ONWARDTEC
Onward Technologies financials
- Market cap
- ₹633 Cr
- Sector
- Information Technology
- Calls analysed
- 6
Onward Technologies Limited Q1 FY27
What went well
- Highest ever quarterly revenue of INR 151.2 crore, marking the first time crossing the INR 150 crore milestone.
- Strong revenue growth of 11.5% YoY and 8.7% QoQ, demonstrating robust business momentum.
- Significant EBITDA expansion, up 20% QoQ to INR 18.4 crore, with margins improving by 113 bps sequentially to 12.3%.
What to watch
- Subcontracting costs increased 36% YoY from INR 25 crore to INR 34 crore, attributed to macroeconomic conditions and local hiring, though management states the ratio to employee cost is down.
What Onward Technologies Limited does
Onward Technologies, founded in 1991, is an engineering R&D (ER&D) and digital-services outsourcing company that designs, tests and develops products and software for global OEMs across three focused verticals: Industrial Equipment & Heavy Machinery, Transportation & Mobility, and Healthcare & Life Sciences. It earns revenue through time-and-material and fixed-price outsourced engineering contracts, delivering work from centres in India (Mumbai, Pune, Chennai, Bengaluru, Hyderabad) combined with onsite/nearshore offices and subsidiaries in the US, Germany, Netherlands and Canada. Its services span new product development, embedded software (AUTOSAR, middleware, ADAS, EV/connected-vehicle systems), simulation and testing (FEA/CFD), cloud/data engineering and AI-led solutions, and medical-device design with regulatory support (FDA, CE, MDR/IVDR, RoHS/REACH).
Segments
- Industrial Equipment & Heavy Machinery (IEHM)
- Transportation & Mobility (T&M)
- Healthcare & Life Sciences (HCLS)
- Total employees
- 2,485 (as of 31 Mar 2026)
- Global offices
- 12 offices across 6 countries (FY25)
- Strategic/active clients
- 75, narrowed down from ~250 (FY26)
- Global subsidiaries
- 4 foreign subsidiaries (USA, Germany, Netherlands, Canada) + 1 Indian subsidiary (OT Park Pvt Ltd)
- Focused industry verticals
- 3 (IEHM, T&M, HCLS)
- Top-25 client revenue concentration
- 88% (FY26)
Guidance record · Q1 FY27
what the last two calls moved 15 tracked 0 delivered 2 missed 13 open- Total Headcount missed said Q1 FY26 Promised: approximately 2,700 people by March 31, 2026 Q1 FY27: Promise concluded. The target was missed as of FY26-end. No new headcount data provided.
- Healthcare Vertical Client Revenue at risk said Q2 FY26 Promised: at least one to three clients cross $1 million per year Q1 FY27: Management explicitly stated: 'In HCLS vertical, we don't have clients that have crossed the USD 1 million mark yet.' With the deadline of Q2 FY27 approaching, the target is at risk.
- Annual Revenue Growth on track said Q1 FY26 Promised: double-digit annual revenue growth Q1 FY27: Achieved 11.5% YoY revenue growth. Management reiterated guidance: 'continue to deliver robust double-digit revenue growth'.
All 15 tracked — every revision, and every one management stopped mentioning.
Open the guidance ledgerQuarterly results
Q1 FY27: revenue up 12.0%, net profit down 15.4% against the same quarter last year.
| Line item | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 123 | 123 | 127 | 133 | 139 +13% | 135 +10% | 137 +8% | 149 +12% |
| EBITDA | 8 | 11 | 14 | 17 | 20 +150% | 20 +82% | 15 +7% | 18 +6% |
| Net profit | 4 | 6 | 10 | 13 | 12 +200% | 10 +67% | 10 +0% | 11 −15% |
How to read this
₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.
Performance −11.9% 1Y
1Y: ₹321.9 on 10 Sept 2025 → ₹283.65. High ₹348 (1 Feb 2026), low ₹210.15 (30 Mar 2026).
How the price took the results
close before → close after
- Q1 FY27
- +1.6%
- 16 Jul
- Q4 FY26
- −3.9%
- 5 May
- Q3 FY26
- +2.3%
- 16 Jan
- Q2 FY26
- −1.7%
- 17 Oct
The move from the last close before each results date to the first close after it — the market's first read on the quarter, not the quarter itself.
Financials, as filed
Revenue grew 7.2% a year over 3 years, FY23 to FY26. Operating margin widened to 13.2%.
| Year ending | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|
| Revenue | ₹441 Cr | ₹472 Cr | ₹491 Cr | ₹544 Cr |
| Operating profit | ₹28 Cr | ₹53 Cr | ₹45 Cr | ₹72 Cr |
| Operating margin | 6.4% | 11.2% | 9.2% | 13.2% |
| Interest | ₹0 Cr | ₹0 Cr | ₹4 Cr | ₹3 Cr |
| Depreciation | ₹12 Cr | ₹12 Cr | ₹12 Cr | ₹15 Cr |
| Net profit | ₹11 Cr | ₹35 Cr | ₹27 Cr | ₹45 Cr |
| Net margin | 2.5% | 7.4% | 5.5% | 8.3% |
| Cash from operations | ₹6 Cr | ₹62 Cr | ₹32 Cr | ₹65 Cr |
| Free cash flow | ₹-1 Cr | ₹61 Cr | ₹28 Cr | ₹46 Cr |
| ROCE | 10.0% | 22.0% | 16.0% | 23.0% |
How to read this
From the company's own filings. Margins are computed from the filed sums; a year with an incomplete quarter is left blank rather than estimated.
Balance sheet
| Year ending | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|
| Equity capital | ₹16 Cr | ₹22 Cr | ₹22 Cr | ₹23 Cr | ₹23 Cr | ₹22 Cr |
| Reserves | ₹58 Cr | ₹141 Cr | ₹152 Cr | ₹185 Cr | ₹210 Cr | ₹231 Cr |
| Borrowings | ₹25 Cr | ₹19 Cr | ₹17 Cr | ₹28 Cr | ₹39 Cr | ₹40 Cr |
| Other liabilities | ₹38 Cr | ₹45 Cr | ₹50 Cr | ₹50 Cr | ₹70 Cr | ₹74 Cr |
| Total liabilities | ₹138 Cr | ₹227 Cr | ₹240 Cr | ₹285 Cr | ₹341 Cr | ₹367 Cr |
| Fixed assets | ₹30 Cr | ₹57 Cr | ₹54 Cr | ₹63 Cr | ₹84 Cr | ₹89 Cr |
| Capital work in progress | ₹0 Cr | ₹0 Cr | ₹0 Cr | ₹1 Cr | ₹0 Cr | ₹0 Cr |
| Investments | ₹0 Cr | ₹0 Cr | ₹0 Cr | ₹0 Cr | ₹0 Cr | ₹0 Cr |
| Other assets | ₹108 Cr | ₹170 Cr | ₹187 Cr | ₹222 Cr | ₹257 Cr | ₹279 Cr |
| Total assets | ₹138 Cr | ₹227 Cr | ₹240 Cr | ₹285 Cr | ₹341 Cr | ₹367 Cr |
How to read this
As filed each year. A line the company does not report — deposits for a non-lender, for instance — is left out rather than shown as a row of dashes.
What the price assumes
AttractiveTo justify its price of ₹284, this stock must grow earnings at 7% every year for 7 years. Our analysis caps realistic growth at ~56%. At that growth it is worth ₹3059 — upside of 979%.
- Growth the price implies
- 6.7% a year
- for 7 years, fading to 4%
- It has actually compounded at
- 58.8% a year
- net profit, FY23–FY26 · EPS 55.6%
- The gap
- -0.5 pp
- 979% downside if it only repeats history
All earnings calls (5)
Read the Q1 FY27 call →Learn to analyse Onward Technologies Limited
Guides on how to read this kind of business and the numbers that matter.