Quick Heal Technologies Ltd (QUICKHEAL) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day and welcome to the Q2 and H1 FY27 conference call of Quick Heal Technologies Limited, hosted by Valorem Advisors. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation 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 (Valorem Advisors): 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 relations of Quick Heal Technologies Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings conference call for the second quarter and first half of the financial year 2027. Before we begin, let me mention a quick cautionary statement. Some of the statements mentioned in today's earnings call may be forward-looking in nature. Such forward-looking statements are subject to risk and uncertainties which could cause actual results to differ from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to the management. Audiences are cautioned 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 participating with us in today's earnings call. We have with us Dr. Sanjay Katkar, Joint Managing Director; Mr. Harish Kumar, Chief Executive Officer; and Mr. Ankit Maheshwari, the Chief Financial Officer. Without any further ado, I request Dr. Sanjay to start with his opening remarks. Thank you and over to you, sir.
Sanjay Katkar (Quick Heal Technologies Ltd): Thank you. This is Sanjay Katkar. Good evening everyone, and thank you for joining us. I would like to begin with a perspective on how the cybersecurity environment is evolving, and how Quick Heal and Seqrite are responding to that change. The attack surface is expanding, technology environments are becoming more disturb- distributed, and customers are increasingly considering cybersecurity together with data protection and privacy. For us, this creates both a responsibility and a larger opportunity. Over the years, we have built deep capabilities in threat research, endpoint security, and cybersecurity technology. The strategic evolution now underway is to apply those strengths to a broader set of customers' problem. In Enterprise, this means moving beyond our traditional strength in endpoint protection. Our portfolio is expanding into data privacy, exposure management, and ransomware resilience, alongside our broader cybersecurity capabilities. These are not isolated product bets. We are building an integrated architecture through which our technology capabilities can increasingly work together, helping customers simplify security operations while enabling Seqrite to address a larger share of their cybersecurity requirements. This evolution is also changing how we think about product development. Customers do not want security technologies that operate in isolation or add further complexity to their environment. They expect better visibility, faster response, and solutions that can be adopted without creating additional operational burden. Our product direction is therefore guided by three principles: deepen protection in the areas where we already have strong capabilities, connect adjacent technologies into a more coherent security architecture, and make the resulting solution simpler for customers to consume and manage. Our threat
Sanjay Katkar (Quick Heal Technologies Ltd): research at Securite Lab, remains central to this approach. The telemetry generated across our installed base, gives our teams a continued view of how attacks are changing. That insight is applied across detection, response, and product design, helping us improve established products while shaping newer capabilities. The opportunity is particularly relevant in India where organizations across segments are digitizing rapidly, while facing increasingly sophisticated threats and more demanding data protection environments. Our local research depth, established customer relationships, and expanding portfolio, give us a differentiated foundation from which to address this opportunity. During H1 FY '27, we secured strategic wins across defense, BFSI, and a large IT services company through our new generation products. We also continued to see momentum in the government business. Beyond the immediate commercial value, such engagements are important learning opportunities. They allow us to validate our products in complex operating environments, sharpen deployment models, and build reference use cases that can support wider adoption across similar customer segments. It is about commercializing innovation, packaging our capabilities around specific customer problems, simplifying adoption, and achieving scale. That requires close alignment across engineering, product management, and go-to-market. And this is where the organization is increasingly focused. We will continue to invest in research and innovation because the threat environment does not stand still. At the same time, we will judge progress by how effectively our technology improves customer relevance and translates into scalable business outcomes. With that perspective, I will hand over to Harish.
Harish Kumar (Quick Heal Technologies Ltd): Thank you, Sanjay, and good evening, everyone. Q2 is a step in the right direction. 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 execution. Over the last few quarters, we have invested significantly in our product portfolio, technology capabilities, and organization. The focus now is to translate these investments into customer acquisition, higher monetization of portfolio, and stronger productivity from our go-to-market engine. Let me start with enterprise. We are seeing encouraging traction in the enterprise business, including strategic wins across defense, BFSI, and a large IT services company through our new-generation products, while government continues to be an important market for us. Next phase for Securite is about converting a broader portfolio into a larger share of customer cyber security and privacy spend. Our approach is differentiated by product maturity. In established categories, particularly in-flight security, the focus is on protecting the install base, improving renewables, and increasing process. For newer offerings, our priority is different. We need to establish stronger customer references, demonstrate the effectiveness of the solution in real-world environments, and create repeatable sales motions. We will scale investment behind these offerings as customer validation strengthens. Internationally, we will remain selective. We would rather build meaningful positions in a smaller number of markets than spread our resources too thin. In consumer, our actions are more conscious. The business has a strong franchise and distribution footprint, but growth cannot come at the expense of business quality. We have therefore tightened credit and commercial controls. This may moderate some near-term volume, but we believe it is the right tradeoff to improve receivables quality, channel discipline, and the economics of the business. We are also beginning to extend the proposition beyond conventional antivirus as consumers face a broader range of digital digital risks. We will approach these opportunities selectively without diluting our focus on the core. Across enterprise and consumer, therefore, the agenda is quite clear. In enterprise, we need to monetize the breadth of
Harish Kumar (Quick Heal Technologies Ltd): In consumer, we need to strengthen the quality and productivity of the franchise. And across both the businesses, we need greater conversion, productivity, and predictability. We are consequently becoming more selective about where we allocate people, capital, and management attention. Innovation will remain fundamental to Quick Heal, but at this stage our journey, successful innovation must increasingly be visible in customer adoption and commercial outcomes. That is the execution discipline we are bringing to the business. With that, I will hand over to Ankit to take you through the financial performance.
Ankit Maheshwari (Quick Heal Technologies Ltd): 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 Q2 FY '27, consolidated revenue stood at 65 crore, representing quarter-on-quarter growth of 44% over Q1. On a year-on-year basis, revenue declined by 22%. The quarter-on-quarter growth was visible across both businesses. Enterprise revenue was 35 crores, increasing 18% quarter-on-quarter and declining 4% year-on-year. Consumer revenue was 36 crore, increasing 86% quarter-on-quarter and declining 40% year-on-year. Total expenditure, excluding depreciation, remained flat at 63 crores in Q2. The combination of higher revenue and a lower operating cost base resulted in EBITDA improving from a loss of 17.6 crore in Q1 to a positive 2.3 crore in Q2. PAT was 5.8 crore, compared with a loss of 5.3 crore in Q1, resulting in a PAT margin of 9%. Our balance sheet remains strong and debt-free, providing us with the flexibility to continue investing in R&D and market expansion opportunities. Total receivables declined to 98 crore from 107 crore at the end of Q1. The comparable figure in Q2 FY '26 was 176 crore. This represents a reduction of 78 crores in total receivables over the course of one year, due to our tightened credit control with our partners. Deferred revenue stood at 48 crore, compared with 52 crore in Q1 FY '27, while the enterprise order book remained above 57 crores. Our financial priorities are to maintain discipline on the cost base, continue improving collections and working capital, and translate revenue growth into consistent operating leverage and cash generation. With a strong foundation and a clear strategic roadmap, we remain committed to deliver consistent and sustainable growth in the future. Thank you. We will now be happy to take your questions.
Moderator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all the participants, if you wish to ask a question, please press star and one. The first question is from the line of Sheetal Shah, an individual investor. Please go ahead.
Sheetal Shah: Am I audible, sir?
Ankit Maheshwari (Quick Heal Technologies Ltd): You're audible.
Sanjay Katkar (Quick Heal Technologies Ltd): Yes.
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