Onward Technologies Limited (ONWARDTEC)
₹427.40 +19.99% last close, 16 Oct
Q2 FY27 results
Onward Technologies Limited reported Q2 FY27 results on 16 Oct 2026: revenue ₹170 Cr (+22.5% year on year, +14.2% on the previous quarter), and net profit ₹16.8 Cr (+40.5% year on year); the operating margin was 15.6%.
| Q2 FY27 (₹ Cr) | Value | YoY vs Q2 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹170 | +22.5% | +14.2% |
| Operating profit | ₹26.5 | +33.5% | +47.4% |
| Net profit | ₹16.8 | +40.5% | +52.5% |
| EPS (₹) | 7.65 | +45.4% | +52.4% |
| Operating margin | 15.6% | — | — |
- Profit -23% below its own trend
- Operating margin expanded 129 bps YoY
Quality of profit: of pre-tax profit of ₹22.1 Cr, ₹21.1 Cr (95%) came from the core business and the rest from other income and one-off items. Core profit (operating profit less interest and depreciation) moved +43.4% year on year.
Against its own trend: net profit of ₹16.8 Cr was -23.2% against the ₹21.9 Cr its recent growth pointed to (below trend). This is a statistical baseline, not an analyst estimate.
Share price since the results: +20.0% (close before the filing to the latest close).
ONWARDTEC delivery percentage and bulk deals
NSE end-of-day data for
On Fri, 16 Oct 2026, 31.19% of the ONWARDTEC shares traded on NSE were taken to delivery, against the stock's own 20-session average of 57.96%. The price rose 19.99% on unusually low delivery, so more of the move than usual was intraday trading. It traded 30.7 times its average daily volume. It closed at its upper price band (circuit) on 16 Oct. 3 bulk or block deals were reported in ONWARDTEC in the last 60 days: ₹12 Cr bought and ₹8 Cr sold.
Delivery in the last 5 sessions: 50.8% · 45.8% · 30.1% · 47.5% · 31.2%
| Date | Side | Counterparty | Value | Price | Quantity | Type |
|---|---|---|---|---|---|---|
| 16 Oct | Buy | Amit Ashok Thawani | ₹8.55 Cr | ₹427.40 | 200,000 | Bulk |
| 16 Oct | Sell | Arham Share Private Limited | ₹7.55 Cr | ₹426.23 | 177,180 | Bulk |
| 16 Oct | Buy | Arham Share Private Limited | ₹2.99 Cr | ₹427.05 | 70,024 | Bulk |
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Onward Technologies reported its strongest-ever quarter in Q2 FY27, with total revenue rising 22.2% YoY to ₹171.2 crore and PAT surging 41.2% YoY to ₹16.8 crore. EBITDA margins expanded by 130 bps YoY to 15.6%, driven by higher utilization and offshore execution. Supported by strong H1 execution, management raised its FY27 revenue growth guidance to 15–18% and EBITDA margin outlook to 13.8–14.3%. The company also reported a multi-year contract renewal worth ₹44.46 crore (~7.9% of TTM revenue) and net cash of ₹97.1 crore.
- Total revenue grew 22.2% YoY and 13.2% QoQ to ₹171.2 crore in Q2 FY27
- EBITDA increased 33.7% YoY to ₹26.6 crore, with EBITDA margin improving 130 bps YoY to 15.6%
- PAT rose 41.2% YoY to ₹16.8 crore with diluted EPS expanding 45.5% YoY to ₹7.61
- Management raised FY27 revenue growth outlook to 15%-18% and EBITDA margin to 13.8%-14.3%
- Secured a multi-year contract renewal valued at ₹44.46 crore; net cash stood at ₹97.1 crore
Onward Technologies reported a strong Q2FY27 with total revenue reaching ₹171.2 cr, up 22.2% YoY and 13.2% QoQ. Operating performance improved significantly as EBITDA grew 33.7% YoY to ₹26.6 cr with margins expanding 130 bps to 15.6%. Net profit rose 41.2% YoY to ₹16.8 cr, supported by revenue growth and operating leverage. The company also renewed a ₹44.5 cr managed digital services contract over three years, up 72% over its prior term, while net cash reached ₹97.1 cr.
- Q2FY27 Total Revenue grew 22.2% YoY to ₹171.2 cr, with PAT up 41.2% YoY to ₹16.8 cr
- EBITDA increased 33.7% YoY to ₹26.6 cr; EBITDA margin expanded 130 bps YoY to 15.6%
- Renewed a 3-year managed digital services contract valued at ₹44.5 cr (up 72% over previous term)
- H1FY27 net cash stood at ₹97.1 cr with net debt at approximately ₹0
- Net headcount addition of 432 employees in H1FY27 brought total global workforce to 2,917
Onward Technologies reported a strong Q2 FY27 performance, with consolidated revenue from operations increasing 22.5% YoY to ₹170.18 crore compared to ₹138.97 crore in Q2 FY26. Consolidated net profit grew 40.5% YoY to ₹16.77 crore from ₹11.94 crore in the year-ago period, driven by operational expansion in North America (up 38% YoY to ₹62.15 crore). Basic EPS rose to ₹7.65 per share from ₹5.26 in Q2 FY26. Sequentially, revenue expanded 13.9% QoQ and net profit improved 50.2% QoQ, marking a healthy acceleration.
- Consolidated revenue from operations grew 22.5% YoY to ₹170.18 crore (₹17,017.71 lakhs)
- Consolidated PAT increased 40.5% YoY to ₹16.77 crore (₹1,677.41 lakhs)
- North America revenue climbed 38.0% YoY to ₹62.15 crore (₹6,215.16 lakhs)
- H1 FY27 consolidated net profit reached ₹27.94 crore versus ₹24.67 crore in H1 FY26
- Basic EPS for the quarter improved to ₹7.65 compared to ₹5.26 in Q2 FY25
Onward Technologies Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate covers the quarter ended September 30, 2026, and was issued by its RTA, MUFG Intime India Pvt. Ltd. (formerly Link Intime India Pvt. Ltd.). The document confirms that securities received for dematerialisation during the period were duly verified, accepted or rejected, and that certificates were mutilated and cancelled within prescribed timelines. This is a standard quarterly administrative filing with no financial impact.
- Regulation 74(5) compliance certificate submitted for the quarter ended September 30, 2026
- Confirmation issued by RTA MUFG Intime India Private Limited on October 03, 2026
- Submission made to BSE (517536) and NSE (ONWARDTEC) on October 07, 2026
- Securities received for dematerialisation were confirmed and processed within prescribed statutory timelines
Onward Technologies' Board has approved an investment of up to ₹13.10 crore in its wholly-owned subsidiary, OT Park Private Limited, via a rights issue. The investment will be made by subscribing to up to 1,05,000 1% Optionally Convertible Redeemable Preference Shares (OCRPS) at ₹1,248 per share. OT Park, which manages infrastructure and workplace facilities, reported an audited turnover of ₹237.98 lakhs. The capital injection represents ~6.15% of Onward's net worth (₹213 crore) and aims to support long-term workplace infrastructure and facility consolidation.
- Approved subscription of up to 1,05,000 OCRPS at ₹1,248 each, aggregating up to ₹13,10,40,000
- Target entity OT Park Private Limited is a 100% wholly-owned subsidiary with an audited turnover of ₹237.98 Lakhs
- OCRPS carries a 1% coupon rate with a face value of ₹10 per share
- Proceeds designated for long-term operating infrastructure, workplace facilities, and consolidation
Onward Technologies has secured a 3-year Managed Digital Services contract renewal valued at ₹44.46 crore, running from August 2026 to August 2029. The renewed contract represents a 72% expansion in value compared to the previous contract, reflecting expanded project scope for a global construction and mining equipment manufacturer. The total order value corresponds to ~8.5% of the company's TTM revenue of ₹523 crore (or ~₹14.8 crore annually, ~2.8% of TTM revenue). Execution is 100% offshore-based delivery from India delivery centers under an outcome-based commercial construct.
- Renewed 3-year contract aggregate value of ₹44.46 crore running from August 2026 to August 2029
- Contract value represents a 72% increase compared to the previous contract scope
- Scope entails 100% offshore delivery from India Delivery Centers for an e-commerce aftermarket platform
- Annualized value of ~₹14.82 crore represents ~2.8% of TTM revenue (₹523 crore)
Onward Technologies promoter group entity JHM Enterprises Private Limited has acquired 25,000 equity shares via open market purchases. This transaction represents 0.11% of the company's total paid-up share capital. At the current share price of approximately Rs 278.8, the transaction value is roughly Rs 0.70 crore. The acquisition causes no change in management control and aligns with SEBI regulations.
- Promoter group entity JHM Enterprises acquired 25,000 equity shares
- Acquisition represents 0.11% of total paid-up share capital
- Purchases were executed via the open market
- Filing confirms no change in company control
Onward Technologies Limited has announced an in-person group interaction with Institutional Investors scheduled for September 7, 2026, from 4:00 pm to 6:00 pm IST in Pune. The company clarified that discussions will focus on general business outlook based on publicly available information, with no unpublished price-sensitive information (UPSI) shared. This is a standard corporate governance disclosure pursuant to Regulation 30 of SEBI LODR Regulations.
- Institutional investor group meeting scheduled for September 7, 2026
- Meeting time fixed from 4:00 pm to 6:00 pm IST
- Physical group meeting to be held at Pune
- Discussions restricted to public domain info with no UPSI to be shared
Onward Technologies Limited has allotted 6,500 equity shares of face value ₹10 each pursuant to the exercise of options under its Employee Stock Option Scheme 2019. The shares were issued at an exercise price of ₹20 per share (including a premium of ₹10 per share). Following this allotment, the total issued equity shares of the company increased marginally to 2,22,49,390 shares, representing a paid-up capital of ₹22.25 crore. The equity dilution is minimal at less than 0.03% of the total share capital.
- Allotment of 6,500 equity shares of face value ₹10 each under ESOP 2019
- Issued at an exercise price of ₹20 per share (including a ₹10 premium)
- Post-allotment total issued share count expands to 2,22,49,390 equity shares
- Total issued share capital stands increased to ₹22,24,93,900
Mrs. Prachi Mehta, a promoter of Onward Technologies Limited, has acquired 30,127 equity shares of the company from the open market. The acquired shares represent approximately 0.13% of the company's total paid-up share capital. At current market prices (~Rs 284.2 per share), the purchase represents an investment of roughly Rs 0.86 crore. The company confirmed that this acquisition results in no change in control and is compliant with applicable SEBI regulations.
- Acquisition of 30,127 equity shares from the open market by promoter Mrs. Prachi Mehta.
- Acquired shares account for 0.13% of the total paid-up equity share capital.
- Estimated transaction value stands at approximately Rs 0.86 crore against a market cap of Rs 641 crore.
- The acquisition does not cause any change in control of the company.
Onward Technologies Limited has received a penalty order of ₹10,59,664 from the Income Tax Department under Section 270A of the Income-tax Act, 1961. The penalty relates to the disallowance of expenses and tax relief claims for FY 2019-20, which the company attributes to retrospective changes in taxation law and interpretation. The financial impact is negligible, representing approximately 0.11% of the company's latest quarterly net profit (Jun 2026). The company has stated it has the option to file an appeal against this order.
- Penalty of ₹10,59,664 imposed by the Income Tax Department.
- Order pertains to the re-assessment of declared income for FY 2019-20.
- Penalty triggered by retrospective changes in taxation law and interpretation of expenses.
- Order received by the company on July 31, 2026, and disclosed on August 14, 2026.
- Company intends to seek recourse by filing an appeal against the said order.
Onward Technologies reported its highest-ever quarterly revenue of Rs 151.2 crore in Q1 FY27, marking an 8.7% sequential growth and crossing the Rs 150 crore milestone. EBITDA margins improved by 113 bps to 12.3%, supported by a new Rs 33 crore contract win from a North American power management firm. The company expanded its strategic client base, with $1 million+ accounts increasing from 16 to 18. Management indicated that the current order book (ACV) has already surpassed the total revenue of the previous financial year, providing strong growth visibility.
- Achieved record quarterly revenue of Rs 151.2 crore, up 11.5% YoY and 8.7% QoQ.
- Secured a new Rs 33 crore contract with a global power management company, representing approximately 6% of TTM revenue.
- EBITDA grew 20% sequentially to Rs 18.4 crore, with margins expanding to 12.3%.
- Increased the count of $1 million+ annual revenue customers from 16 to 18 during the quarter.
- Management confirmed the current Annual Contract Value (ACV) has already exceeded the total revenue of the previous fiscal year.
Onward Technologies has informed the exchanges that the audio recording of its conference call held on July 16, 2026, is now available on its website. The call followed the announcement of financial results for the quarter ended June 30, 2026. This is a standard regulatory filing under SEBI LODR Regulations to ensure transparency for all shareholders. Investors can use this recording to gauge management's progress toward their stated 15% revenue growth target for FY2027.
- Conference call conducted on July 16, 2026, following Q1 results
- Recording pertains to the financial performance for the quarter ended June 30, 2026
- Company currently operates with a TTM revenue of ₹544 Cr
- Market capitalization stands at ₹653 Cr as of the announcement date
Onward Technologies Limited has successfully concluded its 35th Annual General Meeting (AGM) held on July 16, 2026, with all seven resolutions passed with significant majorities. Shareholders approved the audited financial statements for FY26 and the declaration of a final dividend. Key leadership continuities were secured, including the re-appointment of Harish Mehta as Executive Chairman and Hear Mehta as Managing Director, both receiving over 99.8% of votes in favor. Independent Director Dhanpal Jhaveri was also re-appointed for a second three-year term with 97.57% approval.
- 99.99% of votes were cast in favor of adopting the audited financial statements for the year ended March 31, 2026.
- 99.99% approval received for the declaration of the final dividend for the financial year 2025-26.
- 99.87% shareholder support for the re-appointment of Harish Mehta as Executive Chairman and Hear Mehta as Managing Director.
- 97.57% approval for the re-appointment of Dhanpal Jhaveri as an Independent Director for a second term of 3 years.
- A total of 91 members participated in the voting process, representing 1,38,51,199 valid votes.
Onward Technologies Limited has announced the cessation of Mr. Jay Sonawala as a Non-Executive Independent Director, effective July 20, 2026. This change is a routine retirement resulting from the completion of his prescribed tenure. The company, which has a market capitalization of Rs 653 Cr and TTM revenue of Rs 544 Cr, has not yet announced a replacement. This transition is procedural and aligns with standard corporate governance practices regarding director rotation.
- Cessation of Independent Director effective July 20, 2026
- Retirement is due to the completion of the director's tenure
- Company reported TTM PAT of Rs 44 Cr and TTM revenue of Rs 544 Cr
Financial Performance
Revenue Growth by Segment
The Industrial Equipment & Heavy Machinery (IEHM) vertical contributes 57% of overall revenues, while the Transportation & Mobility (T&M) vertical accounts for 38%. The newly established Healthcare & Life Sciences (HCLS) vertical generated 4% of revenue in the last fiscal year. The company is targeting to scale HCLS by converting 1-3 clients to the $1 million+ annual revenue bracket within three years.
Geographic Revenue Split
The company operates across North America, Europe (UK, Germany, Netherlands), and India. While specific percentage splits per region are not disclosed, the company is expanding its international workforce to 500 employees to support growth in North American and European markets.
Profitability Margins
Profitability has seen recent compression; the Operating Profit Margin declined to 9.1% in FY 2024-25 from 11.1% in FY 2023-24 (a 17.7% variance). The Net Profit Ratio also fell to 5.5% from 7.2% (a 23.24% decrease) due to increased operating costs associated with growth investments and talent acquisition.
EBITDA Margin
The company reported an OPBDIT/OI margin of 4.1% in FY2023, down from 8.4% in FY2022. Management has committed to achieving double-digit EBITDA growth in FY2025 and FY2026, with a long-term target of reaching 15% EBITDA margins by FY2027 as utilization of new hires improves.
Capital Expenditure
The company's growth is supported by a significant fund infusion of INR 70 crore from Convergent Finance LLP. These funds are being utilized to bolster international teams and enhance digital capabilities in AI, Cloud, and Data Centers.
Credit Rating & Borrowing
ICRA reaffirmed ratings at [ICRA]BBB(Stable)/[ICRA]A3+. The company maintains a debt-free position with a comfortable liquidity profile. Interest coverage ratio stood at 10.4x in FY2023, though it declined to 1.3x in FY2024-25 on a consolidated basis due to lower net profits.
Operational Drivers
Raw Materials
As a service-based ER&D firm, the primary 'raw material' is human capital. Employee benefit expenses represent the largest cost component, supporting a workforce of 2,581 employees as of March 31, 2025.
Import Sources
Not applicable for software services; however, talent is sourced primarily from India (offshore capability centers) and local markets in the US, UK, and Germany.
Key Suppliers
Not disclosed as the company provides intangible engineering and digital services rather than manufacturing products.
Capacity Expansion
Current capacity is distributed across 14 offices in 6 countries. Expansion plans include growing the international team to 500 employees in North America and Europe to handle increased offshore and onsite project demand.
Raw Material Costs
Employee costs are the primary driver. Increased operating costs led to a 29.5% drop in Return on Equity (to 12.55%) and a 23.21% drop in ROCE (to 17.3%) in FY 2024-25, reflecting the high cost of specialized engineering talent.
Manufacturing Efficiency
Efficiency is measured by employee utilization. Margin recovery is expected as recently hired employees are fully deployed on high-margin service offerings.
Logistics & Distribution
Not applicable; services are delivered digitally or via onsite consulting.
Strategic Growth
Expected Growth Rate
15%
Growth Strategy
The company plans to achieve 15% revenue growth by FY2027 through a '100% customer focus' strategy, scaling the HCLS vertical, and investing in AI and Data Center capabilities. They are also expanding their international presence to 500 employees to capture higher-value onsite R&D spending in the US and Europe.
Products & Services
Digital and Engineering Research and Development (ER&D) services, including embedded systems, mechanical engineering, and software outsourcing for the Transportation, Mobility, Industrial, and Healthcare sectors.
Brand Portfolio
Onward Technologies, Onward Tech.
New Products/Services
New focus on AI-driven engineering services and Data Center/Cloud migration services for European manufacturing clients, expected to drive double-digit growth.
Market Expansion
Expansion into the Netherlands and Canada via new subsidiaries, alongside strengthening existing footprints in the US, UK, and Germany.
Market Share & Ranking
Not disclosed; however, the company is noted as a smaller player compared to 'much larger peers' in the ER&D space.
Strategic Alliances
Strategic investment and partnership with Convergent Finance LLP, which provided INR 70 crore to fund growth initiatives.
External Factors
Industry Trends
The ER&D industry is shifting toward AI, electrification in automotive, and digital health. Onward is positioning itself to capture this by investing in these specific competencies to move from single-digit to double-digit growth.
Competitive Landscape
Faces intense competition from large-scale Indian IT majors and global engineering firms who have better economies of scale and pricing flexibility.
Competitive Moat
The moat is built on long-standing relationships with global OEMs and deep domain expertise in niche verticals like Heavy Machinery. Sustainability depends on the ability to scale the HCLS vertical and successfully transition to AI-led engineering.
Macro Economic Sensitivity
Highly sensitive to global R&D spending cycles. A slowdown in US/European manufacturing capex would directly reduce demand for ER&D services.
Consumer Behavior
Clients are increasingly demanding 'offshore-onsite' hybrid models and faster turnaround times for digital transformation projects.
Geopolitical Risks
Exposure to 'Trump tariffs' and US trade policy; however, management views the current US environment as 'progressive' with companies increasing R&D and innovation spending.
Regulatory & Governance
Industry Regulations
Compliance with global data privacy laws (GDPR), industry-specific regulatory standards for healthcare engineering, and immigration/visa restrictions for onsite employees.
Environmental Compliance
The company monitors ESG risks as part of its enterprise-wide risk management strategy, though specific INR costs are not disclosed.
Taxation Policy Impact
The company follows standard corporate tax rates in India and respective international jurisdictions; specific effective tax rate % is not disclosed.
Legal Contingencies
The company maintains a global compliance framework to manage regulatory requirements; no specific high-value pending court cases or INR values for legal disputes were disclosed in the provided documents.
Risk Analysis
Key Uncertainties
Attrition and talent acquisition risks are primary; high demand for engineers from GCCs could increase wage costs by double digits, impacting the 15% margin target.
Geographic Concentration Risk
Significant revenue concentration in North America and Europe; economic downturns in these regions would disproportionately affect the order book.
Third Party Dependencies
Dependency on global payroll experts and external auditors (BSR & Co. LLP) for operational integrity.
Technology Obsolescence Risk
Risk of falling behind in AI and Cloud competencies; the company is mitigating this by investing in new capabilities for the 2026 runway.
Credit & Counterparty Risk
Receivables quality is considered healthy given the 'reputed' and 'multinational' nature of the 80-client base, though debtors turnover slowed slightly to 4.5.
