Onward Technologies Limited , a global player in engineering and IT services, has reported a record-breaking second quarter for FY2026, with significant improvements in both revenue and EBITDA. The company's Managing Director, Jigar Mehta, shared key highlights during the recent earnings call.

Financial and Operational Highlights

• EBITDA margins improved to 14.30%, driven by increased utilization and productivity.
• Revenue growth transitioned from single digits to double digits year-over-year.
• LTM attrition rate decreased to 15.49%.
• DSO (Days Sales Outstanding) remained controlled at 73 days, with a target of 65 days.
• Headcount stable at 2,525 employees, unchanged over the last 5 years despite revenue growth from approximately INR 100.00 crores to INR 500.00 crores.

Business Verticals and Market Focus

Onward Technologies operates across three main verticals:

1. Industrial Equipment and Heavy Machinery (largest vertical)
2. Transportation & Mobility
3. Healthcare

The company has shifted its focus from the Indian market to predominantly serving North American and European customers over the past five years.

Infrastructure Investments

• Approximately INR 18.00 crores invested in upgrading infrastructure across delivery centers in India.
• Significant upgrades completed in Pune and Chennai facilities.
• New centers in Bangalore and Hyderabad operating efficiently.

Future Outlook

• Management expects to deliver double-digit revenue and EBITDA growth in the coming years.
• Strong demand observed in the US manufacturing industry, particularly in AI adoption.
• Potential for margin expansion due to ongoing automation efforts and transition to higher-value services.
• Focus on deepening existing client relationships rather than expanding the client base.

Strategic Direction

• Transitioning from mechanical engineering to digital and software services, with a focus on AI capabilities.
• Aiming to scale existing client engagements rather than bidding for new projects daily.
• Preference for time and material engagements over fixed-price contracts.
• No immediate plans for mergers and acquisitions, but open to opportunities that complement existing top client relationships.

Jigar Mehta expressed optimism about the company's trajectory, stating, "We have a strong execution engine in place, and with every quarter, we only get better. We believe we should have a good run rate going into 2026, and all three verticals will start performing or delivering better than where we are today."

As Onward Technologies continues to evolve its service offerings and deepen client relationships, the company appears well-positioned to capitalize on the growing demand for engineering and IT services in its key markets.

Onward Technologies Limited, a prominent player in the technology sector, has released its financial results for the second quarter and half-year ended September 30, 2025, showcasing significant growth and improved profitability.

Key Highlights

• Quarterly consolidated revenue increased to ₹140.1 crore, marking a 12.4% year-over-year increase and 3.3% quarter-over-quarter growth.
• Record EBITDA margin of 14.3%, expanding 144 basis points sequentially from 12.9% in the previous quarter.
• EBITDA grew 151.9% year-over-year to ₹19.9 crore.
• Profit after tax reached ₹11.9 crore, up 230.6% year-over-year, though down 6.5% quarter-over-quarter.
• For the half-year period, total revenue increased 13.0% to ₹275.7 crore with EBITDA margin at 13.6%.

Business Performance

Onward Technologies, specializing in digital and ER&D services, maintained its focus on three key verticals:

1. Industrial Equipment & Heavy Machinery (63% of revenue)
2. Transportation & Mobility (34%)
3. Healthcare & Life Sciences (3%)

The company employs 2,525 people with attrition at 15.49% and maintains 74 active clients, with top 25 clients contributing 87% of total revenues.

Consolidated Financial Performance

The consolidated financial results include the performance of Onward Technologies Limited and its subsidiaries. Notable figures from the unreviewed subsidiaries include:

These figures represent only the unreviewed subsidiaries and are before consolidation adjustments.

Compliance and Disclosure

Onward Technologies Limited has prepared and presented these financial results in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company continues to maintain transparency in its financial reporting, adhering to the Indian Accounting Standard 34 "Interim Financial Reporting" and other generally accepted accounting principles in India.

Conclusion

Onward Technologies has reported strong growth in revenue and profitability for Q2FY26. The company's focus on key verticals and improved EBITDA margins demonstrate its ability to capitalize on market opportunities and optimize operations. While there was a slight quarter-over-quarter decline in profit after tax, the significant year-over-year growth indicates a positive trajectory for the company.

Note: All financial figures mentioned are based on the company's reported data and may be subject to further review or adjustments.