Shares of Data Patterns Ltd. surged as much as 9% on Thursday, November 14, after the defence electronics company reported strong September quarter results.

The company's revenue jumped 3.4 times year-on-year to ₹307 crore from ₹91 crore, outpacing estimates of 37% growth.

EBITDA doubled to ₹68 crore, while net profit rose 62% year-on-year, also beating expectations of 22% growth.

However, margins took a sharp hit, falling more than 1,500 basis points year-on-year to 22%, impacted by a steep rise in material costs. Material expenses surged to 61% of revenue, compared with 24% a year ago.

Gross margin fell to 38% from 76% due to the delivery of a low-margin project worth ₹180 crore during the quarter. The company, however, expressed confidence in returning to its historical margin level

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