Onward Technologies Limited (ONWARDTEC) AI Stock Analysis

• Market Cap: ₹7.28B
• Dividend Yield: 1.84%
• Average Volume (3M): 2.12K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 1.89
• Revenue Growth: 10.49%
• EPS Growth: 69.49%
• Country: IN
• Employees: 2,529
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 4.50
• Shares Outstanding: 22,742,970
• 10 Day Avg. Volume: 1,578
• 30 Day Avg. Volume: 2,118
• PEG Ratio: -1.05
• Price to Book (P/B): 2.64
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 20.29
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹361.00 ▲(17.49% Upside)

Onward Technologies Limited's overall stock score is primarily influenced by its strong financial performance, which is offset by bearish technical indicators. The valuation is reasonable, but the lack of earnings call data and corporate events limits additional insights. The stock's current technical weakness suggests caution for potential investors.

Positive Factors

Consistent Revenue Growth

Sustained top-line expansion over multiple years indicates durable demand for Onward's engineering and digital services. A multi-year revenue uptrend supports reinvestment in R&D and talent, enables long-term client engagements, and provides a stable base for margin recovery and strategic growth initiatives.

Healthy Balance Sheet

A strong equity base and low leverage give the company financial flexibility to fund organic growth, absorb downturns, and pursue selective M&A without stressing liquidity. This structural strength reduces solvency risk and supports sustained investment in product engineering capabilities.

Positive Operating Cash Flow

Consistent positive operating cash generation and improving free cash flow provide a reliable source to fund working capital, capex, dividends and debt servicing. Durable cash conversion underpins self-funded growth and reduces reliance on external financing over the medium term.

Negative Factors

Declining Net Profit Margin

A recent downward trend and volatility in net margins suggest pressure on profitability from pricing, cost mix, or operational inefficiencies. Persisting margin deterioration would erode return on capital, limit reinvestment capacity and weaken the long-term earnings power despite revenue growth.

Volatile Return on Equity

Irregular ROE indicates inconsistent conversion of equity into profit, complicating capital-allocation decisions. Volatile profitability can mask cyclical or one-off effects, making it harder to forecast sustainable returns and potentially reducing investor confidence in long-term performance.

Exposure to Cyclical End Markets

Significant exposure to automotive and industrial equipment markets creates sensitivity to economic cycles and capex timing. During downturns, client project deferrals or reduced R&D spend can materially affect revenues and utilization, increasing business volatility over multi-quarter horizons.

Onward Technologies Limited Business Overview & Revenue Model

Company Description

Onward Technologies Limited provides mechanical engineering design and IT consulting services in India and internationally. The company offers digital transformation, embedded systems, engineering technology, data analytics, artificial intelligence, and machine learning products and services. It also offers digital engineering, embedded electronics, mechanical engineering, and enterprise IT related services. The company serves automotive, manufacturing, e-commerce, semiconductor, ICT, and medical technology industries. The company was incorporated in 1991 and is based in Mumbai, India. Onward Technologies Limited is a subsidiary of Onward Network Technologies Private Limited.

How the Company Makes Money

Onward Technologies Limited generates revenue through multiple channels, primarily by providing engineering and IT services to clients in various industries. The company charges fees for its consulting, product development, and software services, often structured as project-based contracts or retainer agreements. Key revenue streams include long-term partnerships with major corporations in sectors like automotive and aerospace, which provide a steady flow of income. Additionally, ONWARDTEC may also earn revenue from licensing proprietary software solutions and offering maintenance and support services. Strategic alliances with technology leaders further enhance its service offerings, allowing the company to tap into new markets and increase its earnings potential.

Onward Technologies Limited Financial Statement Overview

Summary

Onward Technologies Limited shows strong financial health with consistent revenue growth and efficient cost management. However, fluctuations in net profit margin and return on equity indicate challenges in maintaining profitability.

Income Statement

Onward Technologies Limited has demonstrated robust revenue growth over the years, with a consistent increase in total revenue from 2020 to 2025. The gross profit margin is healthy, reflecting efficient cost management. However, there is a noticeable fluctuation in net profit margin, with a decline in recent years, indicating potential challenges in maintaining profitability.

Balance Sheet

The company maintains a strong equity position, with a healthy equity ratio indicating stability. The debt-to-equity ratio is low, suggesting manageable leverage and financial health. However, the return on equity has shown some volatility, reflecting fluctuations in profitability relative to equity.

Cash Flow

Operating cash flow remains positive, allowing for reinvestment and debt servicing. Despite a decline in free cash flow in some years, the overall trend shows improvement. The operating cash flow to net income ratio suggests effective cash management relative to reported earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.07B	4.91B	4.72B	4.41B	3.07B	2.40B
Gross Profit	674.97M	608.58M	1.12B	420.41M	500.18M	330.29M
EBITDA	552.13M	446.96M	594.73M	326.77M	429.40M	225.81M
Net Income	327.21M	270.78M	339.18M	114.80M	236.84M	73.38M
Balance Sheet
Total Assets	0.00	3.14B	2.87B	2.42B	2.29B	1.38B
Cash, Cash Equivalents and Short-Term Investments	913.46M	933.62M	853.73M	482.01M	495.15M	285.90M
Total Debt	0.00	321.60M	282.72M	167.26M	186.98M	250.99M
Total Liabilities	-2.24B	894.54M	798.09M	683.84M	662.31M	632.00M
Stockholders Equity	2.24B	2.24B	2.07B	1.74B	1.63B	744.81M
Cash Flow
Free Cash Flow	0.00	291.46M	603.32M	-14.55M	-262.84M	196.00M
Operating Cash Flow	0.00	315.23M	623.49M	57.46M	-39.29M	329.62M
Investing Cash Flow	0.00	-171.77M	-623.38M	60.09M	-315.96M	-98.70M
Financing Cash Flow	0.00	-212.19M	-161.66M	-142.14M	565.71M	-122.63M

Onward Technologies Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 307.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ONWARDTEC, the sentiment is Positive. The current price of 307.25 is below the 20-day moving average (MA) of 311.30, above the 50-day MA of 294.31, and above the 200-day MA of 304.00, indicating a bullish trend. The MACD of 7.91 indicates Negative momentum. The RSI at 55.55 is Neutral, neither overbought nor oversold. The STOCH value of 60.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ONWARDTEC.

Onward Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFOBEAN	77 Outperform	₹21.02B	29.25	―	0.13%	14.57%	80.44%
MINDTECK	77 Outperform	₹7.01B	22.57	―	0.50%	0.23%	10.64%
VERTOZ	63 Neutral	₹4.82B	17.60	―	―	21.99%	-14.27%
ONWARDTEC	62 Neutral	₹7.28B	17.04	―	1.84%	10.49%	69.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INSPIRISYS	61 Neutral	₹3.38B	8.67	―	―	-1.07%	187.83%
SUBEXLTD	46 Neutral	₹5.59B	-106.31	―	―	-9.53%	96.99%

Onward Technologies Limited Corporate Events

Onward Technologies Posts Higher Q3 FY26 Revenue and Profit on Strong India and Overseas Demand

Onward Technologies Limited reported its unaudited consolidated financial results for the quarter and nine months ended 31 December 2025, with revenue from operations for the quarter rising to approximately ₹13,862 lakh and net profit reaching about ₹1,010 lakh. The Board approved these results along with a limited review report from its statutory auditors, noting continued growth driven by both Indian and international markets and delivering higher total comprehensive income year-on-year, underscoring the company’s improving profitability and operational momentum ahead of its full-year results.

Onward Technologies Publishes Q3 FY2025-26 Financial Results Extract in Newspapers

Onward Technologies Limited has notified the stock exchanges that it has published an extract of its financial results for the quarter ended December 31, 2025 in the Free Press Journal (English) and Navshakti (Marathi) on January 17, 2026. The company stated that these quarterly results, prepared in accordance with Indian Accounting Standards and duly reviewed and approved by its Board, are also available on its corporate website and on the websites of the stock exchanges, in line with disclosure requirements under the SEBI Listing Regulations.

Onward Technologies Posts Conference Call Audio on Website After Q3 Results

Onward Technologies Limited has notified the stock exchanges that the audio recording of its conference call held on January 16, 2026, following the announcement of financial results for the quarter ended December 31, 2025, has been made available on the company’s website. The disclosure, made in line with SEBI’s listing and disclosure regulations, underscores the company’s efforts to maintain transparency and provide investors and other stakeholders with accessible information on its quarterly performance and management commentary.

Onward Technologies Publishes Notice on Re‑lodged Share Transfer Under SEBI Norms

Onward Technologies Limited has notified the stock exchanges that a shareholder has re-lodged a request for transfer of shares, and that the company has published the requisite notice in newspapers pursuant to a recent Securities and Exchange Board of India circular dated July 2, 2025. The disclosure, made under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements, underscores the company’s compliance with updated share transfer norms and ensures transparency for investors and other capital-market stakeholders regarding pending share transfer documentation.