Explained - The key factors behind the 17% jump in Data Patterns in two sessions

Shares of Data Patterns (India) Ltd. extended gains for a second straight session on Wednesday, July 22, rising nearly 10% and taking their two-day advance to about 17%, after the defence electronics company emerged as the lowest bidder for a ₹1,300 crore project from Hindustan Aeronautics Ltd. (HAL).

According to the Government e-Marketplace (GeM) portal, Data Patterns has received the Award of Contract (AOC) for the supply of electronic warfare equipment, including Buffer Amplifier and Built-In Test Equipment Modules, for HAL. The order is valued at around ₹1,300 crore.

The development comes at a time when the company's order book stood at ₹926 crore at the end of FY26.

During its March-quarter earnings call, management had said negotiations had been completed for orders worth around ₹1,090 crore, which were expected to be received within one to two months. The company had also guided for an additional ₹1,500-2,000 crore of order inflows during FY27.

Following its FY26 results, Data Patterns had guided for an order pipeline of ₹2,000-4,000 crore over the next 24 months. The company expects to deliver 20-25% revenue growth over the next two to three years, while maintaining EBITDA margins of 35-40% in FY27 and remaining net debt-free.

Why Is JM Financial Bullish?

JM Financial maintained its 'Add' rating on the stock with a target price of ₹4,080.

The brokerage said the HAL order, which is scheduled to be executed within 180 days of the award, is highly significant as it exceeds Data Patterns' entire FY26 order inflows of ₹1,100 crore and is also larger than the company's year-end order book of ₹926 crore.

JM Financial added that while the stock is trading at 54 times its estimated earnings for FY28, the order has the potential to drive earnings upgrades once it is formally materialised.

Shares of Data Patterns are trading 11.6% higher on Wednesday at ₹4,734.6. The stock has risen 82% so far in 2026 and is trading close to ₹4,955.9.