Onward Technologies and Kross Ltd Post Record Q2 FY27 Results as Indian Mid-Caps Beat Expectations

The Quick Take

• Onward Technologies (BOM:517536) reported highest-ever quarterly revenue of INR170 crores in Q2 FY27, with EBITDA margins at a record 15.6%, and lifted its full-year FY27 growth and margin outlook
• Kross Ltd (NSE:KROSS) posted 80% year-on-year revenue growth to INR235 crores with PAT up 143%, driven by record trailer axle volumes and the new extruded beam manufacturing process
• Both Indian mid-cap companies beat expectations, with Kross noting that rising steel input costs are partly offsetting its margin expansion from the new production process

Two Indian mid-cap companies reported strong Q2 FY2027 (July-September 2026) results that exceeded market expectations. Onward Technologies (BSE: 517536), an engineering IT services company specializing in product lifecycle management and embedded software for global manufacturing clients, reported its highest-ever quarterly revenue of INR170 crores — a landmark that management highlighted as validation of its strategic focus on higher-value engineering services. EBITDA margins of 15.6% represent a record for Onward, reflecting both operating leverage from higher revenue and the favorable mix shift toward offshore engineering services. The company lifted its FY27 growth and margin guidance, signaling confidence in pipeline conversion through the second half of the year.

Kross Limited (NSE: KROSS), a trailer components manufacturer focused on axles and suspension systems for commercial vehicles, delivered explosive 80% year-on-year revenue growth to INR235 crores in Q2 FY27, driven by record trailer axle production volumes and the company's new extruded beam manufacturing process that improves product consistency and reduces material waste. Profit after tax surged 143% year-on-year, reflecting strong operating leverage on the higher revenue base. The new extruded beam process is particularly significant: it represents a process technology differentiator that allows Kross to produce trailer beams with greater precision and at lower cost than conventional fabrication methods, potentially expanding the company's addressable market. Management noted that rising steel prices are a headwind, partially compressing the gross margin benefit from the new process.

The Onward and Kross earnings results together provide a positive read-through for Indian mid-cap stocks broadly: both companies derive meaningful revenue from global demand — Onward from global automotive and industrial OEM engineering services, Kross from Indian domestic commercial vehicle infrastructure growth. Watch points for Onward include: the pipeline of new engineering services contracts from global automotive clients as EV platform development accelerates; margin sustainability at 15.6% as the company scales; and international expansion of its PLM services practice. For Kross, the key variables are: commercial vehicle trailer industry production volumes through the rest of FY27, steel price trajectory (input cost headwind), and whether the extruded beam process advantage can be extended to additional product categories.

Synthesized from 3 sources.