Onward Technologies trails IT peer median on Q2 operating margin
The consolidated quarter posted a 15.60% operating margin, with depreciation and interest reducing operating profit before tax.
Filed 16 Oct 2026, 12:14 IST · Onward Technologies Ltd (ONWARDTEC)
Key takeaways
- Onward Technologies' consolidated Q2FY27 operating margin was 15.60%, 2.16 percentage points below the 17.76% median for eight reported IT peers.
- Rs 4.76 cr of depreciation and Rs 0.69 cr of interest reduced Rs 26.54 cr of operating profit to Rs 22.12 cr of profit before tax.
- Net profit was Rs 16.77 cr after Rs 5.35 cr of tax, while other income contributed Rs 1.04 cr.
Price around the results
Q2FY27 revenue converted into a 15.60% operating margin
Onward Technologies reported consolidated revenue of Rs 170.18 cr and expenses of Rs 143.64 cr, leaving operating profit of Rs 26.54 cr. Its 15.60% operating margin was 2.16 percentage points below the 17.76% median among eight Information Technology peers that have reported the quarter.
Depreciation was the main reported deduction below operating profit
Depreciation of Rs 4.76 cr and interest of Rs 0.69 cr brought profit before tax down to Rs 22.12 cr from operating profit of Rs 26.54 cr. Other income was Rs 1.04 cr, so it did not offset those deductions sufficiently to lift pre-tax profit above operating profit. Tax of Rs 5.35 cr at a 24.18% tax rate resulted in net profit of Rs 16.77 cr.
No sequential or year-on-year direction is available in the reported quarter
The available quarter does not provide a sequential or year-on-year comparison, so the margin direction cannot be assessed from this release. The clearest external reference is the gap to the reported peer median, with Onward Technologies ranking third from the bottom among the eight peers covered.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹170 cr |
| Other income | ₹1 cr |
| Expenses | ₹144 cr |
| Operating profit | ₹27 cr |
| Operating margin (%) | 15.60% |
| Interest | ₹1 cr |
| Depreciation | ₹5 cr |
| Profit before tax | ₹22 cr |
| Tax | ₹5 cr |
| Net profit | ₹17 cr |
| EPS (₹) | ₹7.65 |
Operating margin of 15.60% compares with a Information Technology sector median of 17.76% across 8 peers that have reported Q2FY27.
What to watch
- Whether operating margin moves above 15.60% and narrows the 2.16-percentage-point gap to the 17.76% peer median.
- Whether depreciation remains near Rs 4.76 cr as operating profit converts into profit before tax.
- Whether the tax rate stays near 24.18%.