Onward Technologies Ltd Management Discussions

Macro economy overview

Global economy

The global economy grew by 3.4% in 2025, in line with 2024, demonstrating resilience despite elevated trade and policy uncertainty, supported by disinflation, accommodative financial conditions and technology-led investment. Growth remains supported by strong performance in emerging markets and steady expansion in advanced economies. Looking ahead, global growth is projected at 3.1% in 2026 and 3.2% in 2027. While geopolitical developments may create near-term headwinds, the overall outlook remains constructive. Continued investment in technology, particularly artificial intelligence (AI) in North America and Asia - is providing a strong counterbalance and has the potential to drive productivity gains. At the same time, sustained policy focus, improving institutional frameworks and global cooperation are expected to support stability.

Global IT spending is expected to witness steady growth over the medium term, supported by enterprise priorities around cybersecurity, cloud migration, platform engineering and AI adoption. According to Gartner estimates, worldwide IT spending is projected to reach $6.15 trillion in 2026, up 10.8% from 2025, even as enterprises remain cautious about discretionary spending in the near term.

Engineering Research and Development (ER&D) spending is also expected to remain resilient, driven by structural trends such as electrification, software- defined products, sustainability, autonomous systems and smart connected solutions. These trends are expected to support sustained demand for digital engineering and ER&D services, aligning with the Companys strategic focus areas.

Source: International Monetary Fund, April 2026 report Source: Gartner

Indian Economy

The Indian economy demonstrated strong resilience despite elevated global uncertainty, supported by robust domestic fundamentals and timely policy interventions. As per the revised GDP series (Base Year 2022-23), real GDP growth is estimated at 7.6% in FY 2025-26, up from 7.1% in FY 2024-25, driven by steady private consumption, improving investment activity and sustained strength in both services and manufacturing. Policy support remained comprehensive throughout the year, with GST and income-tax rationalisation aiding demand. In parallel, monetary easing, including policy rate cuts and liquidity measures, along with calibrated actions, helped cushion the economy against trade-related uncertainties and geopolitical developments in West Asia. Moreover, the free trade agreements with Europe, the UK and bilateral agreements with the US and New Zealand have further strengthened the Indian economic outlook. However, the Indian economy is expected to grow by 6.9% in FY 2026-27, moderated slightly by geopolitical conflicts and energy price fluctuations.

Indian GDP Growth (%)

Year	Indian GDP Growth (% YoY)
FY 2023-24	7.2
FY 2024-25	7.1
FY 2025-26*	7.6
FY 2026-27#	6.9

*Estimated

#Reserve Bank of India Projection

From an IT services perspective, the strong momentum in the services sector, coupled with accelerating digital adoption, cloud migration and increasing investments in artificial intelligence (AI), continues to create a supportive demand environment. Cost optimisation initiatives and vendor consolidation among global enterprises are accelerating the shift toward strategic engineering and digital services partners, creating opportunities through increased offshoring and demand for efficiency-led transformation.

Source: Ministry of Statistics & Programme Implementation (MoSPI)

Source: Reserve Bank of India

Industry Overview

Indian Information Technology (IT) Industry

The Indian Information Technology (IT) industry remains a key pillar of the global digital economy. Its growth is driven by strong innovation capabilities, a large, skilled workforce and the increasing adoption of advanced technologies such as artificial intelligence (AI), cloud computing and digital platforms. The Indian IT sector has been estimated to have grown from $297.2 billion in FY 2024-25 to $315.4 billion in FY 2025-26, registering a 6.1% YoY growth. Exports remain the primary growth driver, supported by continued demand for services such as engineering research and development and business process management, while core IT services and software products are also witnessing stable growth. Indian IT exports crossed $246 billion in FY 2025-26, registering a year-on-year growth of 5.6%, driven by strong performance in ER&D at 7.7% and BPM at 7%. IT services grew by 4.1%, while software products grew by 4%. Meanwhile, domestic revenues are expected to rise from $63.9 billion to $69.0 billion, registering 8.1% YoY growth, indicating steady expansion across both markets. At the same time, faster growth in domestic revenues indicates strengthening demand from Indian enterprises as digital transformation accelerates across industries.

Indian technology providers are increasingly partnering with global hyperscalers and platform companies to co-develop solutions across infrastructure, platforms and industry-specific applications. Emerging partnerships among key industry players are enabling the sector to transition from a scale-driven delivery model to a global hub for innovation. Enterprises are increasingly entrusting India-based teams with full ownership of platforms, products and AI-led transformation initiatives. The increasing adoption of automation, AI and platform-led delivery models is driving productivity gains and supporting more efficient resource utilisation across the industry.

Engineering, Research and Development (ER&D)

Indias ER&D business segment has emerged as the fastest-growing part of Indias technology sector, evolving from cost-focussed offshoring to domain-led, end-to-end ownership across the product lifecycle. The sector witnessed growth, driven by the modernisation of ER&D stacks through platform-based, software- enabled models and increased investments in semiconductors and advanced technologies. India has emerged as a leading global R&D and innovation hub, accounting for nearly 34% of new or scale-up R&D centre announcements in CY 2025, highlighting its strategic role in global engineering and innovation. Digital engineering is transforming how products and digital platforms are designed, developed and managed, enabling organisations to accelerate innovation, improve operational efficiency and deliver superior digital experiences. As technological advancements accelerate, businesses must align with key digital engineering trends to remain competitive.

Indian engineering service providers are increasingly assuming long-term platform ownership and building full-stack capabilities, while Global Capability Centres (GCCs) in India serve as critical hubs for innovation, product development and end-to-end engineering management. The transformation is further accelerated by shorter product cycles, AI- driven engineering and technological modernisation, although macroeconomic uncertainties, delayed decision- making and Research and Development (R&D) budget rationalisation influence the pace of growth. In CY 2025, global sourcing expenditure increased to over $307 billion, up approximately $18 billion from CY 2024. In CY 2025, spending on IT outsourcing grew by approximately 6.5% to nearly $180 billion, driven by enterprises and Global Capability Centres (GCCs) expanding their investments in artificial intelligence. Meanwhile, global Business Process Outsourcing spending rose by around 5.7% to about $130 billion, supported by the increasing integration of AI, particularly AI-driven agents, across business processes. India continues to remain a preferred global outsourcing destination and this competitive advantage is expected to persist in the near future.

Global enterprise spending on engineering research and development (ER&D) is rising steadily, reflecting the growing importance of innovation-led growth across industries. The outsourcing segment is expanding at a sustained pace over the medium term, indicating that enterprises are increasingly relying on external partners to drive product development and digital engineering initiatives. The global enterprise ER&D outsourcing market is expected to grow from approximately $81-82 billion in CY 2024 to around $133-135 billion by CY 2030, representing an 8.5-9.5% growth rate over the forecast period.

Emerging Technology Trends in the Industry

Digital transformation

In 2026, the IT industry is going through a major shift. Digital transformation is increasingly being driven by Al-led infrastructure and cloud adoption. Companies are reallocating more of their budgets toward scalable AI solutions that can deliver long-term value. Generative Al has also moved beyond experimentation and is now being used at scale, with success measured by real business outcomes and tangible impact on profitability.

At the same time, the industry is evolving toward agentic Al. Instead of just supporting tasks, these systems can independently plan and execute complex workflows across areas like design and manufacturing. Business models are also changing, with a shift away from headcount-based growth toward outcome-driven and risk-sharing approaches. This is driving more specialised, industry-focussed solutions, especially in highly regulated sectors such as healthcare and automotive. In parallel, building strong cyber resilience and ensuring trust in AI systems has become essential. Companies that can embed these capabilities into their core systems are better positioned to manage complex global regulations and meet the growing demand for technological independence in a changing geopolitical environment.

Company Overview

Onward Technologies Limited ("Onward Technologies” or "the Company”) is a software outsourcing company specialising in digital and engineering research & development (ER&D) services, enabling next-generation transformation across industrial ecosystems. The Company is positioned at the intersection of AI-led engineering, advanced analytics, and digital infrastructure, supporting clients in building smart, connected, and sustainable systems.

With a strong focus on Industrial Equipment, Off- Highway, Energy, Data Centers, Automotive, Rail Transportation, Healthcare and Life Sciences, Onward Technologies delivers integrated solutions that combine engineering depth with digital intelligence. The Companys capabilities span AI, digital engineering, cloud, embedded systems, application platforms and data analytics, enabling customers to enhance product innovation, operational efficiency, and lifecycle performance.

Over the years, the Company has continuously strengthened its global delivery capabilities to better align with evolving client requirements. It has invested in robust infrastructure and established a well-balanced onsite, nearshore and offshore delivery model. Through its Offshore Development Centres (ODCs) and managed services model, Onward Technologies workforce of 2,485 employees supports stronger governance, scalable operations and sustained alignment with key customer requirements.

Onward Technologies operates through a global delivery model supported by 12 offices across North America,Europe,andIndia,enabling scalableexecution, proximity to clients, and access to specialised talent. Approximately 70% of its business is driven by North America and 30% from Europe, reflecting strong client relationships and demand across key industries in the region. Its offshore development centres in India act as hubs for AI innovation, analytics-led transformation, and advanced product engineering.

Integrated Capabilities, strong vertical and domain focus

Onward Technologies is evolving from a traditional ER&D services provider into a digital engineering partner aligned with global demand for smart infrastructure, digital transformation, and AI-enabled solutions. This strategic shift strengthens engineering depth across industrial ecosystems, with growing relevance, enabling predictive insights, automation, and optimised lifecycle performance across complex environments.

The Companys integrated service portfolio spans the entire engineering value chain:

• AI, Data & Advanced Analytics underpin all offerings, with capabilities in generative AI, agentic AI, machine learning, and data platforms driving predictive intelligence, real-time decision- making, and autonomous operations

• Intelligent Product Engineering spans end- to-end product development, automation, and digital twin, enabling the design and lifecycle management of complex engineering systems, including industrial equipment, software-defined vehicles, EV platforms, and regulated medical devices.

• Energy & Data Centre is a key focus area, with capabilities supporting power generation systems, electrification, thermal management, and high-performance data centre infrastructure.

• Connected & Intelligent Systems leverage Industrial IoT and IT/OT convergence to enable smart factories, connected mobility platforms, and intelligent healthcare ecosystems, with integrated real-time monitoring, control, and analytics.

• Cloud, Platforms & Cybersecurity capabilities support scalable, secure, and continuously evolving digital ecosystems, including cloud transformation, DevSecOps, CI/CD, OTA updates, and cybersecurity frameworks.

• Supply Chain Operations integrate AI- driven analytics, control towers, procurement transformation, and manufacturing optimisation to drive efficiency, cost optimisation, and operational resilience.

Onward Technologies operates across three core verticals Industrial Equipment & Heavy Machinery (IEHM), Transportation & Mobility (T&M), and Healthcare & Life Sciences (HCLS).

Industrial Equipment & Heavy Machinery (IEHM)

The IEHM vertical empowers transformation across industrial machinery, energy, and data centers through advanced engineering expertise and smart technologies. It delivers end-to-end software and technology solutions to support product development, testing, and system integration at scale.

The IEHM vertical contributed 63% of the Companys total revenue in FY 2025-26.

Transportation & Mobility (T&M)

The vertical drives innovation across the automotive and rail transportation ecosystem, supported by domain expertise and digital-first solutions. It delivers software services to manufacturers closely aligned with their critical path requirements, emphasising outcome-driven, ownership-based engagements to maximise value creation.

The T&M vertical accounted for 34% of the Companys total revenue in FY 2025-26.

Healthcare & Life Sciences (HCLS)

The HCLS vertical supports MedTech and digital health companies through a combination of digital engineering, regulatory assurance capabilities, enabling the development of innovative, compliant and healthcare solutions.

The HCLS vertical accounted for 3% of the Companys total revenue in FY 2025-26.

Through this integrated framework, Onward Technologies delivers end-to-end, AI-led engineering solutions, enabling clients to accelerate innovation, enhance operational efficiency, and data-driven decision-making across the entire product lifecycle, reinforcing its role as a trusted digital engineering partner.

Operational Performance Review Revenue By Industry (%)

Particulars	FY 2025-26	FY 2024-25
Industrial Equipment & Heavy Machinery (IEHM)	63%	57%
Transportation & Mobility (T&M)	34%	38%
Healthcare & Life Sciences (HCLS)	3%	4%

Revenue By Geography (%)

Particulars	FY 2025-26	FY 2024-25
USA	36%	34%
Europe	12%	14%
India	52%	52%

Revenue By Contract Type (%)

Particulars	FY 2025-26	FY 2024-25
Time & Material	88%	86%
Fixed Time, Fixed Price	12%	14%

Revenue By Engagement Model (%)

Particulars	FY 2025-26	FY 2024-25
Onsite	29%	28%
Offshore	71%	72%

In FY 2025-26, Industrial Equipment & Heavy Machinery (IEHM) continues to remain the largest contributor, accounting for 63% of total revenue, up from 57% in FY 2024-25. The Transportation & Mobility (T&M) vertical accounted for 34% of total revenue in FY 2025-26, and the Company continued to invest in strengthening its Healthcare & Life Sciences (HCLS) vertical, which contributed to 3% of total revenue in FY 2025-26.

The Company has a strong base of large multinational customers across North America and Europe in both the IEHM and T&M verticals and expects steady growth through a combination of offshore delivery in India and onsite engagements in customer geographies over the coming years. Onward Technologies has also invested in strengthening execution capabilities and plans to expand its international workforce across North America and Europe over the next few years.

Financial Performance Review

(Rs. in Lakh)

Particulars	Standalone			Consolidated
	FY 2025-26	FY 2024-25	YoY (%)	FY 2025-26	FY 2024-25	YoY (%)
Revenue from Operations	41,677.36	38,107.58	9%	54,385.24	49,131.61	11%
Other Expenses	5,879.42	5,703.89	3%	7,618.40	6,650.17	15%
Employee Expense	30,115.99	28,597.21	5%	39,582.25	38,011.83	4%
EBITDA	5,681.95	3,806.48	49%	7,184.59	4,469.61	61%
Other Income	906.69	1,118.36	-19%	704.23	721.31	-2%
Depreciation	1,653.18	1,358.54	22%	1,579.69	1,338.69	18%
Finance Costs	333.81	270.57	23%	289.05	222.25	30%
Profit before exceptional items and tax	4,601.65	3,295.73	40%	6,020.08	3,629.98	66%
Exceptional Items	315.50	0.00	100%	315.50	0.00	100%
Profit Before Tax (PBT)	4,286.15	3,295.73	30%	5,704.58	3,629.98	57%
Tax	1,070.27	857.38	25%	1,272.19	922.21	38%
Profit After Tax (PAT)	3,215.88	2,438.35	32%	4,432.39	2,707.77	64%

Standalone

During FY 2025-26, the Company reported its financial performance on both a standalone and consolidated basis. On a standalone basis, Revenue from Operations stood at T41,677.36 Lakh as compared to T38,107.58 Lakh in FY 2024-25, while EBITDA was T5,681.95 Lakh against T3,806.48 Lakh in the previous year. Profit Before Tax (PBT) amounted to T4,286.15 Lakh, compared with T3,295.73 Lakh in FY 2024-25 and the tax expense stood at T1,070.27 Lakh versus T857.38 Lakh last year. Profit After Tax (PAT) stood at T3,215.88 Lakh, compared with T2,438.35 Lakh in FY 2024-25.

Consolidated

On a consolidated basis, Revenue from Operations was T54,385.24 Lakh as against T49,131.61 Lakh in FY 2024-25. EBITDA stood at T7,184.59 Lakh compared to T4,469.61 Lakh in the previous year, while Profit Before Tax (PBT) was T6,020.08 Lakh as against T3,629.98 Lakh. The tax expense for the year amounted to T1,272.19 Lakh, compared with T922.21 Lakh in FY 2024-25. Profit After Tax (PAT) stood at T4,432.39 Lakh, compared with T2,707.77 Lakh in FY 2024-25.

Key Performance Indicators (KPI)

Particulars	FY 2025-26	FY 2024-25
Client Base
Active Clients	72	80
Top 5	48%	50%
Top 10	64%	66%
Top 25	87%	84%
Clients with Annual Billing >$1 million	16	13
Employee Metrics
Total Employees	2,485	2,581
DSO (Billed +Unbilled)
Days	75	76

During FY 2025-26, the Company reported 72 active clients. The contribution from the top five clients stood at 48%, while the top ten clients accounted for 64%. The top twenty-five clients accounted for 87% of total revenue, up from 84% in the prior year. The number of clients with annual billing exceeding $1 million stood at 16 during FY 2025-26, compared to 13 in FY 2024-25.

Key changes in significant Financial Ratios

Standalone Basis

Key Ratios	FY 2025-26	FY 2024-25	Variance (%)	Reason for such change
Debtors Turnover	5.40	4.52	19.52%	Increased revenue and decreased trade receivable has resulted in increased trade receivable turnover ratio
Inventory Turnover	NA	NA	0.00%	NA
Interest Coverage Ratio	1.52	1.22	24.94%	No material variance
Current Ratio	3.06	2.94	4.31%	No material variance
Debt/Equity Ratio	NA	NA	0.00%	NA
Return on Equity	15.48%	12.53%	23.55%	Increased revenue and decrease in operating cost has resulted in increase in net profit
Operating Profit Margin (%)	13.63%	10.00%	36.49%	Increased revenue and decrease in operating cost has resulted in increase in operating profit
Net Profit Ratio	7.72%	6.40%	20.59%	Increased revenue and decrease in operating cost has resulted in increase in net profit
Return on Capital Employed	23.48%	18.02%	30.28%	Increased revenue and decrease in operating cost has resulted in increase in net profit

Consolidation Basis

Key Ratios	FY 2025-26	FY 2024-25	Variance (%)	Reason for such change
Debtors Turnover	4.74	4.49	5.59%	Increased revenue and decreased trade receivable has resulted in increased trade receivable turnover ratio
Inventory Turnover	NA	NA	0.00%	NA
Interest Coverage Ratio	1.68	1.30	29.33%	No material variance
Current Ratio	3.66	3.87	-5.39%	No material variance
Debt/Equity Ratio	NA	NA	0.00%	NA
Return on Equity	18.55%	12.55%	47.80%	Increased revenue and decrease in operating cost has resulted in increase in net profit
Operating Profit Margin (%)	13.21%	9.10%	45.22%	Increased revenue and decrease in operating cost has resulted in increase in operating profit
Net Profit Ratio	8.15%	5.51%	47.88%	Increased revenue and decrease in operating cost has resulted in increase in net profit
Return on Capital Employed	25.42%	17.34%	46.60%	Increased revenue and decrease in operating cost has resulted in increase in net profit

Outlook

Indias technology services sector is entering a new phase of evolution, shaped by geopolitical uncertainty, accelerating AI-led disruption and shifting client expectations. Onward Technologies is observing a clear shift in client priorities, with organisations moving beyond incremental improvements towards deeper strategic transformation. While overall technology spending is expected to remain stable at around 5-7% growth, its composition is becoming increasingly selective, with enterprises balancing speed-to-market requirements alongside large-scale transformation programmes.

The Companys growth across the sector is becoming more segment-driven, with differentiation increasingly defined by domain depth, Al-readiness and talent capability. Onward Technologies notes that industry participants are focussing on platform- led delivery models, outcome-based solutions, and vertical specialisation to strengthen capabilities and competitiveness. The digital engineering and ER&D services space is expected to sustain steady growth, supported by continued global investment in product innovation, engineering transformation and digital adoption.

The Company demand from the United States and Europe remains resilient, while the increasing integration of Alacross enterprise workflows is creating new opportunities across managed services, Business Process Management (BPM), ER&D and software product segments. Onward Technologies is well-positioned to capture these opportunities, supported by its established international presence and strong offshore delivery capabilities. The Company remains focussed on deepening client relationships, expanding across core verticals, strengthening execution excellence and investing in talent upskilling and domain expertise to support sustainable and profitable growth over the medium term.

Risk Management

Onward Technologies has established a robust risk management policy that embeds risk oversight into its strategic and operational decision-making processes, with accountability shared across all levels of the organisation. The Company has implemented a comprehensive enterprise-wide risk management framework, including risk identification, assessment, planning, execution, monitoring and continuous review. During the year under review, the Company systematically identified key risks and undertook appropriate mitigation strategies to effectively manage and minimise potential impacts.

Risks	Details of Risks	Mitigation
Attrition Risk	Attrition risk refers to the loss of employees, which can impact productivity, continuity of knowledge, and timely project delivery. This risk is higher in a competitive talent market where global firms actively compete for skilled professionals.	Onward Technologies focusses on building a supportive and transparent work environment where employees feel engaged and valued. The Company invests in structured learning and development programmes covering technical, functional, leadership, and behavioural skills. Employees are encouraged to grow within the organisation through internal opportunities, mentorship, and regular engagement with HR teams. Strong career development pathways and succession planning are in place to improve retention and ensure continuity.
Compliance Risk	Compliance risk arises from failure to comply with applicable laws, regulations, or internal policies, which may lead to financial penalties or reputational impact. Operating across multiple geographies increases regulatory complexity.	The Company has established dedicated compliance teams that continuously monitor regulatory changes across all operating regions. Onward Technologies follows a structured global compliance framework to ensure adherence to legal and regulatory requirements. Regular internal reviews are conducted, and any gaps identified are promptly addressed through corrective actions. Strong governance practices help maintain ethical conduct and protect the organisations reputation.
Strategic Risk	Strategic risk arises from leadership succession challenges, changing market conditions, evolving client priorities, and rapid technological disruption.	Onward Technologies manages this risk by continuously refining its business strategy and expanding its service portfolio across domains. The Company invests in innovation and capability building to stay aligned with industry transformation. Leadership development is prioritised to support strong decision-making. The organisation also focusses on deep, long-term engagement with clients, especially through participation in their R&D ecosystems, to build sustainable partnerships.
Technological Risk	Technological risk includes system failures, cyber threats, outdated technology, and delays in adopting new solutions, which can affect performance and customer satisfaction.	The Company continuously adopts emerging technologies and ensures employees are regularly trained on new tools and platforms. Onward Technologies maintains strong cybersecurity controls, including access restrictions, regular audits, and continuous monitoring. Data protection and fraud prevention remain key priorities. A defined incident response framework ensures quick action in case of any security events, minimising operational impact.
Business Continuity Risk	Business continuity risk refers to disruptions in operations caused by unforeseen events that may impact critical business functions.	Onward Technologies has strengthened its business continuity framework across IT systems, infrastructure, workforce, and business processes. The Company has developed resilience across all key operational areas and regularly reviews continuity plans. These measures ensure that operations can continue smoothly even during unexpected disruptions.
Currency Risk	Currency risk arises from fluctuations in foreign exchange rates, particularly since a significant portion of revenue is earned in foreign currencies.	The Company manages currency risk through hedging instruments such as forward contracts and options. Onward Technologies follows a Board-approved policy that defines hedge coverage, tenure, and counterparty selection. This structured approach helps reduce volatility in earnings and provides stability to cash flows.
Tax-related Risk	Tax-related risk arises from changes in tax laws, regulatory interpretations, or disputes with tax authorities across jurisdictions.	Onward Technologies works with professional tax advisors to stay updated on global tax developments. The Company proactively reviews and adjusts its tax planning strategies to remain compliant with evolving regulations. This ensures effective tax management while maintaining compliance across all operating jurisdictions.
Geopolitical Risk	Geopolitical risk arises from political instability, trade restrictions, global conflicts, or policy changes that may affect business operations and client spending.	The Company actively tracks global developments and adjusts its operating strategies accordingly. Onward Technologies uses a flexible delivery model that includes onsite, offshore, and nearshore teams to maintain operational stability. The Company also hires local talent in key markets to reduce dependency on cross-border movement and ensure continuity in service delivery.
Rivalry Risk	Rivalry risk arises from intense industry competition, which can impact pricing, margins, and market share.	Onward Technologies addresses competitive pressures by continuously enhancing its service capabilities and adopting new technologies. The Company expands into new industries and geographies to diversify its business base. Strategic partnerships and targeted investments further strengthen its market position and support long- term growth.

Human Resources

Onward Technologies considers its people central to its growth and long-term success in its service- driven, complex business environment. The Company is committed to encouraging a fair workplace that values the varied backgrounds and aspirations of its employees. Investing in talent development and strengthening people practices remained a key focus, aiming to drive sustainable growth and long-term value creation. This year, the Company scaled up efforts to upskill employees and ensure their readiness in an AI-driven world.

Onward Technologies significantly enhanced its policies and procedures during FY 2025-26, with a strong focus on employee well-being and safety. The Company implemented several digital initiatives to enhance employee support, streamlining and automating key HR processes while enabling seamless remote access. As of March 31, 2026, the Company had a workforce of 2,485 employees.

Please refer to the Narrative Section for further details on Human Resources

Corporate Social Responsibility (CSR)

Onward Technologies believes in creating meaningful impact through its CSR initiatives, focussing on education, healthcare, community well-being and sports to support underserved communities. In FY 2025-26, the Company spent T62.47 Lakh on CSR while strengthening partnerships and expanding its outreach. Its education initiatives supported institutions such as Avasara Academy and the Ra Foundation, for programmes like Happy Kids and Pragati Second Chance, in partnership with Educate Girls, helping children and young women access education and build life skills. In sports, the Company partnered with the Inspire Institute of Sport and supported Vision Beyond Sight to nurture talent and promote participation among disadvantaged and visually impaired athletes. Its healthcare efforts, through the Society for the Rehabilitation of Crippled Children (SRCC), focussed on therapy and rehabilitation for children with special needs, improving their well- being. Additionally, through its association with the Roti Bank Foundation, the Company provided fresh meals to vulnerable communities, addressing immediate needs while supporting access to education and livelihoods.

Please refer to the Narrative Section for further details on CSR

Internal Controls

Onward Technologies places strong emphasis on maintaining a robust and effective internal control framework as a cornerstone of good governance and operational discipline. The Company acknowledges the critical role of a robust internal control framework, especially considering its global footprint and wide network of associates. Onward Technologies has established its internal control systems in accordance with the size and complexity of its operations to ensure reliable financial and operational reporting, compliance with statutory requirements, protection of assets, appropriate authorisation of transactions and strict adherence to internal policies. A well-defined and systematic process is followed for the approval of all revenue and expenditure transactions.

For FY 2025-26, the Company appointed M/s. Ahuja Valecha & Co., LLP, Chartered Accountants, as its internal auditors. The internal audit function is conducted in accordance with an annual audit plan formulated in consultation with the statutory auditors, M/s. BSR & Co. LLP, Chartered Accountants and reviewed by the Audit Committee. Onward Technologies remains committed to continuously strengthening its internal control systems to ensure transparency, accountability and sustained organisational integrity.

Cautionary Statement

The Company acknowledges that certain statements in this Management Discussion & Analysis Report relating to future growth prospects are forward- looking and subject to risks and uncertainties and that actual results may differ materially due to various factors. The Company faces external risks such as intense competition in the IT services industry, rising wage levels in India, immigration restrictions, reduced demand for technology in key segments, telecommunication disruptions, withdrawal of government incentives, political instability, geopolitical volatility affecting global economic conditions and client spending patterns, legal limitations on capital raising or overseas acquisitions and broader economic conditions affecting the industry, as well as internal challenges including earnings volatility, effective growth management, attracting and retaining skilled professionals, cost and time overruns in fixed-price contracts, client concentration risks, complexities in managing international operations, successful integration of acquisitions, potential liabilities under service contracts, performance of strategic investments and protection of intellectual property from unauthorised use.