28-Oct-2026 21:47:15

QUICKHEALAcquisition and merger

QUICK HEAL TECHNOLOGIES Q2 CONCALL: ENTERPRISE CYBERSECURITY TARGETED TO EXCEED 80% OF REVENUE WITHIN 3 YEARS, Q2 EBITDA TURNS POSITIVE & DATA PRIVACY EMERGES AS A LONG-TERM GROWTH OPPORTUNITY

• MANAGEMENT EXPECTS ENTERPRISE CYBERSECURITY TO CONTRIBUTE MORE THAN 80% OF TOTAL REVENUE WITHIN APPROXIMATELY THREE YEARS, REFLECTING A STRATEGIC SHIFT AWAY FROM TRADITIONAL CONSUMER ANTIVIRUS • MANAGEMENT DID NOT PROVIDE NUMERICAL FY27 REVENUE GROWTH, EBITDA MARGIN OR PAT GUIDANCE, CITING THE ONGOING BUSINESS TRANSFORMATION • MANAGEMENT BELIEVES DATA PRIVACY SOLUTIONS COULD EVENTUALLY BECOME COMPARABLE IN SCALE TO ITS ENDPOINT SECURITY BUSINESS, BUT NO REVENUE TARGET OR TIMELINE WAS COMMITTED • MANAGEMENT EXPECTS AI-ASSISTED CYBERATTACKS, RANSOMWARE RISKS & INCREASING DIGITAL COMPLEXITY TO SUPPORT MEDIUM-TERM ENTERPRISE CYBERSECURITY DEMAND • MANAGEMENT PLANS TO FOCUS ENTERPRISE CUSTOMER ACQUISITION ON INDIAN SMES & MID-MARKET BUSINESSES, RATHER THAN COMPETING BROADLY FOR THE LARGEST MULTINATIONAL ACCOUNTS • MANAGEMENT AIMS TO IMPROVE ENTERPRISE REVENUE THROUGH HIGHER RENEWALS, CROSS-SELLING, NEW CUSTOMER WINS & BETTER MONETIZATION OF ITS EXPANDED PRODUCT PORTFOLIO • MANAGEMENT EXPECTS INDIA'S EVOLVING DIGITAL PERSONAL DATA PROTECTION FRAMEWORK TO CREATE OPPORTUNITIES FOR ENTERPRISE DATA PRIVACY & REGULATORY COMPLIANCE SOLUTIONS • MANAGEMENT PLANS TO CONTINUE SELECTIVE INVESTMENTS IN RESEARCH, PRODUCT DEVELOPMENT & ENTERPRISE SALES WHILE OPTIMIZING OPERATING EXPENSES • MANAGEMENT INTENDS TO PRIORITIZE SELECT INTERNATIONAL MARKETS WITH STRONG COMMERCIAL POTENTIAL RATHER THAN PURSUING BROAD GEOGRAPHICAL EXPANSION • MANAGEMENT EXPECTS CONSUMER ANTIVIRUS TO REMAIN STRUCTURALLY CHALLENGED BY FREE & BUILT-IN OPERATING SYSTEM SECURITY SOLUTIONS • MANAGEMENT DOES NOT EXPECT AI-RELATED CYBER THREATS TO GENERATE A MEANINGFUL NEAR-TERM RECOVERY IN CONSUMER ANTIVIRUS DEMAND • MANAGEMENT IS STRENGTHENING DISTRIBUTOR CREDIT CONTROLS & COLLECTION DISCIPLINE, EVEN IF TIGHTER TERMS TEMPORARILY RESTRICT CONSUMER SALES • MANAGEMENT AIMS TO IMPROVE RECEIVABLE QUALITY, CHANNEL ECONOMICS & CASH CONVERSION THROUGH STRICTER CREDIT MANAGEMENT • Q2 CONSOLIDATED REVENUE STOOD AT ₹65 CR, GROWING 44% QOQ BUT DECLINING 22% YOY, INDICATING SEQUENTIAL RECOVERY WITHOUT A RETURN TO ANNUAL GROWTH • Q2 EBITDA TURNED POSITIVE AT ₹2.3 CR VS A LOSS OF ₹17.6 CR IN Q1 FY27, WITH EBITDA MARGIN RECOVERING TO APPROXIMATELY 3.5% • Q2 PAT RECOVERED TO ₹5.8 CR VS A LOSS OF ₹5.3 CR IN Q1 FY27, WITH REPORTED PAT MARGIN OF APPROXIMATELY 9% • OPERATING EXPENDITURE EXCLUDING DEPRECIATION STOOD AT APPROXIMATELY ₹63 CR, REMAINING BROADLY STABLE SEQUENTIALLY • ENTERPRISE CYBERSECURITY REVENUE REACHED APPROXIMATELY ₹35 CR, GROWING 18% QOQ BUT DECLINING 4% YOY • ENTERPRISE ORDER BOOK EXCEEDED ₹57 CR, PROVIDING POTENTIAL REVENUE VISIBILITY SUBJECT TO ORDER EXECUTION & CUSTOMER DEPLOYMENT • MANAGEMENT HIGHLIGHTED STRATEGIC ENTERPRISE CUSTOMER WINS ACROSS DEFENSE, BANKING & FINANCIAL SERVICES, AND A LARGE IT SERVICES COMPANY • SEQRITE IS EXPANDING BEYOND TRADITIONAL ENDPOINT ANTIVIRUS INTO ENDPOINT DETECTION & RESPONSE, EXTENDED DETECTION & RESPONSE, DATA LOSS PREVENTION & EXPOSURE MANAGEMENT • MANAGEMENT IS DEVELOPING A BROADER ENTERPRISE SECURITY PLATFORM COVERING RANSOMWARE RESILIENCE, DATA PRIVACY, COMPLIANCE & ADVANCED THREAT DETECTION • CONSUMER BUSINESS REVENUE WAS REPORTED AT APPROXIMATELY ₹36 CR, GROWING 86% QOQ BUT DECLINING 40% YOY • CONSUMER ANTIVIRUS REVENUE CONTINUES TO FACE PRESSURE FROM BUILT-IN WINDOWS SECURITY, FREE PROTECTION PRODUCTS & CHANGING CUSTOMER PURCHASE BEHAVIOUR • MANAGEMENT IS EXPLORING BROADER CONSUMER DIGITAL SAFETY OFFERINGS, ALTHOUGH NO MATERIAL NEAR-TERM REVENUE CONTRIBUTION WAS QUANTIFIED • TOTAL RECEIVABLES DECLINED TO ₹98 CR FROM ₹107 CR IN Q1 & ₹176 CR A YEAR EARLIER, REFLECTING SIGNIFICANT IMPROVEMENT IN COLLECTIONS • DEFERRED REVENUE STOOD AT APPROXIMATELY ₹48 CR VS ₹52 CR IN Q1, MAKING SUBSCRIPTION RENEWALS & FUTURE CONTRACT BILLINGS IMPORTANT MONITORABLES • COMPANY REMAINS DEBT-FREE, PROVIDING FINANCIAL FLEXIBILITY TO FUND ENTERPRISE PRODUCT DEVELOPMENT & BUSINESS TRANSFORMATION • MANAGEMENT INDICATED INTERNATIONAL OPERATIONS SPAN MORE THAN 70 COUNTRIES, INCLUDING MARKETS SUCH AS ITALY, THE PHILIPPINES & PARTS OF SOUTH AMERICA • MANAGEMENT EXPECTS DATA PRIVACY ADOPTION TO INCREASE AS ENTERPRISES & PUBLIC-SECTOR CUSTOMERS STRENGTHEN DATA PROTECTION & COMPLIANCE CAPABILITIES • MANAGEMENT'S IMMEDIATE PRIORITY IS TO CONVERT PRODUCT INVESTMENTS & ENTERPRISE ORDER WINS INTO RECURRING REVENUE, HIGHER CUSTOMER RETENTION & SUSTAINABLE PROFITABILITY • SUSTAINED ENTERPRISE REVENUE GROWTH REMAINS UNPROVEN, WITH Q2 ENTERPRISE SALES STILL 4% BELOW THE PREVIOUS YEAR DESPITE SEQUENTIAL IMPROVEMENT • REPORTED ENTERPRISE REVENUE OF ₹35 CR & CONSUMER REVENUE OF ₹36 CR TOTAL ₹71 CR, WHICH DOES NOT RECONCILE WITH CONSOLIDATED REVENUE OF ₹65 CR; SEGMENT FIGURES REQUIRE VERIFICATION • KEY RISKS INCLUDE CONTINUED CONSUMER REVENUE EROSION, INTENSE ENTERPRISE COMPETITION, LIMITED SME CYBERSECURITY BUDGETS & DELAYS IN MONETIZING NEW PRODUCTS • MANAGEMENT'S STRATEGIC OUTLOOK IS CAUTIOUSLY POSITIVE, WITH THE MAIN MONITORABLES BEING ENTERPRISE REVENUE TURNING POSITIVE YOY, CONVERSION OF THE ₹57 CR-PLUS ORDER BOOK, DATA PRIVACY ADOPTION & SUSTAINED POSITIVE EBITDA

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