Onward Technologies Ltd (ONWARDTEC) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, you have been connected for Onward Technologies conference call. The call will begin shortly, requested to please stay connected. Reminder to all the participant that you have been connected for Onward Technologies conference call. The call will begin shortly, requested to please stay connected. Thank you.
Danish: Ladies and gentlemen, good day, and welcome to Onward Technologies Limited Q2 and H1 FY27 earnings conference call, hosted by Go India Advisors. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Love Gupta from Go India Advisors. Thank you, and over to you, Love.
Love Gupta (Go India Advisors): Thank you, Danish. Good afternoon, everybody, and welcome to Onward Technologies Limited's earnings conference call to discuss the Q2 and H1 FY27 results. We have on the call Mr. Jigar Mehta, Managing Director. We must remind you that the discussion on today's call may include certain forward-looking statements and therefore must be viewed in conjunction with the risks that the company may face. May I now request Mr. Jigar Mehta to take us through the company's business outlook and performance, subsequent to which we will open the floor for question and answers. Thank you, and over to you, sir.
Jigar Mehta (Onward Technologies Ltd): Thank you, Love. Good evening, everyone, and thank you for joining us today. I appreciate your continued interest in Onward Technologies, and I'm very pleased to share our Q2 and H1 FY27 performance. Q2 FY27 marks an important milestone in our transformation journey. We delivered our highest-ever quarterly revenue at 170 crores, representing a 22.4% YoY growth and 13.2% sequential growth. Total income for the quarter was 171.2 crores, while EBITDA grew 33.2% year-on-year to 26.5 crores, with margins expanding to all-time high at 15.6%. PAT increased also to 41.2% YoY, to 16.8 crores. These results reflect the operating leverage we continue to build into our businesses. What is particularly encouraging for me is the quality of the growth. It was driven by deeper engagement with strategic customers, improved utilization, higher productivity, and strong offshore execution. This was I want to take a moment to congratulate my entire team for a very disciplined execution and operational management. Our focus as organization continues remains firmly on delivery-led growth and converting execution excellence into sustaining sustainable profitability. The US and Europe regions continue to be our primary growth engines. We also increased the number of customers billing over $1 million annually from 16 to 18, demonstrating our ability to expand wallet share within our existing clients. A major highlight this quarter was the renewal of a three-year digital engineering engagement valued at approximately 44.5 crores with a global construction and mining equipment leader. The contract value increased by over 70% compared to the previous term, reflecting a customer's confidence in our ability to deliver quality and long-term partnership approach. This is very important because the earlier contract, while was also sizable, we were getting the while we had a statement of work and the contract, we were getting POs on a six-monthly or annual basis. This time the customer has awarded us the entire contract, and we are, as we speak, we are participating and bidding for number of large RFPs in our existing customer. We're also seeing a lot of encouraging opportunities across US and Europe for digital engineering, AI-led transformation program programs, data center infrastructure engineering, and particularly in areas such as power management, cooling systems, and intelligent industrial platforms. We will be very happy to share more in the subsequent quarters. At the same time, we continue to invest big and hiring a lot of people across all our four delivery centers in India, which is in Pune, Chennai, Bangalore, and Hyderabad, to get ready for 2027. Based on the strong half-year performance and the visibility we see across our customer portfolio, we have increased our FY27 outlook. We now expect revenue growth of 15% to 18% for FY27 and an EBITDA margin in the range of 13.8% to 14.3%. While we are obviously very pleased with the momentum, our focus remains on long-term value creation. We continue to strengthen our delivery engine, improve revenue productivity, and expand offshore leverage, and, most importantly, deepen our engagement with our existing customers across all the three verticals. We believe we believe Q2 performance demonstrates that strategy that we've been sharing with you over the last couple of years and now it's finally working. The foundation we have built is now translating into stronger growth, expanding profitability,
Jigar Mehta (Onward Technologies Ltd): created business resilience. We remain confident in our ability to sustain sustainably and create long-term value for all our, all our stakeholders. Thank you, once again, for joining us today. With that, let me hand over the call back to the operator, and we look forward to your questions. Thank you, again.
Danish: Thank you so much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. First question comes from the line of Jitendra Pradhan with Maximal Capital. Please go ahead. Jitendra, you may please proceed ahead with the question.
Jitendra Pradhan (Maximal Capital): Yeah. Yeah. Hi guys, congrats on the good quarter. So my question is related to, you know, the first one is related to the, you know, the revenue guidance that you provided. I mean, can you just dig out, you know, double click on what is happening in the segment-wise and where do you see more RFQs or you know that order buildup? And what gives you that confidence that you know we can sustain this revised you know growth guidance?
Jigar Mehta (Onward Technologies Ltd): So, we upgraded our guidance based on our our H1 our strong H1 execution and and the improved visibility that we have from our existing customers across, especially across North America. It's the momentum that we have with the customers, the hiring that we have done in the last six months, we've onboarded net about 430 plus employees, and the RFQs that we are participating in, especially with the large demand in the AI data center space. So, most of our manufacturing customers in the industrial segment have been growing very rapidly. There is a huge talent need which, across US and offshore, and we have been building up this over the last many years, and now we are finally seeing the the clear visibility towards that. And hence, we feel comfortable giving 15 to 18% revenue guidance.
Jitendra Pradhan (Maximal Capital): Understood. Understood. And on this DAI DC opportunity, can you just give us some color on, you know, what exactly that we are doing, because if my understanding is correct, I mean usually the system integrators kind of you know, do the kind of services that probably we are doing. So, what is our like, you know, value addition of what kind of project that we do there? I mean if you can give us some color and what is the scope of that opportunity, right?
Jigar Mehta (Onward Technologies Ltd): So, we view I've shared this earlier, but we view AI both as a productivity enabler and a growth opportunity, right? So, one is we are embedding AI into our engineering workflows, you know, in our software development and delivery processes. And while we're also helping our customers accelerate their own digital engineering initiatives. And we have the skill sets, and so we have now almost 3,000-plus people in our team, employees, and all of them are focusing on few customers, understand the customer's products, which eventually are going into building those large data centers, right? So, whether it is power generation, cooling systems, and that's where we have the skills already in-house. Our employees, engineers are well trained from a domain perspective. And that's where we see the advantage in terms of when we participate in the RFQs.
Jitendra Pradhan (Maximal Capital): And these are US customers or or India like India plus US customers?
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