Top 25 client revenue share
88%
+8pp YoY
Increased from 80% in FY22, reflecting successful client pruning strategy.
ONWARDTECHNOLOGIES
Information Technology
15 May 2026
Onward Technologies Limited — Q4 FY26
Onward Technologies delivered a record FY26 with revenue of ₹550 crore (+10.5% YoY) and EBITDA of ₹71.9 crore (+60.9% YoY), achieving an EBITDA margin of 13.2% — the highest in company history.
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Onward Technologies delivered a record FY26 with revenue of ₹550 crore (+10.5% YoY) and EBITDA of ₹71.9 crore (+60.9% YoY), achieving an EBITDA margin of 13.2% — the highest in company history. Growth was driven by operating leverage, client concentration (top 25 clients now 88% of revenue), and cost discipline. The company exited low-value clients, reducing headcount to 2,485 while revenue per employee rose to ~₹22 lakh. Management reiterated guidance for double-digit revenue and EBITDA growth in FY27, citing strong visibility from existing clients (95-98% of revenue). A dividend of ₹8 per share was recommended. Key risk: slower-than-expected ramp-up in the transportation vertical, which declined 1% YoY due to tier-1/2 exits and delayed OEM growth.
Key Numbers
Employee headcount
2,485
flat YoY
Stable headcount despite revenue growth, indicating productivity gains.
Attrition rate
14.85%
-200bps YoY
Record low attrition, driven by focused HR initiatives and employee engagement.
Net cash
₹127.3 crore
+20% YoY
Highest ever cash reserves, providing balance sheet flexibility for investments.
Management Guidance
Double-digit revenue growth in FY27
Management expects sustained double-digit revenue growth, with 95-98% coming from existing clients.
Management guidance revenueDouble-digit EBITDA margin in FY27
EBITDA margin expected to remain in double digits, with potential expansion from operating leverage.
Management guidance marginsCapex of ~₹25 crore for labs and client needs
Planned capex of about ₹25 crore over the next few years for setting up labs and strengthening existing client engagements.
Management guidance capexDividend increased to ₹8 per share
Board recommended a dividend of ₹8 per share, the highest in company history, reflecting confidence in cash flows.
Management guidance otherKey Risks
Transportation vertical underperformance
Transportation vertical declined 1% YoY due to tier-1/2 exits and slower OEM ramp-up; recovery may take longer than expected.
medium · analyst_questionAI disruption to engineering services
While management downplays near-term impact, AI tools could eventually reduce billable hours or shift client budgets away from traditional engineering services.
medium · analyst_questionClient concentration risk
Top 25 clients account for 88% of revenue; loss of any key client could materially impact financials.
high · data_observationConstant currency growth may be lower
Reported revenue growth of 10.5% includes rupee depreciation benefit; constant currency growth could be significantly lower.
medium · analyst_questionNotable Quotes
We are an engineering services company, not an IT company. So far we have not seen any impact of AI on engineering services.
We want to underpromise and overdeliver. We want to make sure that we deliver for you guys.
Our journey from 550 crores to let's say next three years is going to be very exciting.
Frequently Asked Questions
What was Onward Technologies's revenue in Q4 FY26?
Onward Technologies reported revenue of ₹137 Cr in Q4 FY26, representing a +10.5% change compared to the same quarter last year.
What guidance did Onward Technologies management give for FY27?
Double-digit revenue growth in FY27: Management expects sustained double-digit revenue growth, with 95-98% coming from existing clients. Double-digit EBITDA margin in FY27: EBITDA margin expected to remain in double digits, with potential expansion from operating leverage. Capex of ~₹25 crore for labs and client needs: Planned capex of about ₹25 crore over the next few years for setting up labs and strengthening existing client engagements. Dividend increased to ₹8 per share: Board recommended a dividend of ₹8 per share, the highest in company history, reflecting confidence in cash flows.
What are the key risks for Onward Technologies in FY27?
Key risks include Transportation vertical underperformance — Transportation vertical declined 1% YoY due to tier-1/2 exits and slower OEM ramp-up; recovery may take longer than expected.; AI disruption to engineering services — While management downplays near-term impact, AI tools could eventually reduce billable hours or shift client budgets away from traditional engineering services.; Client concentration risk — Top 25 clients account for 88% of revenue; loss of any key client could materially impact financials.; Constant currency growth may be lower — Reported revenue growth of 10.5% includes rupee depreciation benefit; constant currency growth could be significantly lower..
Did Onward Technologies meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Onward Technologies Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.