Onward Technologies Ltd Management Discussions

Macro Economy Review Global Economy

In 2024, the global economy navigated a complex and evolving landscape shaped by shifting geopolitical dynamics and changing market trends. According to International Monetary Fund April 2025 report, global economy grew by 3.3% year-over-year, reflecting steady but modest expansion. The U.S. economy remained strong, supported by a tight labour market and resilient domestic demand, whereas the Eurozone struggled with structural challenges, particularly in energy-intensive sectors. Advanced economies witnessed a growth rate of 1.8% YoY, while Emerging Market and Developing Economies (EMDEs) continued to show resilience with 4.3% YoY growth. India and Southeast Asia emerged as key growth engines, fuelled by robust domestic consumption, digital innovation and infrastructure investments. Meanwhile, Chinas recovery was tempered by headwinds from a property sector downturn and subdued external demand.

? Global Economy ? Advanced Economy

? Emerging Market & Developing Economies

The global economic outlook for 2025 presents a thoughtful mix of caution and hope. As trade relationships evolve and policies shift, navigating the landscape has become more complex - but there are clear signs of resilience. Advanced economies are gradually bringing inflation under control, while emerging markets, particularly China and India, continue to chart a stable growth path. The return of U.S. tariffs and the resulting responses from other nations have added pressure to global trade, driving up costs and making both consumers and investors more cautious. Even so, the overall direction looks encouraging. The world economy is expected to grow by 2.8% in 2025 and 3.0% in 2026, supported by ongoing innovation, smart policy decisions and stronger global collaboration. The accelerating shift toward clean

energy is also becoming a powerful driver of more inclusive, long-term growth across the country².

Indian Economy

India remains one of the fastest-growing economies globally, driven by its favourable demographics, strong domestic consumption, ongoing structural reforms, robust GST collections and advancements in manufacturing, infrastructure, technology and digital initiatives. Despite this momentum, economic growth moderated in FY 2024-25 due to both global and domestic headwinds. According to the Ministry of Statistics and Programme Implementation (MOSPI), GDP growth slowed to 6.5% YoY in FY 2024-25, down from 9.2% in FY 2023-24. The slowdown reflects challenges such as weak manufacturing output, persistent food inflation, tepid urban consumption, a widening trade deficit and muted private investment. However, resilience in the services sector, higher infrastructure spending and government-led digital and financial inclusion initiatives helped sustain a stable growth trajectory. Trade diversification efforts and new free trade agreements also played a role in mitigating external risks.

Inflation remained a key concern during the year, driven by global supply disruptions and volatile commodity prices. To support growth, the RBIs Monetary Policy Committee cut the repo rate twice in early 2025, reducing it by 50 basis points to 6% while maintaining an accommodative stance. CPI inflation averaged 4.9% in FY 2024-25, down from 5.4% in the previous year and is projected to ease further to 4.0% in FY 2025-26, signalling improved price stability going forward. Indias economic outlook remains positive, with GDP projected to grow by 6.5% in FY 2025-26, matching the pace of FY 2024-25 and outpacing the global average. This sustained growth is supported by a youthful population and continued government

focus on strengthening digital, financial and physical infrastructure⁴.

Industry Overview

Indian Information Technology (IT) Sector:

Indias IT industry experienced meaningful growth and evolution in FY 2024-25, led by the rapid rise of new technologies and a sharp focus on innovation. As businesses around the world searched for more agile and future-ready digital solutions, India emerged as a dependable partner - trusted not just for its scale, but for its ability to deliver complex, forward-looking outcomes. A big part ofthis story is the growing influence of Global Capability Centers (GCCs) and multinational companies, which now contribute nearly half of the countrys total tech revenue. The number of GCCs has risen impressively from about 1,285 in FY 2018-19 to over 1,750 today, providing meaningful careers to more than 1.9 million people across engineering, digital and R&D roles. These centres are no longer just support hubs—theyre at the heart of breakthrough innovation happening right here in India.

Whats powering this momentum isnt just the sheer numbers — its the shift toward smarter, high-impact work. Indias IT sector is leaning into the future, with widespread adoption of generative AI, cloud-native technologies and advanced cybersecurity shaping how services are delivered. At the same time, theres a rising appetite for data engineering and digital product development, signalling deeper digital maturity. As India doubles down on regional manufacturing, digital engineering and building robust infrastructure, its tech industry is helping define where global technology is headed — combining cost efficiency with innovation, resilience and world-class expertise. The IT industry comprises the following segments.

Engineering, Research and Development (ER&D):

The ER&D segment is growing at 7%, fuelled by the increasing intensity of ER&D adoption across various sectors. This growth is driven by a strong focus on innovation, the shift toward regional manufacturing under the China-plus-one strategy and the growing emphasis on digital engineering, particularly with the rise of AI. In terms of domain, transportation and sustainability led the growth of this segment.

Business Process Management (BPM): The segment experienced a 4.4% YoY growth, driven by broad-based expansion supported by optimism in the financial market and rising demand for tech and AI-led solutions. Previous investments in developing specialised capabilities in data monetisation, leveraging cloud- based AI and analytics, platform-based services and automation are now starting to yield significant results across the BPM sector.

? Domestic ? Exports

In FY 2024-25, Indias information technology sector experienced strong growth, driven by the adoption of AI-led models, cloud-native development and increasing demand for cybersecurity. Organisations modernised their digital infrastructure, embraced GenAI to improve productivity and innovation and leveraged predictive analytics to enhance efficiency and decision-making. The widespread use of cloud- native technologies like Kubernetes enabled scalable, cost-effective digital solutions, while data engineering gained momentum, particularly in Banking, Financial Services and Insurance (BFSI) and healthcare sectors, due to the rising need for real-time data, AI integration and streamlined data governance.

This technological shift also led to a sharp increase in deal activity, with cloud service deals growing 1.8 times and cybersecurity deals rising sixfold in 2024. India is strengthening its global position in cybersecurity, which is backed by skilled talent, a dynamic startup ecosystem and a rising demand for advanced security solutions. As cyber threats become more frequent and complex, Indias IT sector is not only adapting to global trends but also playing a key role in shaping them. With its focus on AI, cloud, data and security, the industry is well-positioned for sustained growth and leadership in the evolving digital landscape.

Digital Engineering

Digital engineering is at the heart of modern innovation, transforming industries and redefining tech interactions. It revolutionises daily life, from AI assistants and smart homes to telemedicine and remote work. Organisations increasingly leverage these advancements as the digital revolution accelerates to overcome challenges and seize new opportunities.

Despite economic challenges, the total spending on Engineering Research & Development (ER&D) stayed strong at $ 2.21 trillion. The total ER&D spend is expected to reach $ 3.0 trillion by 2027, growing at a CAGR of 8.4%. ER&D investment in Europe experienced significant growth of 9.5% in 2023 — the highest since 2020 — driven by key sectors such as Aerospace & Defence, Pharma, Industrial and Automotive. However, North America, historically a leader in ER&D, saw slower growth due to inflation control measures and geopolitical risks.

? Digital Engg. Spend Legacy Engg. Spend All figures in $ Bn

The increasing investment in ER&D reflects the critical role of Artificial Intelligence in driving innovation and efficiency across industries, further accelerating the global shift towards technology-enabled solutions. Artificial Intelligence (AI) continues to be a transformative force across industries, reshaping economies and accelerating technological advancements. China accounted for over 10% of the global ER&D spending, with the telecommunications, semiconductor and automotive industries contributing nearly half of its total investment. In the Asia-Pacific (APAC) region, companies are prioritising digital technologies such as Artificial Intelligence (AI)/Machine Learning (ML), robotics, additive manufacturing, automation tools, 5G and smart manufacturing to enhance efficiency and innovation. Generative AI has rapidly gained traction for its potential to drive cost efficiencies and streamline business processes.

This shift towards digital technologies is transforming traditional industries and fueling the rapid expansion of Hi-Tech verticals, which are outpacing manufacturing and service-led sectors in shaping the future of digital engineering. Hi-tech verticals, such as semiconductors, AI and ML, cloud computing, etc., are expanding faster than traditional service and manufacturing-led industries, shaping the future of digital engineering. By 2027, Hi-Tech verticals are expected to represent approximately 55% of the total Digital Engineering (DE) spending, further cementing their dominance in the

digital economy. As organisations continue to embrace digital transformation, the role of Digital Engineering in driving innovation, efficiency and economic growth will only become more critical in the years ahead.

Digital Transformation

India is at a pivotal juncture where AI-driven innovation, digital infrastructure and a future-ready workforce will shape its position as a global leader in the digital economy. The Union Budget FY 2025-26 goes beyond a fiscal roadmap, serving as a strategic blueprint for a stronger Digital India, focussing on technology-led development, AI-driven modernisation and inclusive economic growth. The government has planned a Centre of Excellence in Artificial Intelligence for education is proposed to be established with a total allocation of 500 crore. The CY 2024 marked a defining moment in the evolution of artificial intelligence (AI), with the technology transitioning from experimental use to meaningful enterprise adoption. While CY 2023 was characterised by initial explorations into large language models (LLMs), text-to-image generation and techniques to reduce AI hallucinations, CY 2024 witnessed a decisive pivot towards practical implementation and domain-specific AI solutions.

This transformation was driven by parallel developments in two key areas: the democratisation of AI and the convergence of AI with enterprise-grade technologies. As a result, the focus shifted from showcasing raw capabilities to achieving greater reliability, efficiency and contextual accuracy. Improvements in model reasoning, factual consistency and context handling played a central role in enabling AI systems to deliver more dependable and relevant outputs. In CY 2024, AI technologies advanced with the rise of Retrieval-Augmented Generation (RAG), knowledge graphs, domain-specific small models and integrated platforms that combined cloud, data and GenAI for more efficient and context-aware applications.

There was also a growing emphasis on production- ready AI utilisation as enterprises pushed beyond isolated proof-of-concepts (PoCs) to full-scale implementations. This shift was supported by integrated pipelines combining data engineering, AI model development and cloud-based orchestration. One of the most significant developments in CY 2024 was the emergence of agentic AI - systems capable of autonomous decision-making and self-management. Organisations began adapting their generative AI offerings to incorporate these intelligent agents, signalling the next phase of AI evolution.

GenAI

Enterprises advanced from isolated AI pilots to structured, outcome-focussed GenAI initiatives in CY 2024, with a 3.7x growth in activity. GenAI and data engineering became integral to broader digital transformation efforts, despite ongoing challenges.

Edge AI although slower in adoption, showed promise for asynchronous and low-latency applications once cloud-edge integration challenges are addressed.

Sovereign AI

It involves leveraging national data and infrastructure to build AI systems, gained momentum for security and governance purposes.

Quantum AI and

Neuromorphic AI

It also gained traction, driven by the need for highly complex and energy-efficient computation models.

Edge AI

Embodied AI

It refers to intelligent physical agents that can operate independently or collaboratively with humans, started to see early adoption.

About 5% of enterprise technology budgets were allocated to AI and GenAI initiatives, amounting to over $ 15 billion in deal value in CY 2024. These investments signalled a broad consensus on AIs potential to drive cost optimisation and digital transformation. Across the industry, there was a 3.2x increase in AI-related activity in CY 2024 compared to CY 2023. Around 90% of this activity was driven by GenAI, reflecting its central role in enterprise strategies. The AI development approach shifted from internal, siloed projects to long-term, partnership-led innovation, with companies co-creating solutions alongside technology vendors, academia and even their clients. This shift enabled faster go-to-market strategies and more comprehensive product development, as well as strengthened cloud and data integration across AI portfolios.

Organisations also focussed on consolidating their innovation efforts. Existing digital Centres of Excellence (CoEs) were expanded into AI and innovation hubs designed to support end-to-end solutions and scale over time. These platforms were built to accommodate future developments in agentic AI and custom microvertical solutions. In CY 2024, workforce skilling became pivotal to AI-led transformation, with companies investing in advanced AI training to build enterprise-

grade models, enable data-to-insight pipelines and drive certified adoption at scale. Moreover, in CY 2024, AI — especially generative AI — evolved from experimentation to a core driver of digital transformation as enterprises embraced strategic partnerships, advanced skilling and scalable platforms to enable widespread business impact.

Industry Outlook

Indias IT industry is stepping confidently into the future, backed by strong global demand for digital solutions and the countrys continued leadership as a top outsourcing destination. In 2025, the focus is shifting from traditional service delivery to driving innovation and creating lasting business value. A large share of digital spending is now directed towards emerging technologies like artificial intelligence and machine learning (AI/ML), including Generative AI, cybersecurity, cloud and edge computing, big data, analytics and automation. Together, these areas account for 60-80% of overall digital investments. Among them, AI and GenAI are seeing remarkable traction, with spending expected to grow by around 30%, as more organisations begin applying these tools across different industries and workflows.

Cloud and data technologies continue to serve as the backbone of digital transformation, helping businesses modernise their operations and adapt more quickly to changing needs. Meanwhile, spending on networking technologies is expected to ease, reflecting a broader shift in priorities. Software investments are likely to remain stable, while hardware growth may slow after a particularly strong 2024. Globally, IT services spending is projected to grow by 5.1% in 2025, fuelled by rising interest in cloud-native platforms, managed services and intelligent automation. In this changing landscape, India remains a preferred partner for global technology needs — thanks to its skilled talent, reliable delivery models and growing expertise in cutting-edge digital solutions. Looking ahead, the Indian IT industry is well-positioned to play an even more strategic role — helping businesses around the world unlock value through technology, reimagine processes and prepare for whats next⁷.

Company Overview Company Background

Onward Technologies Limited (hereafter referred to as Onward Technologies or the Company) is a leading provider of digital and engineering research and development (ER&D) services for global original equipment manufacturers (OEMs) in Industrial Equipment and Heavy Machinery , Transportation and Mobility and Healthcare and Life Sciences.

The Company has grown significantly in its three key sectors: Industrial Equipment & Heavy Machinery, which makes up 57% of total revenue; Transportation & Mobility, contributing 38% and Healthcare, accounting for 4%. The Company serves clients in the United States, the United Kingdom, Germany, the Netherlands, Canada and India. The Companys Registered Office is in Worli, Mumbai, with sales offices in Chicago, Detroit, London, Frankfurt and Toronto. The Company also has development and design centres in Pune, Chennai, Bengaluru and Hyderabad, supporting businesses worldwide.

The Company has a highly skilled team that provides expert consulting and valuable services to multinational corporations in focused industries. The Company had a global workforce of over 2,581 as of March 31,2025.

Key Business Strategies and Developments

Building high-margin Line of Business (LOB) segments

The Company has an experienced and focussed management team in focussed verticals. The Company earns revenue from two main verticals: industrial

equipment & heavy machinery (IEHM) transportation & mobility, including automotive and rail transportation. The Company plans to use its digital skills in all industries, focussing on complex and high-margin projects in ER&D and digital transformation. The Company aims to build strong partnerships and maintain steady growth with the help of continuous investments in upgrading its hardware engineering capabilities including labs, infrastructure, etc . The Company focusses on working with North American and European companies to support their strategic goals of innovation, new product development and being extremely cost competitive, leveraging India advantage.

Strengthening Client Relationships

The Company has built strong relationships with respected clients, leading to repeat orders. The Company generates a significant portion of its revenue from Global 2000 clients. Onward Technologies focusses on securing long-term contracts and recurring revenue to strengthen its financial stability. The Companys focus on larger, strategically significant clients has created a strong foundation for long-term business stability. The Company has client base of 80, adding new clients through Master Service Agreements (MSA). The company believes that more than 50% of these clients have potential to generate $10 million/ year in revenues.

Talent Enhancement

The Company remains dedicated to hiring top-tier digital specialists. The Company continues to prioritise human resource policies and benefits, ensuring growth opportunities align with industry standards to support career development. The Company maintained a total headcount of 2,581 skilled personnel within its organisation during FY 2024-25. The Company is committed to strategic investments in hiring Subject Matter Experts (SMEs) with deep domain knowledge across its three core verticals: Industrial Equipment & Heavy Machinery (IE&HM), Transportation & Mobility (T&M) and Healthcare & Life Sciences (HCLS).

Profitability Growth and Commitment to Shareholders

Onward Technologies has built on its specialised capabilities in Digital and Engineering R&D services by realigning its organisational structure around a streamlined 3x3 model. This model focusses on key verticals, including Industrial Equipment & Heavy Machinery, Transportation & Mobility and Healthcare & Life Sciences. These verticals are supported by core competencies in Mechanical, Embedded and Digital Engineering. The Companys strategic realignment, combined with a deliberate shift towards higher- margin offerings and a strengthened global delivery infrastructure, has significantly improved both operational efficiency and offshore revenue generation. In the FY 2024-25, Onward Technologies delivered record revenue amounting to 491.3 crore, alongside a robust EBITDA margin of 9.1%. It also maintained a strong liquidity position, with reserves totalling 104.9 crore. Additionally, the Companys consistent dividend payouts demonstrate its clear commitment to sustained performance, financial discipline and longterm value creation for shareholders.

Financial Overview Consolidated Financial Performance

For FY 2024-25,, the Company reported a 4% increase in consolidated revenue from operations, reaching 49,131.61 lakhs as compared to 47,239.17 lakhs in FY 2023-24, reflecting consistent performance and steady growth across its subsidiaries and business units, with total revenue amounting to 49,852.92 lakhs. This topline growth, however, was accompanied by a 6% increase in both other expenses 6,650.17 lakhs and employee benefit expenses 38,011.83 lakhs, reflecting

the Companys continued investments in talent development and capability enhancement across its three core business verticals. As a result, operating profit moderated to 4,469.61 lakhs from 5,220.01 lakhs in the previous year, primarily due to higher payroll costs and sustained training-related expenditures. Other income remained stable at 721.31 lakhs, largely driven by interest income from fixed deposits. In line with the decline in profitability, tax expenses fell by 18% to 922.21 lakhs, leading to a Profit After Tax (PAT) of 2,707.77 lakhs for the year.

The main two verticals continued to gain momentum last year, with the IEHM vertical was at 57% of overall revenues and the T&M vertical was at 38% of the overall revenues. We continued to invest in the newly created HCLS vertical, and it generated 4% revenue last year. Both IEHM and T&M verticals have well established large multinational customers across North America and Europe and expected to grow steadily both offshore In India and onsite in the customers home countries over the next few years. We have invested in building stronger execution capabilities to grow our international teams to 500 employees in the next few years across North America and Europe.

(Rs. in Lakhs)

Particulars	Standalone			Consolidated
	FY 2024-25	FY 2023-24	YoY (%)	FY 2024-25	FY 2023-24	YoY (%)
Revenue from Operations	38,107.58	34,595.20	10%	49,131.61	47,239.17	4%
Other Expenses	5,703.89	4,684.69	22%	6,650.17	6,254.51	6%
Employee Expense	28,597.21	25,780	11%	38,011.83	35,764.65	6%
Operating Profit	3,806.48	4,130.51	-8%	4,469.61	5,220.01	-14%
Other Income	1,118.36	1028.02	9%	721.31	727.24	-1%
EBITDA	4,924.84	5,158.53	-5%	5,190.92	5,947.25	-13%
Depreciation	1,358.54	1,289.66	5%	1,338.69	1,297.46	3%
Finance Costs	270.57	144.1	88%	222.25	134.1	66%
Profit Before Taxes (PBT)	3,295.73	3,724.77	-12%	3,629.98	4,515.70	-20%
Tax	857.38	951.67	-10%	922.21	1,123.93	-18%
Profit After Taxes (PAT)	2,438.35	2,773.10	-12%	2,707.77	3,391.77	-20%

Key changes in significant Financial Ratios

Standalone Basis

Key Ratios	FY 2024-25	FY 2023-24	Variance%	Reason for such change
Debtors Turnover	4.52	4.9	(7.9%)	-
Inventory Turnover	NA	NA	NA	-
Interest Coverage Ratio	1.22	1.5	(17.91%)	-
Current Ratio	2.94	3.1	(4.9%)	-
Debt/Equity Ratio	NA	NA	NA	-
Return on Equity	12.53%	15.90%	(21.17%)	Increased operating cost has resulted in decrease in net profit.
Operating Profit Margin (%)	10.0%	11.9%	(16.34%)	Increased operating cost has resulted in decrease in net profit.
Net Profit Ratio	6.40%	8.02%	(20.18%)	Increased operating cost has resulted in decrease in net profit
Return on Capital Employed	18.02%	20.98%	(14.10%)	Increased operating cost has resulted in decrease in net profit

Consolidation Basis

Key Ratios	FY 2024-25	FY 2023-24	Variance %	Reason for such change
Debtors Turnover	4.5	4.7	(4.1%)	-
Inventory Turnover	NA	NA	NA	-
Interest Coverage Ratio	1.3	1.8	(26.3%)	-
Current Ratio	3.9	3.8	2.99%	-
Debt/Equity Ratio	NA	NA	NA	-
Return on Equity	12.55%	17.8%	(29.5%)	Increased operating cost has resulted in decrease in net profit.
Operating Profit Margin (%)	9.1%	11.1%	(17.7%)	Increased operating cost has resulted in decrease in net profit.
Net Profit Ratio	5.5%	7.2%	(23.24%)	Increased operating cost has resulted in decrease in net profit
Return on Capital Employed	17.3%	22.6%	(23.21%)	Increased operating cost has resulted in decrease in net profit

Business Outlook

Starting the new financial year, our focus is now 100% on serving our customers. We ended the year with around 80 customers across the three focussed verticals. Both the near-term and long-term opportunities with majority of our existing customers is positive and we see gaining momentum in both revenue and EBITDA growth from the coming financial year. We have provided guideline of double-digit revenue and EBITDA growth for the next 3 years, backed by our strong execution capabilities.

Our mechanical engineering services business is now at approximately 50% of our overall revenues and the high growth % software business contributes the balance 50%. We expect both these service lines to

continue to grow and we are committed to invest in personnel, training, labs and infrastructure.

With change in business model, our global agile sales offices are being transitioned to project offices next to each customer which will allow us to build deeper client engagement and onshore project management presence. Overall, we feel we are in a good position to start gaining momentum with our large strategic customers.

Internal Controls

The Company recognises the importance of a strong internal control system due to its global presence and extensive network of associates. The Company has designed its internal controls to align with its size and operations, ensuring accurate financial and operational reporting, legal compliance, asset protection, proper transaction execution and adherence to its policies. The Company follows a well-defined plan for approving revenue and expenditure.

For FY 2024-25, the Company appointed M/s. Ahuja Valecha & Co., LLP, Chartered Accountants, as its internal auditors. The Company ensures that the audit is conducted based on a plan reviewed annually in consultation with its statutory auditors, M/s. BSR & Co. LLP, Chartered Accountants and the Audit Committee.

Risk Management

Onward Technologies has implemented a risk management policy to incorporate risk management into its core strategic and operational activities. The Company ensures that risk management is a shared responsibility across the organisation.

Onward Technologies has developed a comprehensive enterprise-wide risk management strategy that includes planning, implementation, monitoring, review and continuous improvement. The Company has identified key risks and established effective mitigation strategies to address them.

Risks	Details of Risks	Mitigation
Rivalry Risks	The Company competes with Indian IT firms, multinational IT organisations and entrepreneurs who operate in cost- effective locations while maintaining strong client relationships, in-house services and captive units. The Company faces intense competition in the global engineering services sector, where rivals increasingly focus on key growth areas such as cloud computing, cybersecurity and workforce transformation.	The Company is improving its solutions by adopting new technologies. The Company is also broadening its service portfolio by entering new industries and geographic markets while focussing on partnerships and strategic investments.
Compliance Risks	The Company operates across multiple countries and sectors, which exposes it to the risk of non-compliance with essential regulatory standards crucial for its operations.	The Company has set up dedicated teams to track and manage regulatory requirements for different regions and industries. Onward Technologies follows a global compliance framework to identify and reduce regulation risks. The Company created this framework to protect its reputation, employees and customers. Onward Technologies repeatedly checks compliance and follows clear rules to meet regulations. If any issues are found, the Company quickly takes action to fix them.
Attrition Risks	The Company faces challenges in retaining talent management and meeting the increasing demand for new talent as it continues to grow. Talent acquisition risks persist due to skill gaps and high attrition, especially given the demand from MNCs and GCCs.	The Company is committed to promoting a workplace culture founded on transparency and collaboration. Onward Technologies has launched a comprehensive training program aimed at supporting employee growth across all levels. This initiative emphasises professional, technical, functional and leadership development. The HR team actively engages with employees, offering guidance and encouraging career progression through internal advancement opportunities. By implementing well-structured career and talent development strategies, the Company ensures employees can achieve their goals. These efforts are further reinforced through targeted training, improved retention initiatives and succession planning.
Risks	Details of Risks		Mitigation
Geopolitical Risks	The Company recognises that the IT industrys growth has often been affected by global economic instability and uneven development, a trend that may continue. The Company may face challenges such as reduced IT spending, project delays, contract cancellations, or postponed client purchases due to economic or political uncertainties. The Companys international expansion efforts could also be impacted by increasing geopolitical tensions among major economies.		The Company has set up a system to monitor global risks and adjust its strategies for the clients and employees. The Company also hires local talent through special programmes to handle restrictions on employee mobility. The Company invests in a flexible workforce, including onsite, onshore, nearshore and offshore teams, to overcome challenges and ensure top talent can meet client needs.
Tax-related Risk	The Company may face an impact on its effective tax rate due to changes in tax regulations in India and other countries where it has a significant presence.		The Company manages its tax risk by working with professional tax advisors who stay informed about global tax developments. The Company implements effective tax planning strategies to adapt to regulatory changes, ensuring compliance and minimising tax liabilities.
Currency Risk	The Company generates approximately 50% of its revenue from clients outside India, making it vulnerable to foreign exchange rate fluctuations since its earnings are received in foreign currencies.		The Company uses foreign exchange forward contracts and options to reduce the risk of foreign exchange rate fluctuations on receivables and projected transactions in specific foreign currencies. The Company follows Board approved policies and procedures to determine hedge duration, the level of risk coverage and counterparty risk management.
Business Continuity Risks	The Company operates in a complex and ever-changing global risk environment, where its position as a leading technology enterprise depends on its resilience to threats and ability to manage disruptions effectively. The Company recognises that any failure to maintain operational continuity across clients, delivery sites and support functions could significantly impact its business operations.		The Company has consistently strengthened its business continuity plan by integrating resilience across its IT infrastructure, workforce, workspace, business processes, technology, supply chain and leadership. The Companys past experiences have enabled it to navigate uncertainties effectively, ensuring preparedness for future challenges.
Technological Related Risks	Customer satisfaction risks can stem from technological obsolescence or delays in service delivery. Cybersecurity and internal threats such as fraud and data breaches are managed through robust access controls, periodic audits and a well-defined incident response framework.		The Company mitigates these risks by staying aligned with emerging technologies and maintaining a strong focus on high-quality delivery. It also conducts ongoing employee training and monitoring to ensure data security, prevent fraud and enable prompt response to any breaches.
Strategic Risks	Strategic risks arising from leadership succession challenges, declining client investments in R&D and the rapidly evolving technological landscape within the automotive sector.		Strategic risks are effectively mitigated through the expansion of a diversified service portfolio, sustained investment in innovation and the continuous development of strategic leadership capabilities to ensure long-term organisational resilience and adaptability.

Human Resources

Onward Technologies values its employees as crucial contributors to its growth and success, given its complex business model as a service provider. The Company is committed to cultivating an inclusive and diverse workplace, providing a fair and supportive environment for everyone. The Company values and respects its workforces unique backgrounds, experiences and aspirations.

In FY 2024-25, Onward Technologies significantly improved policies and procedures, with a strong focus on employee safety. The Company introduced several digital initiatives to enhance employee support, including the Human Resource Management System, which automated key HR functions and enabled remote access. Onward Technologies also partnered with a global payroll expert to manage its Indian payroll process. As of March 31, 2025, Onward Technologies had a workforce comprising 2,581 employees.

Cautionary Statement

The Company acknowledges that certain statements in this Management Discussion & Analysis Report regarding future growth prospects are forward-looking and subject to risks and uncertainties. The Company understands that actual results may differ significantly due to various factors. The Company faces external risks such as intense competition in IT services, rising wages in India, immigration restrictions, reduced demand for technology in key areas, telecommunication disruptions, withdrawal of government incentives, political instability, legal restrictions on capital raising or acquisitions outside India and overall economic conditions impacting the industry. The Company also encounters internal challenges, including fluctuations in earnings, managing growth, attracting and retaining skilled professionals, cost and time overruns in fixed- price contracts, client concentration risks, handling international operations, successfully integrating acquisitions, liability risks on service contracts, the performance of strategic investments and protecting intellectual property from unauthorised use.