Data Patterns Acquires ST Advanced Composites in Strategic Move for Vertical Integration
Data Patterns (India) Limited has approved the acquisition of 100% stake in ST Advanced Composites Pvt. Ltd., a Chennai-based advanced composite engineering firm. The deal aims to achieve vertical integration within the defense and aerospace sectors, enabling Data Patterns to offer integrated subsystem solutions to high-profile clients.The acquisition target, ST Advanced Composites (STAC), has an authorized share capital of Rs. 50,00,000, divided into 5,00,000 Equity Shares of Rs. 10/- each. As per the Provisional Financial Statement as on March 31, 2026, STAC recorded a turnover of Rs.416.85 lakhs.
Data Patterns will gain full ownership after completing the transaction, which is slated for completion within three months. The acquisition involves a cash consideration structure consisting of payments to the Promoters and a loan provided to the Target Company. Key financial details regarding the deal are summarized below:
| Particulars | Details |
|---|---|
| Stake Acquired | 100% |
| Total Consideration (Cost of Acquisition) | Rs.1.50 Cr. (to Promoters) |
| Loan to Target Company | Rs.8.50 Cr. |
| Target Industry | Advanced Composite Engineering |
Boosting Integrated Subsystem Capability
The decision by Data Patterns to acquire STAC is centered on strategic vertical integration within the defense technology supply chain. Currently, while Data Patterns designs and manufactures radar electronics, it procures necessary radomes and composite structures from third-party vendors. This outsourced dependency leads to margin leakage and limits the scope when bidding for integrated subsystem programmes.By acquiring ST Advanced Composites, Data Patterns brings this essential capability in-house. STAC is a specialized company focusing on RF transparent radomes, aerospace-grade structural components, and defense composite solutions. Its end-to-end capabilities span design, tooling, fabrication, assembly, and testing, concentrating on the aerospace, defense, UAVs, and RF structures markets.
The successful integration of these two entities will significantly expand Data Patterns' market positioning. Currently, DRDO, international radar OEMs, and missile programme customers increasingly require a single vendor capable of supplying both electronics and associated RF structures. Post-acquisition, Data Patterns is positioned to meet this demand, potentially expanding the addressable value per programme by an estimated 1.3x to 2.0x.
STAC’s performance over its last three years includes:
| Fiscal Year | Turnover (Lakhs) | Status |
|---|---|---|
| FY 23-24 | 157.66 | Audited |
| FY 24-25 | 442.19 | Audited |
| FY 25-26 | 416.85 | Provisional |
DATAPATTNS Stock Price Movement
On Thursday, shares of Data Patterns (India) Limited edged higher to close at ₹4462, gaining 0.34% from the previous closing price. The stock concluded trading with a volume of 502,693 shares recorded.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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