Onward Technologies Ltd(ONWARDTEC)

NSE: ONWARDTECBSE: 517536

₹ 433.1-5.76%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 964 crWebsite: www.onwardgroup.comUpdated: 24 Oct 2026

About

Onward Technologies provides digital and engineering research & development (ER&D) services to global clients in North America and Europe, across industrial equipment, automotive, transportation, healthcare and life sciences. It reported revenue of 543.85 crore in FY26. Its global workforce was 2,917 professionals in Q2 FY27, and all its revenue comes from overseas clients in North America and Europe. Its work is about 50% mechanical engineering and about 50% software.^[1][2][3]

Business verticals

Industrial Equipment & Heavy Machinery (IEHM) made up 65% of revenue in H1 FY27, vs 63% in FY26 and 57% in FY25.^[3][4]
Transportation, covering automotive and rail, made up 32% of FY26 revenue. Its revenue fell 1% YoY in FY26 after the company exited Tier-1 and Tier-2 suppliers.^[4]
Healthcare made up 3% of revenue in Q2 FY26, down from 5% in Q2 FY25.^[5]
Mechanical engineering is about 50% of revenue and software is about the other 50%, as of Q4 FY26.^[4]
In FY2019 the reported segments were Mechanical Engineering Design Services (76.3% of revenue) and Information Technology Services (23.7%).^[6]

Key operating numbers

Headcount was 2,917 in Q2 FY27 after 432 net additions in H1 FY27. It was 2,485 in Q4 FY26.^[3][4]
Revenue per employee was about ₹22 lakhs in FY26, up from ₹8-9 lakhs four years earlier. Management wants to reach ₹30-40 lakh per employee by building AI-led capabilities.^[4][3]
Attrition was 14% as stated in the Q2 FY27 call. It was 14.85% in FY26.^[3][4]
Offshore work was 69% of revenue in Q3 FY26, vs 72% in Q2 FY26 and 72% in Q3 FY25.^[7]
Time-and-material contracts were 84% of revenue in Q1 FY27, down from 89% in Q1 FY26.^[8]
Days sales outstanding were 80 days in Q2 FY27, 7 days more than a year earlier. They were 75 days in Q1 FY27.^[3][8]
Management said the contract value already committed for FY27 had passed FY26's full-year revenue, as of Q1 FY27.^[8]

Customers and markets

The company had 72 active clients in H1 FY27 and 73 in Q1 FY27, after cutting the base from 80 to 72 by Q4 FY26.^[3][8]
18 clients billed more than $1 million a year in Q1 FY27, up from 16 in Q1 FY26.^[8]
The top 25 clients made up 88% of revenue in Q4 FY26, vs 84% in FY25.^[4]
All revenue comes from overseas clients in North America and Europe, with the USA leading growth in existing accounts, as of Q2 FY27.^[3]
By geography in Q3 FY26: the US was 37% of revenue (up from 32% in Q3 FY25), India 50% and Europe 13%.^[7]
Growth at clients' Global Capability Centres (GCCs) pushed up India-booked revenue during FY25-26.^[7]

Delivery centres and capacity

The company delivers from Pune, Chennai, Bangalore and Hyderabad. Pune and Hyderabad were running at full capacity as of Q3 FY26.^[7]
The Chennai AI lab was fully operational in Q1 FY27, with a few hundred staff and some seats still free.^[8]
A fourth design centre in Pune was due to open in August 2026, as stated in Q1 FY27.^[8]
About 125 employees worked onsite outside India as of Q4 FY26. The plan is to have 200-300 onsite over the next few years.^[4]

Expansion and capex

About ₹25 crore of capex is planned over two years for engineering and AI labs for existing clients, as stated in Q4 FY26.^[4]
About ₹18 crore had been spent on office upgrades and lab hardware across the four delivery cities as of Q2 FY26.^[5]
The company is building capabilities in power management, robotics and mechanical/electrical engineering for data centres in North America and Europe.^[8]
The company planned to cut its active client base to about 50, from 72, over the next couple of quarters (stated in Q4 FY26).^[4]

Recent developments

Q2 FY27: the company renewed a ₹44.5 cr, three-year managed digital services contract running Aug 2026 to Aug 2029. The contract value is 72% higher than the previous term.^[3]
Q2 FY27: the company won a new ~₹33 cr, three-year contract for an offshore R&D centre for the data centre unit of a power management company.^[3]
Q1 FY27: the company won a ₹33 crore contract to set up a dedicated offshore development centre for a North American power management company. Billing was due to start in Q2 FY27.^[8]
28 Sep 2026: the company approved an investment of up to ₹13,10,40,000 in 1,05,000 1% optionally convertible redeemable preference shares of OT Park Private Limited.^[9]
Q2 FY27: management guided FY27 consolidated revenue growth of 15-18% YoY and an FY27 EBITDA margin of 13.8-14.3%.^[3]

Board and management

Promoter executives Harish Mehta and Jigar Mehta were re-appointed for 5 years from May 14, 2026. Their proposed FY27 fixed salaries are ₹1.42 cr and ₹2.00 cr, according to the FY26 annual report.^[1]
Executive Chairman Harish Mehta is aged 78, so a special resolution is required for him to continue beyond age 75 (FY26 annual report).^[1]
The board includes PE-nominee director Harsha Raghavan (Convergent Finance), who takes no sitting fees under the Investment Agreement (FY26 annual report).^[1]
Q4 FY26: the company hired a new CIO and a new delivery leader to drive its shift toward software and AI.^[4]
Q3 FY26: the managing director said they plan to step back from day-to-day operations to focus on strategy and client engagement.^[7]

Market Cap

₹964 Cr

High / Low

₹495 / 208

Stock P/E

20.4

Price / Book

4.0

Book Value

₹111

EPS

₹19.5

No. of Shares

2.28 Cr

ROCE

23.8%

ROE

18.6%

OPM

11.5%

Debt / Equity

0.00

Sales

₹544 Cr

Net Profit

₹44 Cr

Promoter holding

40.2%

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Onward Technologies Ltd(ONWARDTEC)

About

Business verticals

Key operating numbers

Customers and markets

Delivery centres and capacity

Expansion and capex

Recent developments

Board and management

Signal history

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Verdict

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