contracts from these global OEMs, which will lead into some development initiatives initially, but then which will lead to year-on-year and quarter-to-quarter delivery for their actual military programs for which they are addressing their opportunities.

This is going to be not a one-off system, but it will be multiple systems based on what we already developed and modified to make their OEM requirements. This is one part of the story on exports concern.

We also want to now expand our own export team, build a team to address exports because we believe that there is going to be increased look at India with our capabilities and delivery models, which Europe and US and other countries would be looking at very seriously. I think this is a growing business.

Since we have done a lot of product development in-house which matches their requirement immediately, I think there will be a lot of traction once we put the marketing team to address the opportunities. We are going not just UK, but other than UK also in Europe, inquiries have started coming in.

Other people have started visiting us also from US, from civil aviation and things like that people have started visiting us and they are taken interest in our capabilities and inquiries have started coming in. Regarding BrahMos seekers, the first variant of the development seeker order is under execution.

Once that execution is completed, I think in the next 4-5 months' time, the production orders would start coming in. They've indicated a production orders and they want it to be delivered before next year middle is what the customer is saying.

I don't think there is going to be any distress on delivery timelines as far as BrahMos is concerned with our kind of seekers and systems. Whatever orders was given in 3-4 months back in BrahMos, we've already delivered.

By March, we delivered it. Our timelines for delivery is quite fast with respect to other competitors which were there in this line of business.

I don't think we'll have a problem in terms of revenue and anyway, this is part of the expected order of ₹1,900 crores is what we've projected and not on the orders-on-hand situation. I don't think there'll be a revenue upset based on BrahMos even if there's a delay.

I don't think there's going to be a delay.

Understood, sir. That's helpful.

Thank you.

Thanks for the opportunity, and congratulations, team, on a wonderful result. Sir, my first question would be with regards to the current order book.

We have some ₹1,000-odd crores of order book, and we expect another ₹1,000-odd crores of negotiated orders to flow through in the coming month or two. Just wanted to understand our order book mix, if I look at today, the share of services in that is roughly ₹350-odd crores, the order book as at the end of 4Q.

When you talk about the negotiated orders, could you give us an indication as to what part of this would pertain to services and what part would pertain to products?

I think on this ₹1,000-odd crores which I have said, maybe about ₹100 crores will be on services. The rest is on product delivery.

Got it. That would mean that in the next 2 months, we should be sitting again, not understanding that the orders can be delayed, but our expectation is that we should be sitting at a product order book of about ₹1,500-odd crores.

Would that be correct? ₹575 that you already have and some ₹900-odd crores that you'll be getting.

Around that or even slightly higher.

Got it, sir. Now I want to understand, since a large part of our product portfolio and because of our faster execution timeline, the execution has largely been short cycle.

What do you expect the execution cycle to be on this ₹1,500 crores of orders that you'll be sitting at in a month or two?

That is not whether we can execute or not, it depends on the program requirements. Some of the program requirements are spread over 3 years' delivery, some is delivered in a few months.

That varies from the contract to contract. That will be mostly based on customer requirements, not on our ability to deliver.

No, sir. I get that.

What I'm trying to understand is that based on the delivery schedules that you have, what is your expectation in terms of order execution cycle, if you can break it down, and what do you expect, again, we're not holding you to this, but what do you expect to

We have projected about 20% to 25% revenue growth. We won't have a problem on those things, so that will happen.

If the other ₹1,900 crores things come in early, some part of it can be executed this year also. That will also bump up our revenue model.

Since we don't have the exact timing, we've only projected this 20% to 25% growth. Once the contracts are on hand, we already developed these products, our execution timelines can be matching customer requirements or even earlier.

Depending on that, the delivery model will happen. At the present moment, we don't want to wage any kind of saying that we will do this this way, because we know we're confident of doing this.

This is a base point. I think as the contracts start coming in larger contracts, our projections may vary from quarter to quarter.

Got it, sir. That's very helpful.

Sir, another point was in the PPT

Got it. No worries.

Yeah. I just wanted to understand about the order inflow for the year.

You've said around ₹1,500 to ₹2,000 crores. This is apart from the ₹1,100 crores that's been negotiated, right?

Yes.

Okay. Then would it be correct to assume that you'll be ending the year with around ₹3,500 to ₹4,000 crores of order book?

No, we'll also be executing contracts which is coming in, no?

What would be the closing order book for the year?

I think it's a bit early for that. We will come towards the year-end before we give you the numbers.

It's a bit early because there are a lot of programs we're working on. Some of the large contracts and strategic programs also the order may start coming in.

If the order starts coming in, the order book size will grow, plus the export revenue which is going to happen. There are so many areas of product development and we're making offers to customers.

If it was successful, we will be able to have a very healthy order book going ahead. That is why in the opening remarks, I mentioned that this is the first time I've given a all-rounded view on the market and where we are in terms of investment models and product models, and how the business is supposed to scale in the short and medium term.

I've given you overall perspective on existing repeat business from existing deliveries, new things which can happen, and in other areas where we are focusing on product development also, plus the export and the repeat business which is expected. We've also said that if some of this what we predicted happens, we'll have a healthy product order book, which will also give us the clarity of quarter-to-quarter growth over the next 2 to 3 years' time.

While we still strive for building larger businesses going ahead. I think we have a fairly rounded view I've given on the opening remarks.

To exactly tell you end of March what will it be, I think towards Q2, Q3, depending on how we get the orders going ahead, that will give you better answers.

Understood, sir. Thank you so much.

Hi, sir. My one question is already answered, and congratulations on the great set of numbers.

Sir, my second question is how much cash flow from EBITDA are we expecting to generate in FY '27 and going forward for the next 2 to 3 years, because for the last 2 years, our cash flow generation from operations has been very weak.

No, I didn't understand your question. What is it, guest?

What was that? What did you ask?

Sir, I am asking about the cash flow from operations. Since last 2 years, our cash flow from operations has been very weak.

Over the next 2 to 3 years Cash cash from operating, sir.

Oh, cash flow from operations? Okay.

Yeah.

Yes. Over the next 2 to 3 years, how much conversion from EBITDA are we expecting?

I don't know. Venkat, you want to answer this question?

The cash conversion cycle today is at 365 days. We are seeing improvements year-on-year.

We expect it to probably settle down at 320 to 340 days going forward. Year-on-year, at the beginning of the year, it's very early to calculate all that and come out with an answer for this.

We are definitely focusing on reducing the working capital cycles, and it is also showing some improvements year-on-year. Going by that, we expect it to settle down at 340 to 3 320 to 340 days going forward.

Probably during the middle of the year, we can take a review on this, and some color can be given, but this is too early now.

Sir. Thank you.

Hello. Am I audible?

Hello.

Yes, yes. Awesome.

First question pertains to in our concall, we have said that we might receive the ₹1,100 crore in 1 to 2 months' timeline, while that has been delayed. While I was also reviewing some of the tenders participation and where we can be, I have seen that there is also one order of ₹1,007 crores for Tejas Mk-1A.

Is it possible that it's the same order

What is that? No, no.

What is that order, ₹1,007 crores? What is that?

₹1,007 crore order value for Tejas Mk-1A.

Tejas. Okay.

Is it the same order which you have been considering in the last concall, or it is this different order altogether?

These are not Tejas 1. Tejas 1 is part of some inquiries have come.

We've quoted for whatever our products are going, avionics is going into Tejas. This, hopefully, the order should come during the course of this year.

It normally goes a very large negotiation cycle with HAL. We have to wait and watch when the order is placed.

We've not projected anything in last year for Tejas. We had orders on hand which we executed.

The new order projections is this year only. We're talking about other than that orders-on-hand situation, already delivered products which repeat orders may happen.

For this, we've already quoted, and Tejas also we've already quoted. We have to see when the contract comes.

It'll be only this year.

Sir, I just wanted to clarify. Because the tender was closed on, I think, 13th or 23rd of March, I don't remember the date, and in 65 days of timeline, it needs to be concluded on their side.

There is no update from on the portal or something like that. How should we take that?

No,

I don't know which you're talking about. I am not aware of what you're talking about.

I won't be able to comment on it.

To give you more clarity, actually the orders negotiated of ₹1,000-and-odd crore which was shown in the previous conference call is not a single case, it's multiple cases. Some of them we have got the contract, and that number now stands at ₹1,090 crores.

We have got some more contracts negotiated in between last conference call and now. Put together, ₹1,090 crores as on date as we speak.

Including that, our order book today stands at ₹2,000 crore plus, ₹2,062 crores to be precise.

Right, right, sir. We have to wait for the Tejas order to happen, and we'll announce it to the market as and when the order happens.

Okay. Sir, just want to understand

Sure, sure.

Hi. Am I audible?

Hi. Good morning and congrats for good numbers.

Sir, in your opening remarks, you mentioned about some delays in certain programs. Can I know what kind of programs are these, and secondly, if these delays and these programs are getting deferred to FY '27, then fundamentally, your growth should be more than 25%.

Then why we are sticking to 20% to 25%? That's my first question.

No, what is this 13 programs? I don't know what you're talking.

Which 13 programs?

Not 13, I'm saying you mentioned about some programs getting delayed in execution in Q4 that will be deferred in next year. That's what you said, right?

No, no, no. I never said anything like that.

I never said anything like that. I only compared quarter two to quarter four performances.

Then there are expected orders from whatever we delivered in quarter two, but I never talked about any delays. I only talked about orders which is expected, let's say, another ₹1,900 crores for repeat contracts.

I'm not able to give you timelines on those orders because these are all government contracts, but I expect this to happen over the course of this year is what I said. I never talked about delays on any other thing.

Understood. If I look at the execution in Q4, it is falling behind Q4 last year, right?

We were having the order book in our hand, right? What is stopping us in executing those contracts?

Like what is the reason behind the slow execution?

This is not a poor execution.

Actually, execution has been

actually very good. It's not poor.

It is a good execution, and execution has to be in line with customer requirements. I may have an order on hand, but customer doesn't want delivery today.

There may be preconditions to our delivery. Based on customer request, we deliver, and based on the contract.

Execution has not been poor, actually execution is very good. We delivered things in 2 months and 3 months, which is very, very good.

Our board is very happy with execution, how we manage execution. There is no delay from our side.

It's a question of the agencies, government agencies, getting together, approval, these kind of things normally goes through a process, and that process delay is not addressed by us. We can't address those process delays, but we never had an execution delay from our office.

Understood. Understood.

Secondly, on

Thanks for the opportunity. Sir, my first question is on the largest order that we have received in Q4, IMD radars development and service order.

What would be the execution cycle for that order?

The requirement is between about 18 months. We're trying to see how fast we can deliver it.

Sir, since I can see in the order backlog, services mix has increased significantly. Would that mean trade receivable days would improve or how should we see that?

No, no, you're talking about services?

In the order book, services mix has increased significantly.

No, trade receivables will not increase because we won't bill for services unless the services are carried out. When only product delivery happens, we bill only product development.

The services part of the contract will be billed as and when the services happen and delivery of services happen. There are two independent parts to the order.

We will not bill the overall amount and wait for services to happen over the next 4-5 years. That is not the way revenue recognition is done.

It's not done that way.

Service orders represents our AMC revenue. AMC is actually for multiple years, it's not a single-year AMC.

Sorry, sorry, sir.

There's a process for revenue recognition. This will not add to any receivables increase and all those things.

From the date of billing of a service order, how many days it takes to collect the amount?

Depends. That depends on the customer.

That depends on the customer, yeah.

Depends on the customer and the processes involved. Mm-hmm.

See,

what we do is after the service, again depends on the contract when the billing can start. At the end of the service contract, one year over, the annual billing can be at the end of the year or if it is quarterly billing, quarterly.

It depends on the contract, varies from contract to contract, and the payment cycle terms varies from customer to customer.

In general, if you were to generalize, is it better than production orders or

I can't generalize because they're all uniquely government agencies are there. IMD is a first case which is taken up now.

Until we get some money transferred from IMD, we won't be able to generalize.

Okay. Thank you for answering my questions.

Thank you. Thank you.

Hello. Hi.

Thank you for the opportunity, sir, and congratulations on a great set of numbers. I have two specific questions.

One related to our current order book. We have about 38% of our current order book coming from services, which has roughly an elongated execution cycle.

Even in our negotiated order book of ₹1,090 crore, even within that also, we have a sizable amount coming from services. Does that put a pressure for us in terms of our growth side?

Would our growth, when we say 25% growth, would that be a pressure point for us for the coming year as well as for next year, FY '28?

Okay. This question has already been asked and answered.

₹1,090 crores, I gave him an approximately about ₹100 crores would be services, rest is product delivery. It will not affect the our top-line revenue growth as what we projected.

We projected 20% to 25%. We believe we should be able to do this.

On top of why we said we should we do this also that there are a number of repeat contracts we're expecting during the course of the year. If it happens early, then we can deliver those products earlier, so that also will bring in additional revenue or either the part of the revenue projections or over and above the revenue projections, we can do that.

It depends how the order inflow happens during the course of this year. Right.

Basically, what you are saying is that the quick-execution order book, like we had in the current year, is what we are largely depending on for to achieve the ballpark number that you are guiding for the current year. Is that a fair way to

put it? We believe it'll be substantially higher than the guidance number is what we expect because I think there are a lot of long-term initiatives the company has taken.

I think those initiatives, one by one, will start fructifying into contracts. Once it starts getting in contracts, our order book situation should grow substantively in the coming years is what we expect.

We have developed products and over a period of time to ensure that we can scale the company very quickly into multi-thousand-crore company rather than scale it 20% year-on-year. That is not what we're looking at in the management cycle here.

We're actually looking at some very high scalability in the coming years. The strategy and product development mix is working towards how to build a scalability and sustainable scalability is what we're working on.

Got it. Got it.

Sir, my second question

Thank you for the opportunity. I just wanted to ask, apart from BrahMos missile, which other missile programs are we delivering

I can't hear you at all. Can you come to nearer the phone and call?

Now audible?

Yeah.

Apart from BrahMos missile, which other missile programs are we delivering

Am I audible now?

Yes.

Apart from BrahMos missile, which other missile programs are we delivering seekers and IR products for, and for which products are we L1 vendors?

Other than the BrahMos product, there's one other program for the air defense we've done a seeker. That is under delivery mode now.

There are no other programs on the missile area where we're working on seekers. As a concept, we want to take up initiatives to build other kinds of seekers, electro-optics, et cetera, seekers on our own.

Where we're positioning ourselves with an industry partner to see that we can get the revenue model as we go along. Those are all development initiatives internal to office.

As of now, we don't have anything else, because we work on whatever DRDO allows us to do. We develop the products as per their requirement.

Till then, now it's been controlled by DRDO on the missile program itself. As and when the missile program becomes opened up, and large corporates start coming into the business, then maybe we should be able to do a large part of the design and have a ecosystem which will develop the system.

That's yet to happen.

Okay. Sir, the second thing is

Good morning, sir. Am I audible?

Yeah. Thanks for the opportunity.

My question is on the AMCA program. Any update on our consortium's position for the AMCA program, and irrespective of the outcome of which consortium is winning, what would be our opportunity within the AMCA program?

The AMCA program RFP is expected anytime now. That is the first status.

Second is on the AMCA, we have the glass cockpit is developed by us. The mission systems is developed by us for the LCA Mk-2, which is going to be taken to AMCA.

We're hoping that as we go along, more such on the sensors and RWR and radar and things like that as and when we're able to develop products and it is acceptable to customer, more such programs will follow. As the present moment, we have only the cockpit solutions and mission management system is being done by us.

Hi, sir. Am I audible?

Yes.

Sir. I just wanted to know, out of the negotiated order of ₹1,000 crores, you did say that if the delivery schedule is okay, we might deliver some of those contracts this year.

Would that growth be over and above the guidance of 20% to 25% you're guiding for?

No, I never mentioned. I think you misheard me, misunderstood the whole thing which I answered.

I never said the ₹1,000 crores. We only talked about orders on hand, the expected orders, that is negotiated is this ₹1,000 crores.

I never said that this will be delivered earlier and things like that. I've talked about other ₹1,900 crores if it were to come.

Single-tender businesses are to happen during the course of the year, comes in early, then I can execute them early. That is what I talked about, not on the contracts on hand.

I didn't understand the second part of your question. What was the second part of the question?

No, I'm

just asking that if that ₹1,000 crore if the delivery schedule is allowing you to get the revenue today, would that be over and above the guidance you're suggesting for? Because is there any capacity constraint is my question as well.

No, we are building large capacities. For expected contracts, already capacity we have built.

Plus, we're building something about nine floors of factory space to build in additional capacity to see that as the program size has increased and the volume of contracts increase to scale to a multi-thousand-crore company, we have already started investing on capex and infrastructure expansion because it takes 1 to 2 years' time. We're already in the process of doing it.

For seekers and other things, we already put the requisite building blocks and infrastructure necessary to ramp up production. Already we've done that.

I don't think we will have a problem in execution. As and when it happens, we are aware of when this will happen.

Of course, the timelines are not very predictable. We have to take a cautious view of not overspending on infrastructure, and if the contracts don't happen, I don't want to sit on capex infrastructure there.

This has to be judiciously implemented. We are aware that scaling is going to happen substantially, and we're taking aggressive position on terms of capex, infrastructure to address the scaling requirements as we go along.

Sir. Understood.

Thank you.

Hi, sir. Thank you for the follow-up opportunity.

Sir, I wanted to understand on your product development and also on the Virupaksha component for the Virupaksha radar that you had supplied to Indian Air Force as well. Any update on that as to what is the progress, how was the response, and if there's any concrete order which we can expect from there?

You also mentioned about the new areas of development around anti-drone systems, drone detection. Can you tell us more about the timeline as to when these products will start getting commissioned or other in that approval stages, and we can expect some revenue from them?

First is, Virupaksha is not our product. Virupaksha is a DRDO project name for the Su-30 radars.

This is not ours. We call it by different names.

We have not delivered Virupaksha or any thing equivalent to Air Force as yet. That is a wrong information you have received.

We have our own versions of it, and we believe that that will also be taken up by Air Force in the coming years. Because of the uncertainty and timelines which I can't predict, we've not given revenue expectations out of those things and in our opening remarks.

Similarly, when we talk about anti-drone, yes, products are getting done. We will be participating in demonstrating the products to army and air force and whatever.

That will happen. Again, we don't have clear timelines when what will happen.

We've started quoting in some locations, and if we are successful, the quotes, we may get the order. These are all things which is, again, a quote and competition basis.

Timelines and revenue model is not very clear now. Then we need to expand the product portfolio and be aware of what is happening and the need of the customer is trying to address the need in overall.

We're developing a number of products, and these are all repurposed products. Already we have done something with incremental effort of 3-4 months.

I can position the products, it makes sense to do that, and our product will be reliable and meeting the specifications. Based on that, we believe there are low-hanging fruits, but timelines are not predictable, we will not predict timelines and revenue models out of that.

On new product development, we don't do revenue projections unless the clarity is there from the market and it is in acceptance stage, and later inquiries started coming in. I can't give you projections.

I'm only talking about overall business environment and product development to help to the investors to understand how scalability we're going to ensure that we can be a larger business going ahead in the next 2 to 3 years' time. That is how the overall business perspective and product development has been explained, not with the exact revenue model because I can't give you numbers like that.

I'm also looking for the timeline on the new product development as to when we can expect the new products to start coming into your product portfolio, per se.

That will all happen as it's happening already, but that depends on the product. Anti-drone is a smaller system, it can happen quickly.

The other EW suite for self-jammer is a 2-year, 2.5-year initiative which we've taken up, and in the next 1 year, it will come to conclusion. Depends on the product and the complexity of the project and program, and the acceptance models.

Air trials have to be done. It takes longer time.

It takes 1.5 to 2 years' time to do air trials. Why I give you the overall perspective is that we are not only looking at contracts now, we're also looking at short term, some kind of product development initiatives and repeat contracts.

Slightly medium term, we've already invested and continue to invest in new products and orders, which is actually needed by the country, which no Indian company is positioning. Only foreigners are positioning products there.

In competition to products, our products should be far more economically priced, and support systems are going to be fast for period as long as the product meets world-class specifications. Based on that, we believe there are low-hanging fruits, but timelines are not predictable, we will not predict timelines and revenue models out of that.

Got it, sir. Thank you for answering my question and all the best.

Thank you.

Hi, sir. Congratulations on your set of numbers.

My doubt is regarding our competitor's peer, which is Astra Microwave. I've been following the defense companies as such.

In this case, Astra Microwave is also in line with providing more on complete system similar to us. They have been transitioning in that aspect.

How are we trying to position ourselves in case of the competitive front when compared to one such peer like let's say Astra Microwave, in case of systems and orders which we are going through?

I won't like to comment on specific competition in open line, I will refrain from answering this question.

That's all questions from my side, sir. If possible, could you just explain more on our technological side in case of our product development, which is part of our R&D, details more on the technical part of it?

We have a strong in-house technology development team. There are nearly about 1,200 engineers working with us.

As what we've done all through the years, we develop products and write off this revenue expenses except in few cases where we've taken a TDF fund for product development, which is capitalized. We don't do capitalizing.

We continue to do enormous amount of product development as part of our yearly requirements. Then have the product ready for markets which we perceive or we believe is going to open up to us.

We take shortcut initiatives and upfront invest in products. We're investing now products on radars, earlier, only the hardware was being done by us because DRDO software is done by them.

Now the market is opened up, we decided that we build a software and full radars. We've done a few radars, and some of them have been exported.

Now we're building the drone detection radars. We want to get into the airborne radar programs, we are doing the airborne development programs for airborne radars, including software, as complete radars.

We were doing the IFF, we want to do the mission systems, we want to do the EW. Already it's flying, we want to enhance the scale of EW.

The communication intelligence, we want to do world-class systems with increasing specifications to see that it is the top-of-the-line world-class specifications are met. Like that, in every product area, we're trying to improve the product capability and address it with the world markets, and see that we are in line with the world systems so that we can offer best solutions for India and not second to none is what we're trying to do.

Our area of focus is if you take avionics, radio, mission systems, communications, radars, EW, IFF, a lot of other things which goes into UAV platforms, and parts of the radar as per DRDO requirements, complete radar solutions wherever we can do that, export of these parts of systems to international OEMs. All of this is what we're looking at.

We have fairly deep technological capabilities in all of them, and we have a very strong group of people who have been with this company for 20-25 years who will drive this technology, and also the middle management on the engineering, who are all 15-20 years in the company. It's a very homegrown kind of an organization where there are no levels, and product talks, and all of us listen.

The idea is to develop products which is world-class with the market opening up, and we want to build a large-scale company going ahead.

Thank you, sir.

Thank you all for joining in on this conference call, earnings call for Q4 and the year 2025-26. I've taken time to give you an overall perspective of how our business is going and where we are trying to develop products.

The intent is to see that we scale up multiple times in the coming years. The market opportunities are very, very large, considering that India has been importing all our defense systems, and these are core competency and IP-driven products.

We have been completely dependent on foreign OEMs who don't share the details, and do a manufacturing only in India. As against that, we want to build our own capability and full products to see that we are completely self-reliant and with world-class products.

Some of our initiatives have started giving some results, and some orders are going to come on the EW, which competing with Germany, we're going to get some contracts. Tenders have been opened and negotiations completed.

Things like that. Similarly, on the EW jamming, we have done all this, including the software, the mechanical systems, the cooling systems, the electronics, which is world-class.

We believe that also should give us some substantive revenue opportunities going ahead. The third area is whatever we already developed, and we've taken some additional risks in addressing these opportunities because we believe it will help us build scale, repeat orders, as well as build program management capabilities in the company.

We take them and successfully executed the contracts, customers quite happy. We believe that there will be some additional requirements which will come up, which will build scale into the company.

Fourthly is we are looking at exports. Till now, that has not been a focus area.

With the geopolitical environment, the export then now takes a precedence, because a lot of European companies are looking at how quickly can we deliver products for their military programs. We're trying to address it.

Similarly, in US programs, and we need to now have a team to go and address in Japan, to Korea, to Europe, to UK, to other countries, including US, so that we are trying to put a team together to see how to address this. We are also looking at how do we scale capabilities in terms of electro-optics.

What is it we need to do to build in electro-optics, not just electronics company, and a domain. Domain and electronics, mechanical, all be integrated together to build our own systems.

I give you an overall idea. We are very bullish, like I said, on the growth opportunities of what India offers today.

Since we've been importing everything, it now, there is up to us for grabs. Obviously, there are time lapses, and it's government agencies, we need to be aware of that and not do overinvestment and then have competition foreigners who come on the back route and put them infrastructure, then we lose the business.

We are cautious of the development and what we're putting money in. Overall, I think we are taking the right approach and direction.

The board and the technology board in the company are quite clear that we're going in the right track. We will continue to build like this, and scale the company quite quickly.

This is what we expect. We're very bullish on Data Patterns' growth going ahead.

Thank you very much for your listening patiently for this. If you have any further questions, please pass it on to Go India Advisors, and we will get them answered to you through them.

Thank you, all. Thanks for listening in.