Onward Technologies Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Onward Technologies Ltd filed with BSE on 11 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Onward Technologies reported record FY26 revenue of Rs 550 crore, up 10.5% year-on-year, with EBITDA of Rs 71.9 crore and gross margin at 13.2%. Q4 FY26 revenue was Rs 139 crore, up 6.9% year-on-year, while EBITDA margin for the quarter was 11.2%. Management discussed the transportation and auto vertical's revenue de-growth, client concentration among top 25 accounts, and the impact of AI tools on the engineering services business, and the Board recommended a dividend of Rs 8 per share.
Numbers mentioned
Revenue: INR 550 crores (FY26)
p. 3
“We've delivered record revenue of INR 550 crores, which is a Y-o-Y growth of 10.5% and a record EBITDA of INR 71.9 crores, with gross margin improving to highest in our history at 13.2%.”
Jigar Mehta, page 3 of the filed PDF · View the filing
EBITDA: INR 71.9 crores (FY26)
p. 3
“We've delivered record revenue of INR 550 crores, which is a Y-o-Y growth of 10.5% and a record EBITDA of INR 71.9 crores, with gross margin improving to highest in our history at 13.2%.”
Jigar Mehta, page 3 of the filed PDF · View the filing
Gross margin: 13.2% (FY26)
p. 3
“We've delivered record revenue of INR 550 crores, which is a Y-o-Y growth of 10.5% and a record EBITDA of INR 71.9 crores, with gross margin improving to highest in our history at 13.2%.”
Jigar Mehta, page 3 of the filed PDF · View the filing
PAT growth: 72.3% (FY26 Y-o-Y)
p. 3
“In absolute terms, EBITDA grew 60.9% and PAT grew 72.3% Y-o-Y, reflecting the strength of execution and the quality of our earnings.”
Jigar Mehta, page 3 of the filed PDF · View the filing
Operating cash flow and net cash: INR 127.3 crores (FY26)
p. 3
“This has also translated to strong cash flows, with Operating cash flows and net cash now increasing to INR 127.3 crores, the highest in our history.”
Jigar Mehta, page 3 of the filed PDF · View the filing
Revenue CAGR: 15.3% (last four years)
p. 3
“we have delivered a revenue CAGR of 15.3% and an EBITDA CAGR of 35.4% in this period, while keeping headcount largely stable at around 2,500 employees.”
Jigar Mehta, page 3 of the filed PDF · View the filing
Headcount: 2,485 employees (as of March 31, 2026)
p. 4
“Our final headcount as of March 31, 2026, was 2,485 employees, who are based across India, Europe and North America, which is predominantly the U.S. and Canada for us.”
Jigar Mehta, page 4 of the filed PDF · View the filing
Q4 revenue: INR 139 crores (Q4 FY26)
p. 4
“In Q4, our revenue continued momentum. It was the highest at INR 139 crores, delivering a 6.9% Y-o-Y growth, while EBITDA margins were at 11.2%.”
Jigar Mehta, page 4 of the filed PDF · View the filing
Top 25 customer revenue share: 88% (FY26)
p. 4
“Our top 25 customers continue to grow at a steady pace and now account for 88% of our revenues, reflecting strong concentration around strategic clients and increasing relevance within their engineering and R&D programs.”
Jigar Mehta, page 4 of the filed PDF · View the filing
Attrition: 14.85% (FY26)
p. 4
“We were at 14.85% for the last financial year.”
Jigar Mehta, page 4 of the filed PDF · View the filing
Dividend: INR 8 per share (FY26)
p. 5
“we the Board, have looked at a capital allocation budget as well and recommended an increase in the dividend to INR 8 per share.”
Jigar Mehta, page 5 of the filed PDF · View the filing
Transportation vertical revenue growth: de-growth of 1% (FY26)
p. 8
“our transportation vertical, which comprises of both automotive and rail, saw revenue de-growth of 1%.”
Jigar Mehta, page 8 of the filed PDF · View the filing
Revenue split by geography: 70% North America, 30% Europe (FY26)
p. 8
“If you look at our revenues, about 70% comes from North America and 30% comes from Europe.”
Jigar Mehta, page 8 of the filed PDF · View the filing
Revenue per employee: close to INR 22 lakhs (current)
p. 13
“If you look at revenue per person, it is now almost close to INR 22 lakhs for us, compared to INR8 lakhs- INR 9 lakhs four years ago.”
Jigar Mehta, page 13 of the filed PDF · View the filing
Employees outside India: almost 125 employees (current)
p. 12
“We have almost 125 employees outside India.”
Jigar Mehta, page 12 of the filed PDF · View the filing
Active clients: 75 (current)
p. 10
“if I had to give you a directional number, I would say 95% to 98% will come from existing clients, as per the budget from the 75 active clients that we have.”
Jigar Mehta, page 10 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — double-digit · FY27
stated firmly by Jigar Mehta
p. 5
“We believe we have everything in front of us today to deliver double-digit EBITDA and revenue growth.”
Jigar Mehta, page 5 of the filed PDF · View the filing
Revenue and EBITDA growth — double-digit
stated firmly by Jigar Mehta
p. 5
“we remain comfortable reiterating our guidance for sustained double-digit revenue and EBITDA growth.”
Jigar Mehta, page 5 of the filed PDF · View the filing
Capex — close to about INR 25 crores · next two years
stated firmly by Jigar Mehta
p. 18
“So, on the capex side, we would be doing, in the next two years, close to about INR 25 crores, just for existing clients, and this is more for just setting up the labs.”
Jigar Mehta, page 18 of the filed PDF · View the filing
Embedded/SDV revenue contribution — 18% to 30% of revenues · next couple of years
stated as an aspiration by Jigar Mehta
p. 18
“While we keep investing in embedded it will contribute about between 18% to 30% of our revenues in the next couple of years.”
Jigar Mehta, page 18 of the filed PDF · View the filing
Employees outside India — 200 to 300 · next few years
stated as an aspiration by Jigar Mehta
p. 12
“We'll take that up to 200 to 300 in the next few years.”
Jigar Mehta, page 12 of the filed PDF · View the filing
Client count — 50 · next couple of quarters
stated as an aspiration by Jigar Mehta
p. 16
“we have gone from 250 customers down to 75, which potentially will go down to 50 in the next couple of quarters, as I've shared before.”
Jigar Mehta, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said AI tools like Claude have not affected engineering services companies so far, distinguishing Onward from IT and BPO companies.
Answered by Jigar Mehta
Asked by Burramsetty Suresh: Will Anthropic Claude and AI developments affect Onward's business?
p. 6
“It does not affect engineering companies as of now. But if it does in the next few quarters, we'll definitely share more information with you.”
Jigar Mehta, page 6 of the filed PDF · View the filing
Management said the Board is actively considering it and finds the price attractive.
Answered by Jigar Mehta
Asked by Madhur Rathi: Given large net cash relative to market cap, why not do a share buyback?
p. 7
“It's something the Board has been actively considering, and definitely, the price is very attractive, both for the company and for all the investors.”
Jigar Mehta, page 7 of the filed PDF · View the filing
Management attributed the decline to exiting Tier-1 and Tier-2 clients and a slowdown in the automotive sector, but said momentum is improving.
Answered by Jigar Mehta
Asked by Hitaindra Pradhan: Why did the transportation and auto segment de-grow this year, and when can a turnaround be expected?
p. 8
“our transportation vertical, which comprises of both automotive and rail, saw revenue de-growth of 1%. This was due to two main factors.”
Jigar Mehta, page 8 of the filed PDF · View the filing
Management said the margin levels are sustainable and could improve further due to operating leverage and stable G&A costs.
Answered by Jigar Mehta
Asked by Mehul Panjuani: How sustainable are FY26 margins and what are the levers for FY27?
p. 9
“we do believe that these numbers are sustainable, and not only sustainable-I think we can do much better job as well.”
Jigar Mehta, page 9 of the filed PDF · View the filing
Management said they are investing in the right opportunities and transitioning toward becoming a digital/AI-ready engineering company while maintaining stated guidance.
Answered by Jigar Mehta
Asked by Aditya Jhawar: Should Onward be more aggressive in building AI capabilities and raising growth ambitions rather than sticking to 10-12% guidance?
p. 14
“We are not shying away from investments. It's more about making sure we invest in the right opportunity that are in front of us and we are already doing that.”
Jigar Mehta, page 14 of the filed PDF · View the filing
Management denied giving different guidance elsewhere and reiterated that double-digit means 10% plus.
Answered by Jigar Mehta
Asked by Arun Jhawar: Why does the company give specific revenue growth guidance at other investor conferences but not on this earnings call?
p. 15
“That's not accurate. Double-digit means 10% plus. So I don't believe anybody from my team would say any other number.”
Jigar Mehta, page 15 of the filed PDF · View the filing
Management explained the company reduced its client base from 250 to 75 customers as part of a focus strategy and that exits are now complete.
Answered by Jigar Mehta
Asked by Madhur Rathi: Why has revenue growth in the industrial equipment and heavy machinery segment lagged peers despite favorable end-market trends?
p. 16
“Over the last four years, Onward Technologies has gone from 250 customers to 75 customers.”
Jigar Mehta, page 16 of the filed PDF · View the filing
Management said Onward is not currently present in SDVs but plans to enter that area, while it already has some predictive maintenance capabilities.
Answered by Jigar Mehta
Asked by Madhur Rathi: Does Onward operate in software-defined vehicles and predictive maintenance areas?
p. 18
“today Onward Technologies is not present in this area. It's absolutely where we would like to go.”
Jigar Mehta, page 18 of the filed PDF · View the filing
Risks flagged
Overall slowdown in the automotive sector affecting transportation vertical growth
p. 8
“That did not happen at the speed that we would have liked, due to the overall slowdown in the automotive sector and several other factors.”
Jigar Mehta, page 8 of the filed PDF · View the filing
Potential future disruption from AI tools, though not yet observed
p. 7
“Today, it is AI. Tomorrow, it could be some other technology disruption.”
Jigar Mehta, page 7 of the filed PDF · View the filing
Customers reducing outsourcing budgets by using AI for routine tasks
p. 12
“They'll continue to reduce the number of hours on those projects and either move that work inhouse or do it directly with Microsoft, Anthropic, or platforms like ChatGPT.”
Jigar Mehta, page 12 of the filed PDF · View the filing
Company being late to enter software-defined vehicles space
p. 18
“We are very late again; we want to play catch up. It's I think about 2 or 3 years late, but we are going to play catch-up.”
Jigar Mehta, page 18 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.