Ladies and gentlemen, good day and welcome to the Q2 and H1 FY 2027 Conference Call of
Quick Heal Technologies Limited, hosted by Valorem Advisors.
As a reminder, all par cipant lines will be in the listen-only mode, and there will be an
opportunity for you to ask ques ons a er the presenta on concludes. Should you need
assistance during this conference call, please signal an operator by pressing “*” then “0” on
your touch-tone phone.
I now hand the conference over to Ms. Purvangi Jain from Valorem Advisors. Thank you, and
over to you, ma'am.
Purvangi Jain:
Thank you. Good evening, everyone, and a very warm welcome to you all. My name is Purvangi
Jain from Valorem Advisors, and we represent the investor rela ons of Quick Heal Technologies
Limited.
On behalf of the company, I would like to thank you all for par cipa ng in the company's
earnings conference call for the second quarter and first half of the financial year 2027.
Before we begin, let me men on a quick cau onary statement:
Some of the statements men oned in today's earnings call may be forward-looking in nature.
Such forward-looking statements are subject to risks and uncertain es, which could cause
actual results to differ from those an cipated. Such statements are based on management's
beliefs as well as assump ons made by, and informa on currently available to the
management. Audiences are cau oned not to place undue reliance on these forward-looking
statements in making any investment decisions. The purpose of today's earnings conference
call is purely to educate and bring awareness about the company's fundamental business and
financial performance for the quarter under review.
Now, without any further delay, let me introduce you to the Management par cipa ng with us
in today's Earnings Call:
We have with us Dr. Sanjay Katkar – Joint Managing Director, Mr. Harish Kumar – Chief Execu ve
Officer, and Mr. Ankit Maheshwari – the Chief Financial Officer.
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Without any further ado, I request Dr. Sanjay to start with his opening remarks. Thank you, and
over to you, sir.
Sanjay Katkar:
Yeah. Thank you. This is Sanjay Katkar. Good evening, everyone, and thank you for joining us. I
would like to begin with a perspec ve on how the cybersecurity environment is evolving and
how Quick Heal and Seqrite are responding to that change.
The a ack surface is expanding. Technology environments are becoming more distributed, and
customers are increasingly considering cybersecurity together with data protec on and privacy.
For us, this creates both a responsibility and a larger opportunity. Over the years, we have built
deep capabili es in threat research, endpoint security, and cybersecurity technology. The
strategic evolu on now underway is to apply those strengths to a broader set of customers'
problems. In enterprise, this means moving beyond our tradi onal strength in endpoint
protec on.
Our por olio is expanding into data privacy, exposure management, and ransomware resilience
alongside our broader cybersecurity capabili es. These are not isolated product bits. We are
building an integrated architecture through which our technology capabili es can increasingly
work together, helping customers simplify security opera ons, while enabling Seqrite to
address a larger share of their cybersecurity requirements. This evolu on is also changing how
we think about product development. Customers do not want security technologies that
operate in isola on or add future complexity to their environment. They expect be er visibility,
faster response, and solu ons that can be adopted without crea ng addi onal opera onal
burden.
Our product direc on is therefore guided by three principles: deepen protec on in the areas
where we already have strong capabili es, connect adjacent technologies into a more coherent
security architecture, and make the resul ng solu ons simpler for customers to consume and
manage. Our threat research at Seqrite Labs remains central to this approach. The telemetry
generated across our install base gives our teams a con nued view of how a acks are changing.
That insight is applied across detec on, response, and product design, helping us improve
established products while shaping newer capabili es.
The opportunity is par cularly relevant in India, where organiza ons across segments are
digi zing rapidly while facing increasingly sophis cated threats and a more demanding data
protec on environment. Our local research depth, established customer rela onships, and
expanding por olio give us a differen ated founda on from which to address this opportunity.
During H1 FY 2027, we secured strategic wins across defence, BFSI, and a large IT services
company through our new-genera on products. We also con nued to see momentum in the
government business. Beyond the immediate commercial value, such engagements are
important learning opportuni es. They allow us to validate our products in complex opera ng
environments, sharpen deployment models, and build reference use cases that can support
wider adop on across similar customer segments.
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It is about commercializing innova on, packaging our capabili es around specific customer
problems, simplifying adop on, and achieving scale. That requires close alignment across
engineering, product management, and go-to-market, and this is where the organiza on is
increasingly focused. We will con nue to invest in research and innova on because the threat
environment does not stand s ll. At the same me, we will judge progress by how effec vely
our technology improves customer relevance and translates into scalable business outcomes.
With that perspec ve, I will hand over to Harish.
Harish Kumar:
Thank you, Sanjay, and good evening, everyone.
Q2 is a step in the right direc on. More importantly, it gives us greater clarity on where we
need to focus to build a more consistent and scalable business. Our immediate priority is
commercial execu on. Over the last few quarters, we have invested significantly in our product
por olio, technology capabili es, and organiza on. The focus now is to translate these
investments into customer acquisi on, higher mone za on of our por olio, and stronger
produc vity from our go-to-market engine. Let me start with enterprise. We are seeing
increasing trac on in the enterprise business, including strategic wins across defence, BFSI, and
a large IT services company through our new-genera on products, while government con nues
to be an important market for us.
The next phase for Seqrite is about conver ng a broader por olio into a larger share of
customer cybersecurity and privacy spend. Our approach is differen ated by product maturity.
In established categories, par cularly endpoint security, the focus is on protec ng the install
base, improving renewals, and increasing profit. For newer offerings, our priority is different.
We need to establish stronger customer references, demonstrate the effec veness of the
solu ons in real-world environments, and create repeatable sales mo ons. We will scale
investment behind those offerings as customer valida on strengthens. Interna onally, we will
remain selec ve. We would rather build meaningful posi ons in a smaller number of markets
than spread our resources too thin.
In consumer, our ac ons are more conscious. The business has a strong franchise and
distribu on footprint, but growth cannot come at the expense of business quality. We have
therefore
ghtened credit and commercial controls. This may moderate some near-term
volume, but we believe it is the right trade-off to improve receivables quality, channel discipline,
and the economics of the business. We are also extending the Quick Heal proposi on beyond
conven onal an virus as consumers face a broader range of digital risks. We will approach
these opportuni es selec vely without dilu ng our focus on the core. Across enterprise and
consumer, therefore, the agenda is quite clear.
In enterprise, we need to mone ze the breadth of the por olio. In consumer, we need to
strengthen the quality and produc vity of the franchise. Across both businesses, we need
greater conversion, produc vity, and predictability. We are consequently becoming more
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selec ve about where we allocate people, capital, and management a en on. Innova on will
remain fundamental to Quick Heal, but at this stage, our success in innova on must increasingly
be visible in customer adop on and commercial outcomes. That is the execu on discipline we
are bringing to the business.
With that, I will hand over to Ankit to take you through the financial performance.
Ankit Maheshwari:
Thank you, Harish, and good evening, everyone. Let me now take you through the financial
performance for the quarter. Our financial performance for the quarter demonstrates our
resilience in the business as we sail through headwinds in the business, especially consumer.
For quarter two FY 2027, consolidated revenue stood at INR 65 crore, represen ng quarter-onquarter growth of 44% over Q1. On a year-on-year basis, revenue declined by 22%. The quarteron-quarter growth was visible across both businesses. Enterprise revenue was INR 35 crore,
increasing 18% quarter-on-quarter and declining 4% year-on-year. Consumer revenue was INR
36 crore, increasing 86% quarter-on-quarter and declining 40% year-on-year.
Ankit Maheshwari:
Total expenditure, excluding deprecia on, remained flat at INR 63 crore in quarter two. The
combina on of higher revenue and a lower opera ng cost base resulted in EBITDA improving
from a loss of INR 17.6 crore in quarter one to a posi ve INR 2.3 crore in quarter two. PAT was
INR 5.8 crore, compared with a loss of INR 5.3 crore in quarter one, resul ng in a PAT margin of
9%. Our balance sheet remains strong and debt-free, providing us with the flexibility to
con nue inves ng in R&D and market expansion opportuni es. Total receivables declined to
INR 98 crore from INR 107 crore at the end of quarter one.
The comparable figure in quarter two FY 2026 was INR 176 crore, which represents a reduc on
of INR 78 crore in total receivables over the course of one year due to our ghtened credit
control with our partners. Deferred revenue stood at INR 48 crore compared with INR 52 crore
in quarter one FY 2027, while the enterprise order book remained above INR 57 crore. Our
financial priori es are to maintain discipline on the cost base, con nue improving collec ons
and working capital, and translate revenue growth into consistent opera ng leverage and cash
genera on. With a strong founda on and a clear strategic roadmap, we remain commi ed to
delivering consistent and sustainable growth in the future. Thank you.
We will now be happy to take your ques ons.
Moderator:
Thank you very much. We will now begin the ques on-and-answer session. The first ques on
is from the line of Sheetal Shah, an individual investor. Please go ahead.
Sheetal Shah:
Am I audible, sir?
Moderator:
You are audible.
Sheetal Shah:
Very good a ernoon, sir. The last 10 years have been very painful for the company and its
shareholders in par cular. You may agree with me, sir. In spite of cybersecurity as buzzword
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since long, our company has a first-mover advantage and preference due to its domes c nature.
Our last 10-year financials are nothing but pathe c. March 2015 sales were INR 286 crore. A er
10 years, it has become INR 261 crore. Same with profit, INR 54 crore has turned to loss of INR
11 crore. Market capitaliza on is less than what it was 10 years ago.
Although we, the investor community, have had a hard me to get a concrete answer from the
management regarding what lies ahead, I am trying my luck again. We wish to ask you as what
you aspire from the company over the next three to four years in terms of revenue and margin.
This is my first ques on, sir.
Sanjay Katkar:
Yeah, Sheetal, this is Sanjay here, and absolutely, you rightly said, and gave the history about
the 10 years. I would like to add here or answer that we have been answering these ques ons
since long. It's not like we haven't shied away from answering this. If you see when we got
listed, we were predominantly a consumer an virus company, predominantly dealing with B2C
market across India and a leading market player in India. I will s ll say we are s ll the market
leader in the consumer segment, but overall, the market dynamics have changed. The
consumer an virus business has declined, not only in India, but also globally, due to certain
changes from the opera ng system side. Overall, the market for B2C consumer market globally
has dropped, and in many countries, it has dropped to almost negligible.
Now, in these 10 years, we have invested whatever we have earned through the consumer
market into building our enterprise security business. That is where this transi on we have
been going through. If you see since 2015, if you see our balance sheet, there has been constant
investment into building new products that are focused on the enterprise segment, and this
has given us results by seeing that if you see the revenue contribu on from enterprise sales has
been increasing every year. The contribu on from consumer sales has been declining since
then. That is why throughout these 10 years, if you see, we are looking fla sh or in some
quarters it is up, some quarters it is down. But overall, if you see now, our contribu on from
enterprise revenue is almost 56%.
Yeah, it's like almost 50%, and the revenue from consumer has dropped to 50%. The trac on is
that, if you see for at least the coming three years, the contribu on from enterprise will grow
beyond 80%, I guess. So that's what we an cipate, and enterprise cybersecurity market is s ll,
I'll say, in a growing stage, and it's going to be s ll bigger. India as a na on is taking cybersecurity
seriously, and we do have quite posi ve hopes that the Indian cybersecurity market is going to
grow in much different direc on for enterprise. We being early into this market again, and
having the experience of consumer cybersecurity protec on is giving us advantage that the only
Indian players with so many product offerings into cybersecurity, and that is where we are in
that direc on.
Regarding the outlook and margins, we currently don't disclose that because this is something
that we have been following. But I can clearly tell that our focus is enterprise market. We have
quite strong offerings with respect to EPP, EDR, and XDR product ver cal, and have started
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ge ng good enough market share in small and medium businesses with these offerings. We
are hopeful with expanding further with the market share as well as new product offering that
is data privacy, as we have seen that India has come out with this law, and we are having a good
enough understanding about data protec on and data privacy. So this new offering, which we
launched last year itself, is going to add to our revenues along with the security product
offerings that we have.
I think I have answered your ques on.
Sheetal Shah:
Yes, sir. But, okay, sir, you are again refraining from giving any revenue or margin guidance. No
worries, sir. I will try my luck other way. Sir, what is the biggest challenge in our business, be it
a consumer or an enterprise? Number one. And number two, sir, what is the external
environment you aspire so that our company can grow at a consistent rate for quarters and
years to come? These are my two ques ons, sir. The other way I'm asking the ques on.
Sanjay Katkar:
Can you repeat your first ques on?
Sheetal Shah:
Sir, what is the biggest challenge in our business, be it a consumer or an enterprise? Sir, I agree
with you that our preference has changed from consumer to business, enterprise. I agree with
you, sir. But it is not reflec ng in either volume or profit, sir. What challenges are you facing? I
am transferring the first ques on the second way, sir. Okay, what are the challenges you are
facing since long, sir? Why are we not able to overcome this? We are product development, we
are doing R&D, we are spending, we are doing everything, and we are the only Indian
cybersecurity company, and cybersecurity is such a buzzword now.
Every day now in the newspaper, we are reading this. But somewhere, actually where we are
going wrong such that we are not able to show anything in the financials, sir? In consumer or
be it an enterprise, and what are the external environment you aspire so that we can grow in a
consistent way, consistent and a profitable way? Sir, can you give me idea about this, so we as
a shareholder will come to know actually what you want and where we are lagging, sir.
Sanjay Katkar:
Yeah. I think I have already answered certain por ons, but I will try to add more data to this. If
you see, as I said, we have moved our focus from consumer to enterprise. The challenge on the
consumer side is that the dominance by Microso , which is a prominent opera ng system
provider for PCs, their policies about deploying free version by default, pulling out the expired
version by default, is the biggest challenge that not only Quick Heal, but across the globe, all
the an virus vendors face. That is the biggest challenge, and I cannot deny that, and it is there.
That is causing a major decline in the B2C business. On the enterprise front, of course,
enterprise is a bigger market, but enterprise cybersecurity market is much more fragmented.
The market that we are targe ng is endpoint security, EDR, XDR, which are our flagship
products, and that is where the strength lies with us. If you see in that as well, the market is
segmented in small, medium, and large enterprises. The one that we are targe ng is small,
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medium, and micro businesses. In India, the kind of cybersecurity spending by these
organiza ons is much lower than in other markets across the globe. That is the market that is
building in India as well. The spending habits, the awareness, the kind of budget alloca on for
cybersecurity is happening in these segments. Very large enterprises are not our customers
because their policies are completely different. It is like the market segment is driven by MNCs
where Gartner and all these things play a major role in selec on.
That is something that we are trying to avoid. We don't enter large enterprises, but mid-market
and small segment is growing, and that I am seeing very good trac on there, and I am confident
that we will be capturing a major share of the market in the coming years.
Sheetal Shah:
Okay, sir. This gives us an idea because at mes we were expec ng that the total addressable
market is so huge. But now we got something that it is compressed for us because we are
catering to only selected enterprise.
Sanjay Katkar:
Yeah. We are prominently into endpoint security, EDR, XDR, and with the new offerings of
data privacy, which is a new market that is ge ng created due to DPDP law. That is something
that we are now addi onally adding as a ver cal for us because we have launched our offerings
and we have started seeing good trac on in that as well. So that is more par cularly a new
ver cal, I'll say. In cybersecurity ver cals, there are many ver cals. You can say endpoint
security, firewall, networking and SSE, all these are different ver cals. We are not into those
markets. We are more prominently into endpoint EDR, XDR, and DLP.
Sheetal Shah:
Okay. Sir, in DPDP, can you give us some insight as our product can generate how much revenue,
sir? That insight is possible, sir, over a period of me?
Harish Kumar:
Yeah. This is Mr. Harish Kumar, CEO. We do not comment on individual products' projected
revenue, neither do we comment on the future revenue. But just to give you an idea, we are
ac vely engaging with enterprise and a lot of public sector clients to support their data
protec on and compliance requirements. Our focus is also on conver ng these opportuni es
into businesses through our expanding por olio also. While it is early to quan fy the exact
revenue opportunity, we see DPDP as a significant medium to long-term growth driver for our
enterprise business. In fact, we do believe that this should be matching our endpoint security
business very soon.
Sheetal Shah:
Okay, sir. Last two ques ons from my side. The employee cost has dipped INR 17 crore year-onyear. Any specific reason for this, sir?
Ankit Maheshwari:
So, hi, Sheetal. This is Ankit. We have been con nuously op mizing our cost. While we keep
our investments in R&D and sales, at the same me, we are also op mizing our cost and we
are seeing that reduc on in cost.
Sheetal Shah:
This will be a new run rate, sir?
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Ankit Maheshwari:
As Harish also men oned, we don't provide the guidance. But yes, we have op mized our cost.
Wherever we feel there is a gap, we are also adding headcount, adding investments. But it's in
the similar range at this point in me.
Sheetal Shah:
No worry, sir. As always, asked much more, but got very li le. No problem, sir. And the last to
conclude, sir, pa ence of the shareholders has been severely tested since long, and we hope
and best wishes to the management to do something big and construc ve to bring glory to the
company and the shareholder both. Thank you very much, sir.
Ankit Maheshwari:
Thank you.
Moderator:
Thank you. Ladies and gentlemen, to ask a ques on, please press star and one. A reminder to
all the par cipants, anyone who wishes to ask a ques on, please press star and one. We will
take our next ques on from the line of Shubham Sahani from RSPN Ventures. Please go ahead.
Shubham Sahani:
Hello, am I audible?
Moderator:
Yes.
Shubham Sahani:
Thank you for the opportunity. I wanted to ask, with the whole tailwind of the AI coming into
the sector of cybersecurity, because of this, the a ack surface has increased significantly, as Mr.
Sanjay told us at the start of the call. Do you think any consumer tailwinds here and any demand
increase from the consumer side of the business because of the increase in AI?
Sanjay Katkar:
Thank you, Shubham. I don't see anything coming from consumer side, the demand. I haven't
seen change in the demand side, unless there is a targeted a ack that targets individuals. But
that is what I don't envisage in short me for now. But definitely, AI-based a acks is crea ng
good awareness among large enterprises, mid-market. Since we all know that in India, lot of
digi za on is happening and people are on the transforma on journey towards adding AI
agents in their organiza on and op mizing the cost, that's where the a acks will start seeing
more and more. We are seeing some kind of a acks happening on that front. I don't see this
ge ng affected on consumer side.
Shubham Sahani:
To add to this on the second part of the business, which is the enterprise business, I wanted to
ask that now since there are so many a acks on small and medium-sized businesses, does it
look a very good scenario for the company to sell their products or add any new products to
the stack, which would essen ally increase the revenue? Any good opportunity do you see
there?
Sanjay Katkar:
I will give you some insight. If you see, small and medium-sized businesses have been using
tradi onal security and not inves ng too much on cybersecurity with investment primarily in
endpoint security or an virus. But with the advent of AI, the a acks are going to become more
sophis cated, faster, and the response needs to match that. That is where the awareness as
well as the investment into cybersecurity is going to increase in coming years, I will say. This is
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a good sign for a company like us because then it does not depend only on tradi onal security
or opera ng system security, but it will be a more important market for players like us where
we have these kinds of sophis cated technologies that can take care of automated AI a ack
side.
Shubham Sahani:
Also one last ques on. If the businesses in India are not likely to spend very high in the short
term, do you see any interna onal markets where you have a scope to expand to small and
medium businesses and generate more revenue? Any selec ve interna onal expansion plans?
Harish Kumar:
Hello, Shubham. Harish here. Yes, interna onal con nues to be an important aspect to our
business. As I said in my commentary, we want to be very careful on which geographies and
countries we enter into and operate. Currently, we are present in more than, I think, 70+
countries we are present in. We do see some key markets like Italy, Philippines, et cetera, giving
us constant revenue along with South America. This will con nue to be our focus. We will keep
evalua ng which other territories and countries we should expand ourselves as we go forward.
Shubham Sahani:
Could you tell me the split between revenue from interna onal and Indian clients?
Harish Kumar:
We are not repor ng it at this point in me, the domes c and interna onal. We may look at it
in the future, but currently we do not have any repor ng on that.
Shubham Sahani:
Okay. Thank you.
Moderator:
Thank you. A reminder to all the par cipants, if you wish to ask a ques on, please press star
and one. As there are no further ques ons from the par cipants, I now hand the conference
back to management for closing comments.
Ankit Maheshwari:
Thank you, everyone, and wish you a very Happy Diwali. Look forward. Thank you.
Sanjay Katkar:
Thank you.
Harish Kumar:
Thanks a lot.
Moderator:
Thank you very much, sir. On behalf of Quick Heal Technologies Limited, that concludes this
conference. Thank you all for joining us today, and you may now disconnect your lines.
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