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Onward Technologies Posts Record Total Revenue of ₹151.2 Crore in Strong First Quarter Performance

Posted On : 2026-07-17 00:34:09( TIMEZONE : IST )

Onward Technologies Limited (BSE: 517536; NSE: ONWARDTEC), a leading global provider of digital engineering and engineering research and development (ER&D) services, today announced its financial results for the first quarter of fiscal year 2027 ended June 30, 2026. The company commenced the new fiscal year on a strong note, achieving record top-line performance and demonstrating resilient sequential operating growth.

Robust Revenue and Operating Expansion

Total revenue for the quarter reached an all-time high of ₹151.2 crore. This represents an 11.5% expansion compared to the ₹135.6 crore recorded in the same quarter of the previous fiscal year (Q1 FY26). On a quarter-on-quarter basis, total revenue climbed 8.7% over the ₹139.0 crore delivered in the final quarter of fiscal year 2026 (Q4 FY26). The company's growth momentum builds upon a solid full-year performance in fiscal year 2026, during which total revenue rose 10.5% to ₹550.9 crore from the ₹498.5 crore reported in fiscal year 2025.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew to ₹18.4 crore for the quarter. This operating profit reflects a 7.2% improvement year-on-year against the ₹17.1 crore recorded in Q1 FY26, and a substantial 20% jump sequentially from the ₹15.3 crore achieved in Q4 FY26. For comparison, the full-year EBITDA for fiscal year 2026 stood at ₹71.9 crore, which was a 60.9% increase over fiscal year 2025's EBITDA of ₹44.7 crore.

Margin Trends and Earnings Structure

The EBITDA margin for Q1 FY27 came in at 12.3%. While this represents a minor contraction of 60 basis points compared to the 12.9% margin recorded in the corresponding year-ago quarter, it marks a notable expansion of 113 basis points over the 11.2% operating margin recorded sequentially in Q4 FY26. On an annual basis, the company's EBITDA margin had expanded by 412 basis points to end fiscal year 2026 at 13.2%, up from 9.1% in fiscal year 2025.

Profit After Tax (PAT) for the first quarter was reported at ₹11.2 crore. Net profit grew by a strong 16.9% on a sequential quarter-on-quarter basis from the ₹9.5 crore posted in Q4 FY26. However, compared to the high base of ₹12.7 crore in Q1 FY26, PAT experienced a year-on-year decrease of 12.3%. The resulting PAT margin for the quarter stood at 7.5%, which is an expansion of 52 basis points over the 6.9% recorded in Q4 FY26, but a decline of 210 basis points from the 9.6% achieved in Q1 FY26. For the complete fiscal year 2026, total PAT had surged 72.3% to ₹46.7 crore from ₹27.1 crore in fiscal year 2025, excluding a one-time exceptional item relating to the new labor code adjustment in the third quarter of fiscal year 2026.

Reflecting these net profit movements, the company's diluted Earnings Per Share (EPS) stood at ₹4.98 for Q1 FY27. This represents a 17.8% recovery sequentially from the ₹4.23 recorded in Q4 FY26, though it is lower than the ₹5.57 diluted EPS reported in the high-base quarter of Q1 FY26. The full-year diluted EPS for fiscal year 2026 closed at ₹20.57, excluding the impact of the one-time exceptional item, up from ₹11.81 in fiscal year 2025. With a record revenue base and sharp sequential margin improvements, Onward Technologies enters the remaining quarters of fiscal year 2027 with strong operational momentum across its global digital engineering platforms.

Key Financial Highlights - Q1 FY27

- Total Revenue of ₹151.2 Crore, up 11.5% YoY and 8.7% QoQ.
- EBITDA of ₹18.4 Crore, up 7.2% YoY and 20% QoQ, with EBITDA margin expanding 113 bps sequentially to 12.3%.
- Profit After Tax (PAT) of ₹11.2 Crore, up 16.9% QoQ; PAT margin at 7.5%.
- Diluted EPS of ₹4.98 for the quarter.

Key Business Highlights

- Won a ₹33 Crore contract to set up a dedicated Offshore Development Center (ODC) for a leading global power management company.

- Successfully completed the Q1 FY27 share buyback programme, reflecting the Board's confidence in the Company's business model, cash generation capabilities, and long-term growth prospects.

- Number of clients billing over US$1 million rose to 18 in Q1 FY27 (from 16 in Q4 FY26).

Commenting on the results, Mr. Jigar Mehta, Managing Director, Onward Technologies, said: "Q1 FY27 was a solid start to the year. We delivered a total revenue of ₹151.2 crore, representing a strong YoY growth of 11.5% and a sequential growth of 8.7% over Q4 FY26. We continued to make progress across our strategic accounts, expanded our offshore delivery footprint, and strengthened our Digital Engineering and ER&D capabilities. Operationally, we remain focused on profitable growth, improving delivery efficiency and deepening client relationships, and I am pleased to share that our EBITDA for the quarter was ₹18.4 crore, a 20% sequential growth, with EBITDA margins at 12.3%. While quarterly performance in our industry can vary based on programme ramp-ups and customer decision cycles, our outlook for the year remains unchanged. We continue to target doubledigit revenue growth and double-digit EBITDA growth for FY27 and remain confident in our ability to create long-term value through disciplined execution and operational excellence."

Shares of Onward Technologies Limited was last trading in BSE at Rs. 288.50 as compared to the previous close of Rs. 284.00. The total number of shares traded during the day was 95069 in over 1334 trades.

The stock hit an intraday high of Rs. 308.50 and intraday low of 278.95. The net turnover during the day was Rs. 28409891.00.