Onward Technologies has secured an engineering services contract worth approximately ₹33 crore from a leading global power management company to launch a Dedicated Offshore Development Centre (ODC). The three-year agreement aims to provide dedicated R&D capacity to support the client's Data Center Segment, ensuring faster execution of engineering requirements. The deal enhances revenue visibility for the company through a structured, long-term engagement model.

Deal Parameters

The contract details are outlined below:

Strategic Context

The Offshore Development Centre model establishes a specialized framework for collaboration, allowing the client to leverage dedicated engineering resources. This contract underscores Onward Technologies' capability to deliver specialized engineering services in the power management domain. The filing, submitted to BSE Limited and National Stock Exchange of India, confirms that the order is from a domestic entity and does not involve related party transactions.

Onward Technologies Limited has fixed Friday, July 3, 2026, as the record date to determine shareholder eligibility for the final dividend. The company has scheduled its 35th Annual General Meeting (AGM) for Thursday, July 16, 2026, at 3:00 PM IST through video conferencing. The meeting will seek shareholder approval for the re-appointment of Mr. Harish Mehta as Executive Chairman and Mr. Jigar Mehta as Managing Director, each for a period of five years commencing from May 14, 2026. The Board has also recommended the re-appointment of Mr. Dhanpal Jhaveri and Mr. Jai Diwanji as Independent Directors for a second term of three years from May 12, 2026 to May 11, 2029. Remote e-voting will be open from July 13 to July 15, 2026, with a cut-off date of July 9, 2026 for voting eligibility. Notice of the AGM and e-voting information has been published in Free Press Journal (English) and Navshakti (Marathi) on June 23, 2026.

Financial Performance

Onward Technologies delivered its strongest financial performance to date in FY 2025-26. The company reported highest-ever total income of ₹550.9 Crore, growing 10.5% year-on-year, alongside record EBITDA of ₹71.9 Crore, up 60.9%, and record Profit After Tax of ₹46.7 Crore, up 72.3% (excluding one-time exceptional item due to new labour code). EBITDA margins expanded to 13.2%, an improvement of 412 basis points over the previous year. The company also reported a net cash position of ₹127.3 Crore as of March 31, 2026, the highest in its history.

On a standalone basis, revenue from operations stood at ₹41,677.36 Lakhs compared to ₹38,107.58 Lakhs in the previous year, registering a growth of 9.37% YoY. Standalone profit before tax rose 30.05% YoY to ₹4,286.15 Lakhs, while standalone net profit grew 31.89% YoY to ₹3,215.88 Lakhs. On a consolidated basis, revenue from operations stood at ₹54,385.24 Lakhs versus ₹49,131.61 Lakhs in the prior year, a growth of 10.69% YoY. Consolidated profit before tax increased 57.15% YoY to ₹5,704.58 Lakhs, and consolidated net profit grew 63.69% to ₹4,432.39 Lakhs. The basic EPS on a standalone basis stood at ₹14.25 per share, up from ₹10.78 per share in the previous year.

Dividend and Shareholder Returns

In line with its commitment to shareholder returns, the Board recommended a final dividend of ₹8 per equity share of face value ₹10 each (80%) for FY 2025-26, up from ₹5 per share in the prior year. This marks the company's 11th consecutive year of dividend payouts. The total outflow towards the final dividend will be ₹17.96 Crore, resulting in a dividend payout ratio of 55.83% of standalone profits. The proposed dividend is subject to shareholder approval at the AGM.

Operational and Business Highlights

Onward Technologies operates as a software and technology services outsourcing company specialising in digital, embedded, and mechanical engineering for global OEMs. The company has a workforce of 2,485 employees and operates across 12 offices in six countries. Over the last four years, the company has delivered a revenue CAGR of 15.3% and EBITDA CAGR of 35.4% while maintaining a stable headcount. Approximately 70% of business is driven by North America and 30% from Europe. The top 25 clients contributed 87% of total revenues, up from 84% in the prior year, and the number of clients with annual billing exceeding $1 million stood at 16, compared to 13 in the previous year.

The company operates across three verticals: Industrial Equipment & Heavy Machinery (IEHM), which contributed 63% of total revenue in FY 2025-26 (up from 57%); Transportation & Mobility (T&M), contributing 34%; and Healthcare & Life Sciences (HCLS), contributing 3%. Engineering centres in Pune and Hyderabad are operating at over 90% utilisation, and a new Chennai engineering centre has been established to strengthen offshore delivery capacity. The company's service mix is approximately 50% mechanical engineering and 50% software-led work, reflecting an ongoing transition toward higher-value digital engineering capabilities.

Director Re-appointments and Remuneration

The Board proposes to re-appoint Mr. Harish Mehta as Whole-time Director designated as Executive Chairman for five years. Mr. Mehta, who has attained the age of 75 years, requires a special resolution for his continuation. His remuneration for FY 2026-27 includes a fixed salary of ₹1.42 Crore, a performance incentive capped at 150% of fixed salary, and perquisites such as a fully furnished house, medical reimbursement up to ₹5 Lakhs, and insurance coverage. Mr. Jigar Mehta is proposed to be re-appointed as Managing Director for five years. His remuneration for FY 2026-27 includes a fixed salary of ₹2 Crore, a performance incentive linked to 5% of Net Profit, and similar perquisites. Both appointments are subject to shareholder approval via special resolution, particularly as the remuneration may exceed 5% of net profits.

During FY 2025-26, Mr. Harish Mehta received total remuneration of ₹383.17 Lakhs and Mr. Jigar Mehta received ₹459.80 Lakhs. The ratio of their remuneration to the median employee remuneration of ₹9.56 Lakhs stood at 40.08x and 48.10x respectively.

CSR and ESG Highlights

During FY 2025-26, Onward Technologies incurred CSR expenditure of ₹62.47 Lakhs, equivalent to 2% of the average net profit of ₹3,123.39 Lakhs as per Section 135(5) of the Companies Act, 2013. CSR initiatives covered education, healthcare, community well-being, and sports. Key partnerships included Avasara Academy, RA Foundation, Foundation to Educate Girls Globally, SRCC, Roti Bank Foundation, Inspire Institute of Sport, and the All India Chess Federation for the Blind. On the environmental front, total energy consumed was 4,430.83 Gigajoules, with total Scope 1 and Scope 2 GHG emissions of 773.11 tonnes of CO2 equivalent. The company also transitioned a portion of its electricity consumption to renewable energy sourced through windmills and introduced electric vehicles for senior management transportation, resulting in a 54.75% reduction in GHG emissions compared to equivalent petrol-operated vehicles.