Onward Technologies has announced its audited financial results for the quarter and year ended March 31, 2026, approved at a Board meeting held on May 5, 2026. The company delivered its strongest annual performance to date, reporting a consolidated net profit of ₹46.7 crore (PAT, excluding one-time exceptional item due to new labour code in Q3 FY26) for the fiscal year, a significant jump of 72.3% from ₹27.1 crore in the previous year. Total revenue reached a record ₹550.9 crore, reflecting a revenue CAGR of 15.3% and an EBITDA CAGR of 35.4% over FY22–FY26. The statutory auditors, M/s BSR & Co. LLP, have expressed an unmodified opinion on the audited standalone and consolidated financial results. Pursuant to Regulation 30 and Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, an extract of the financial results for the quarter and year ended March 31, 2026 was published in Free Press Journal (in English) and Navshakti (in Marathi) on May 06, 2026.

Consolidated Annual Financial Performance

The company's full-year consolidated performance demonstrated strong operating leverage and cost discipline. Revenue from operations for FY26 stood at ₹543.9 crore, up from ₹491.3 crore in FY25, while EBITDA expanded sharply to ₹71.9 crore from ₹44.7 crore, with margins improving by 412 basis points to 13.2%. The following table presents the key consolidated financial metrics for FY26 alongside prior-year comparatives:

* Excluding one-time exceptional item due to new labour code in Q3 FY26

Standalone Financial Performance

On a standalone basis, Onward Technologies also reported healthy growth for FY26. Standalone revenue from operations stood at INR 41,677.36 lakhs, compared to INR 38,107.58 lakhs in FY25. Total standalone income for FY26 was INR 42,584.05 lakhs versus INR 39,225.94 lakhs in FY25. Standalone net profit for FY26 came in at INR 3,215.88 lakhs, up from INR 2,438.35 lakhs in the prior year. Diluted EPS on a standalone basis was INR 14.17 for FY26 compared to INR 10.64 in FY25.

Q4 FY26 Quarterly Performance

For the quarter ended March 31, 2026, total revenue grew 6.9% year-on-year to ₹139.0 crore, compared to ₹130.0 crore in Q4 FY25 and ₹136.1 crore in Q3 FY26. EBITDA for Q4 FY26 stood at ₹15.3 crore with a margin of 11.2%, reflecting 10.1% YoY growth. Q4 EBIT stood at 109M rupees versus 155M rupees in Q3 FY26 on a sequential basis, with the EBIT margin contracting to 7.98% from 11.5% QoQ. Consolidated net profit for Q4 came in at 96M rupees compared to 101M rupees in the previous quarter. PBT and PAT saw year-on-year declines of 4.7% and 10.4% respectively on a quarterly basis, with diluted EPS at ₹4.23 for the quarter.

* Excluding one-time exceptional item due to new labour code in Q3 FY26

Geographical Revenue Breakdown

The consolidated revenue from operations for FY26 was INR 54,385.24 lakhs. On a geographical basis, India contributed INR 29,815.23 lakhs, while the USA accounted for INR 16,177.39 lakhs. Europe contributed INR 1,920.10 lakhs and other geographies (including Canada and the United Kingdom) contributed INR 6,472.52 lakhs to total revenue for FY26.

Operational Highlights

Onward Technologies reported a total headcount of 2,485 employees as of the end of FY26. The top 25 clients contributed 88% of total revenues, reflecting strong concentration among strategic accounts. Attrition stood at 14.85% on a last twelve months (LTM) basis. Cash and bank reserves stood at ₹127.3 crore as of March 31, 2026.

Dividend Recommendation

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors has recommended the payment of a Final Dividend of ₹8 per equity share, each with a face value of ₹10, for the financial year ended March 31, 2026. This represents the company's 11th consecutive annual dividend and an increase over the prior year's ₹5 per share. The dividend is subject to the approval of shareholders at the ensuing 35th Annual General Meeting (AGM).

Board-Level Re-appointments

At the Board meeting held on May 5, 2026, the Board also approved the re-appointment of key directors, subject to shareholder approval at the ensuing AGM. The re-appointments are detailed below:

Mr. Harish Mehta, co-founder of NASSCOM and credited as a driving force behind the Indian IT industry, holds a Bachelor's degree in Electrical Engineering from the College of Engineering, Pune, and a Master's degree in Computer Science from Brooklyn Polytechnic Institute, New York. Mr. Jigar Mehta, a second-generation entrepreneur who has led the company's transformation to a 2,500+ strong team with operations across India, USA, UK, Germany, and Canada, is a graduate of the Owner/President Management program at Harvard Business School. Mr. Dhanpal Jhaveri is Vice Chairman of Everstone Group and Co-Founder and CEO of Eversource Capital, while Mr. Jai Diwanji is a partner at Desai & Diwanji with over 25 years of legal experience. All four directors have been confirmed as not debarred from holding office pursuant to any SEBI or other authority order.

Legal Proceedings

During the year, a former employee initiated legal proceedings against Onward Technologies Inc. (OTI), a wholly owned subsidiary incorporated in the United States, before the Circuit Court of Cook County, Illinois. Pursuant to an ex-parte order of the Court, bank balances of USD 12.6 lakhs (₹1,130.64 lakhs) of OTI were temporarily restricted. Subsequently, OTI filed petitions before the Court seeking relief, pursuant to which the ex-parte orders were vacated and the restrictions on the bank balances were lifted. As at the reporting date, there are no restrictions on any bank balances of OTI. The underlying legal proceedings continue to be contested on merits. Based on management's assessment and independent legal advice, the likelihood of an adverse outcome is considered not probable, and accordingly no provision has been recognised in the financial statements. The matter has been disclosed as a contingent liability.

Management Commentary & Guidance

Commenting on the performance, Mr. Jigar Mehta, Managing Director, noted that FY26 marks the company's strongest annual performance to date, delivering record revenue of ₹550.9 crore and record EBITDA of ₹71.9 crore, with EBITDA growing 60.9% YoY and margins expanding to 13.2%. The performance was anchored in execution excellence, operating leverage, and sharp cost discipline, while maintaining strong cash generation. Management highlighted sustained momentum across ER&D and digital engineering services, supported by deeper engagement with strategic accounts, and continued investment in strengthening capabilities and expanding presence across the US and Europe.

In the post-results earnings call, management reiterated guidance for sustained double-digit revenue and EBITDA growth, with strong visibility for the current and next two years. Approximately 95% to 98% of FY27 revenue is expected from existing clients, indicating strong client relationships and recurring business. The 13.2% EBITDA margin achieved in FY26 is considered sustainable and expected to improve further due to operating leverage and growth across all three verticals. Management aims for high teens margins and revenue, and is actively investing to transition the company into an AI-ready digital engineering services provider. CapEx for the next two years is projected at approximately INR 25 crores, primarily for existing clients and setting up labs.

Onward Technologies Limited's board of directors, at its meeting held on May 5, 2026, recommended the re-appointment of Mr. Harish Mehta as Whole-time Director designated as Executive Chairman and Mr. Jigar Mehta as Managing Director, each for a further period of five years effective May 14, 2026. The recommendations were made on the basis of the Nomination and Remuneration Committee's guidance and remain subject to approval by shareholders at the company's ensuing Annual General Meeting. The disclosures were made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Re-appointment Details

The key particulars of the re-appointments, as disclosed in Annexure A of the regulatory filing, are presented below:

In addition to the re-appointments, the board has approved revised terms and conditions of remuneration for both directors for a period of three years with effect from May 14, 2026, also subject to shareholder approval at the Annual General Meeting.

Profiles of the Re-appointed Directors

Mr. Harish Mehta — Executive Chairman

Mr. Harish Mehta is a co-founder of NASSCOM and is credited with being a driving force behind the growth of the Indian IT industry. He has founded, led, and mentored Onward Technologies across two generations. He is the author of The Maverick Effect, recognised as a National Bestseller in 2022, and is also credited with introducing The Indus Entrepreneurs (TiE) to India. Mr. Mehta has received multiple Lifetime Achievement Awards, including recognition from Deccan Herald (2004), IMC Chamber of Commerce and Industry (2018), and DataQuest ICT Business Awards (2023). He has also been honoured by India's Prime Minister, Mr. Narendra Modi, in recognition of his contributions to the IT industry over 25 years. Academically, he holds a Bachelor's degree in Electrical Engineering from the College of Engineering, Pune, and a Master's degree in Computer Science from Brooklyn Polytechnic Institute, New York (USA).

Mr. Jigar Mehta — Managing Director

Mr. Jigar Mehta is a second-generation entrepreneur who was appointed Managing Director of the company in May 2016. He has been instrumental in transforming the company from a 300-employee organisation to a 2,500+ strong team with operations across India, USA, UK, Germany, and Canada. Mr. Jigar Mehta is a graduate of the Owner/President Management (OPM) program at Harvard Business School, an alumnus of Boston University, Massachusetts, and St. Xavier's College, Mumbai. He is also an active member of the YPO Bombay chapter.

Regulatory Compliance

The intimation was filed by Aakash Joshi, Company Secretary and Compliance Officer (Membership No.: A60953), on May 5, 2026, in accordance with the SEBI Master Circular dated November 11, 2024. Both Mr. Harish Mehta and Mr. Jigar Mehta have been confirmed as not debarred from holding the office of Director pursuant to any order of SEBI or any other authority.