Onward Technologies Q2 FY27 results: net profit up 40.5% to ₹16.77 crore, revenue up 22.5%

How did Onward Technologies perform in Q2 FY27?

Onward Technologies reported consolidated revenue of ₹170.18 crore for Q2 FY27, up 22.5% from ₹138.97 crore in Q2 FY26 and 13.9% from ₹149.43 crore in Q1 FY27. Total income was ₹171.22 crore, against ₹140.10 crore a year earlier and ₹151.16 crore in the previous quarter.

EBITDA rose to ₹26.54 crore from ₹19.87 crore a year earlier and ₹18.37 crore in Q1 FY27. The EBITDA margin was 15.6%, compared with 14.3% in Q2 FY26 and 12.3% in Q1 FY27, an increase of 1.3 percentage points and 3.3 percentage points, respectively.

Profit before tax was ₹22.12 crore, up from ₹15.83 crore a year earlier and ₹14.78 crore in the previous quarter. PAT was ₹16.77 crore, against ₹11.94 crore and ₹11.17 crore, while basic EPS was ₹7.65, compared with ₹5.26 and ₹5.00. On a standalone basis, revenue was ₹128.93 crore and PAT was ₹15.46 crore.

What changed in Onward Technologies' costs and profit?

Total expenses increased by ₹24.83 crore year on year to ₹149.10 crore, with employee cost up ₹20.46 crore to ₹118.14 crore and other expenses up ₹4.08 crore to ₹25.50 crore. Depreciation rose by ₹0.55 crore to ₹4.76 crore, while finance costs fell by ₹0.27 crore to ₹0.69 crore. There was no exceptional item in the quarter.

Other income was ₹1.04 crore, down ₹0.09 crore from ₹1.13 crore in Q2 FY26. Tax expense increased by ₹1.46 crore to ₹5.35 crore. The company said Q2 performance was driven by deeper engagement with strategic customers, improved utilisation, higher productivity, operating leverage and offshore execution.

Against Q1 FY27, total expenses rose by ₹12.72 crore to ₹149.10 crore. Employee cost increased by ₹8.88 crore to ₹118.14 crore, other expenses by ₹3.70 crore to ₹25.50 crore, depreciation by ₹0.12 crore to ₹4.76 crore and finance costs by ₹0.01 crore to ₹0.69 crore. Other income fell by ₹0.69 crore to ₹1.04 crore, and tax rose by ₹1.74 crore to ₹5.35 crore.

How did the first half of FY27 go?

In H1 FY27, Onward Technologies reported consolidated revenue of ₹319.61 crore, up 17.5% from ₹272.12 crore in H1 FY26. Total income rose 16.9% to ₹322.38 crore from ₹275.71 crore, while profit before tax increased 16.2% to ₹36.90 crore from ₹31.75 crore.

PAT for the first half was ₹27.94 crore, up 13.3% from ₹24.67 crore, and basic EPS increased 16.2% to ₹12.63 from ₹10.87. The company added 432 net employees during H1 FY27, taking its global workforce to 2,917 professionals, according to the earnings presentation.

What do the balance sheet and cash flow show?

Total assets stood at ₹376.53 crore on 30 September 2026, compared with ₹370.57 crore on 31 March 2026. Total equity was ₹246.44 crore, against ₹253.51 crore, while cash increased to ₹47.99 crore from ₹36.86 crore and there were no borrowings at either date. Trade receivables were ₹147.91 crore, compared with ₹120.00 crore.

H1 FY27 operating cash flow was ₹18.45 crore, against ₹35.02 crore in H1 FY26. Investing cash flow was ₹35.39 crore, compared with ₹5.15 crore, while financing cash flow was negative ₹42.74 crore, compared with negative ₹23.94 crore. Capital expenditure was ₹9.13 crore, against ₹12.22 crore a year earlier.

How has Onward Technologies done over the last 8 quarters?

Revenue rose in each of the last eight quarters. It reached ₹170.18 crore in Q2 FY27, up from ₹149.43 crore in Q1 FY27, while PAT increased to ₹16.77 crore from ₹11.17 crore. The EBITDA margin also rose to 15.6% from 12.3% in the previous quarter.

Across the available quarterly trend, PAT was lowest at ₹6.04 crore in Q3 FY25 and reached ₹16.77 crore in Q2 FY27. The EBITDA margin bottomed at 9.1% in Q3 FY25 and rose to 15.6% in Q2 FY27. Revenue moved from ₹123.39 crore in Q3 FY25 to ₹170.18 crore in the latest quarter.

What else did the company announce?

On 16 October 2026, the board approved and took on record the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026. The results were reviewed by the Audit Committee, and the statutory auditors issued an unmodified review conclusion.

The company filed an earnings presentation with the results. It reported 11 consecutive years of dividends, net cash of ₹97.1 crore and no net debt, while the same-day board outcome did not announce a new dividend, fund raise or appointment. The results filing also disclosed that 5,48,780 shares bought back through the tender offer were extinguished on 11 June 2026.

What did Onward Technologies' management say?

Management said FY27 revenue growth guidance was raised to 15%-18% and EBITDA margin guidance to 13.8%-14.3%, based on strong H1 execution and improved visibility from existing customers, particularly in North America. The outlook incorporates the new US regulatory environment and some AI productivity impact. Jigar Mehta said: “Revenue is not the challenge. For a company of our size, execution is the challenge.”

Management said DSO had reached 80 days against a 65-70-day target and was expected to normalise within two quarters. It also expected another few hundred net hires in Q4 FY27, with Q1 FY28 described as a critical ramp quarter. The Chennai AI lab was expected to become operational by Q4 FY27 or early 2027, while Pune’s fourth design centre was expected to be fully operational by November or December.

Management said annual customers billing $1 million increased from 16 to 18 and that the company aimed to move each customer toward approximately $10 million per year. It also cited a three-year digital-engineering renewal worth ₹44.5 crore, with contract value up over 70%. Management identified execution, US visa and local-hiring requirements, AI adoption, delayed purchase orders and customer payments, and access to specialists as risks.

How did Onward Technologies shares react?

The stock was up 19.3% five, 15 and 30 minutes after the filing appeared. It closed 19.7% higher on the reaction day from the previous close, and by the next day’s close it was up 27.2% from that pre-results close. By five sessions, the stock was up 18.8% from the pre-results close.

The IT Enabled Services median was up 1.0% on the reaction day, down 0.9% by the next close and down 6.6% by five sessions. Onward Technologies’ excess moves were 18.7 percentage points, 28.1 percentage points and 25.4 percentage points, respectively. Earlier reaction-day moves were positive on five occasions and negative on three, ranging from negative 8.0% to positive 17.5%.

How did other IT Enabled Services companies do?

Among 28 IT Enabled Services peers compared for the quarter, the median revenue growth was 21.9%. Fourteen peers grew slower than Onward Technologies and 13 grew faster. Of the 25 peers for which profit was compared, 19 reported higher profit.