Onward Tech Net Profit Climbs 40% in Q2; Management Upgrades FY27 Revenue Guidance to 18%

Key numbers

Quarterly Revenue	₹170.18 CrUp 22.5% YoY
EBITDA Margin	15.6%Record high
Market Cap	₹950.94 CrSoftware & Services
RSI	87.87Overbought Zone

Key highlights

• Revenue reached a record ₹170.18 crore, marking 22.46% YoY growth driven by digital engineering demand.
• EBITDA margins expanded to an all-time high of 15.6% due to increased offshore execution and productivity.
• Net profit jumped 40.5% YoY to ₹16.77 crore, showing a significant 50.18% sequential increase.
• Management raised FY27 revenue growth guidance to 15-18%, up from previous double-digit estimates.
• Secured a strategic 3-year contract renewal worth ₹44.46 crore with a 70% increase in contract value.

Record Performance Triggers Guidance Upgrade

Onward Technologies delivered a strong second quarter, with operating revenue rising 22.46% year-on-year to ₹170.18 crore. This performance has given management the confidence to upgrade its FY27 revenue growth guidance to 15-18%, compared to the previous broader target of double-digit growth. Profitability reached a milestone as EBITDA margins hit a record 15.6%, surpassing the earlier projected range of 13.8% to 14.3%.

This expansion was attributed to structural shifts toward offshore execution and higher billing productivity across its four delivery centers in India. The company also reported a 40.5% YoY jump in net profit, which stood at ₹16.77 crore for the quarter.

Strategic Contract Renewals and Wallet Share Expansion

• Renewed a three-year digital engineering engagement valued at ₹44.46 crore with a global mining equipment leader.
• Increased the number of strategic clients billing over $1 million annually from 16 to 18.
• A dedicated ₹33 crore Offshore Development Center contract went live in August 2026, boosting service capacity.
• Industrial segment leads growth, with recovery noted in the Transportation & Mobility and Healthcare verticals.
• Revenue concentration remains focused on US and European markets, mitigating domestic market volatility.

Foundations for FY27 Transformation

Q2 FY27 marks an important milestone in our transformation journey. We delivered our highest-ever quarterly revenue at ₹170 crores... The foundation we have built over the last couple of years is now translating into stronger growth, expanding profitability, and greater business resilience.

Investments in AI and Capacity Expansion

To support long-term growth, Onward Tech is pivoting toward outcome-based engineering, focusing on AI-led transformation and data center infrastructure. The company opened its fourth design center in Pune during the quarter to expand capacity for future projects. Net hiring surpassed 430 employees in the first half of the year, despite rising depreciation costs associated with the purchase of a new corporate office in Mumbai.

While management expressed caution regarding evolving offshore regulations in the US and UK, they are proactively ramping up local hiring to maintain delivery continuity for their global client base.

What to watch next

• Full revenue run-rate commissioning of the ₹33 crore ODC project by December 31, 2026.
• Normalization of Day Sales Outstanding (DSO) from 80 days toward a target of 65 days by Q4 FY27.
• Operationalization of the Chennai AI Lab to showcase innovative engineering work to global clients by March 2027.
• Reopening of the insider trading window for employees and promoters on October 18, 2026.

“Our focus as an organization continues to remain firmly on delivering this growth and converting execution excellence into sustaining profitability.”

Onward Technologies · financial snapshot

Share price	₹427.4
Market capitalisation	₹950.94 Cr
Revenue (annual)	₹543.85 Cr
Net profit (annual)	₹44.32 Cr
Revenue (latest quarter)	₹170.18 Cr+13.88% vs previous quarter
Net profit (latest quarter)	₹16.77 Cr+50.18% vs previous quarter
P/E (TTM)	19.98×Sector 23.38×
Promoter holding	40.2%+0.23% QoQ
FII holding	9.28%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.