Onward Technologies Limited announced its unaudited consolidated financial results for the quarter ended December 31, 2025, demonstrating robust year-over-year growth despite sequential challenges. The IT services company reported strong profitability improvements while navigating regulatory changes in the Indian labour landscape.

Financial Performance Overview

The company's consolidated financial performance for Q3FY26 showed mixed trends with strong annual growth but sequential moderation:

Nine-Month Performance Highlights

The nine-month period ended December 31, 2025 showcased exceptional growth momentum across key financial metrics:

Geographical Revenue Distribution

The company's revenue streams remained diversified across global markets, with India contributing the largest share:

Impact of Labour Code Changes

The company recorded exceptional items of ₹315.50 lakhs in Q3FY26, primarily due to the implementation of India's new labour codes. On November 21, 2025, the Government of India notified four consolidated labour codes, replacing 29 existing labour laws. The incremental gratuity cost impact arose from changes in wage definition under these new regulations.

Standalone Results

Onward Technologies' standalone financial results for Q3FY26 showed revenue of ₹10,185.52 lakhs compared to ₹9,649.77 lakhs in Q3FY25, representing a 5.6% year-over-year increase. Standalone net profit reached ₹606.20 lakhs versus ₹624.97 lakhs in the previous year quarter, reflecting a marginal decline of 3.0%.

Corporate Structure and Subsidiaries

The consolidated results encompass Onward Technologies Limited and its subsidiaries including Onward Technologies Inc. (USA), Onward Technologies GmbH (Germany), Onward Technologies B.V. (Netherlands), Onward Technologies Canada Inc. (Canada), OT Park Private Limited (India), and the Employee Welfare Trust. The Board of Directors approved these results at their meeting held on January 16, 2026, with statutory auditors BSR & Co. LLP providing an unmodified review conclusion.

Onward Technologies has reported its consolidated financial results for the third quarter, showing mixed performance with revenue remaining flat year-on-year while profitability and operational efficiency faced pressure. The IT software company's latest quarterly results indicate revenue of ₹1.40 billion, unchanged from the same quarter in the previous year, alongside sequential declines in key profitability metrics.

Revenue and Financial Performance Overview

The company's Q3 revenue performance remained stable at ₹1.40 billion compared to ₹1.40 billion in the corresponding quarter of the previous year, indicating no growth in top-line performance. However, profitability metrics showed sequential declines, reflecting operational challenges during the reporting period.

Operational Efficiency Metrics

The company's EBIT performance showed marginal decline with earnings before interest and tax reaching ₹155.00 million in Q3 compared to ₹156.00 million in the previous quarter. More significantly, the EBIT margin compressed to 11.50% from 12.70% quarter-on-quarter, representing a 120 basis points decline in operational efficiency.

Company Profile

Onward Technologies operates in the IT software sector and is classified as a small-cap company. While revenue remained stable year-on-year, the sequential decline in both net profit and EBIT margin suggests the company faced operational challenges during the third quarter, impacting both bottom-line profitability and operational efficiency metrics.