Defence stocks under pressure as Data Patterns, DCX Systems, Solar Industries react to Q1 results; HAL, Garden Reach earnings today

Defence sector stocks were in the spotlight on Friday, August 8, with mixed reactions to quarterly earnings and anticipation of more results later in the day. Hindustan Aeronautics Ltd (HAL), Garden Reach Shipbuilders Ltd, Solar Industries Ltd, Data Patterns Ltd, and DCX Systems Ltd were among the key counters being tracked.

Data Patterns slides after revenue miss

Shares of Data Patterns opened sharply lower, falling as much as 7 per cent after the company posted a 5 per cent year-on-year decline in revenue against analyst expectations of up to 22 per cent growth. The drop was attributed to delays in customer approvals, which management expects to normalise in the coming quarters.
EBITDA fell 14 per cent year-on-year, with margins contracting by 340 basis points to 32.33 per cent. The order book grew 11.5 per cent to Rs 814 crore.

DCX Systems down despite strong topline growth

DCX Systems reported a 61 per cent jump in revenue and 38 per cent rise in net profit in Q1 FY26. However, EBIT margins fell 200 basis points to 4.87 per cent due to R&D losses of nearly Rs 11 crore from a subsidiary. The order book stood at Rs 2,697 crore. The stock traded 1.5 per cent lower in early trade.

Solar Industries pares gains post results

Solar Industries saw revenue rise 28 per cent and EBITDA grow 19 per cent in Q1, though margins narrowed by 200 basis points to 24.83 per cent. The order book stood at Rs 16,800 crore, with management maintaining a positive defence business outlook. Shares slipped 1.4 per cent after opening higher.

HAL, Garden Reach earnings awaited

HAL and Garden Reach shares were little changed ahead of their Q1 announcements later in the day. Both have declined between 9-10 per cent over the last month.