GRSE Versus Data Patterns: Growth, Margins and Valuations Compared

GRSE and Data Patterns are two Indian defence companies, but they make different things.

GRSE builds and repairs warships for the Indian Navy and Coast Guard.

Data Patterns makes electronic systems used in aircraft, ships, space equipment and other defence platforms.

GRSE grew its sales faster from FY22 to FY26.

Data Patterns earned much more profit from each rupee of sales because its margins were higher.

GRSE’s returns on capital and shareholders’ money improved strongly by FY26.

Both companies had very little debt, but their cash flows changed significantly from year to year.

GRSE also had a much larger order book, while Data Patterns traded at more expensive valuation multiples.

Future results will depend on executing orders, developing products, expanding capacity and collecting cash.