Quick Heal Tech Q2 FY27 Earnings Call — Analysis (NSE: QUICKHEAL)

Quick Heal posted Q2FY27 revenue of ₹65 Cr (-22% YoY, +44% QoQ) and turned profitable with PAT of ₹5.8 Cr, as enterprise growth partially cushioned ongoing consumer antivirus headwinds.

3 Nov 2026 · Analysis by Alpha Inflection

Result quality: poor — Revenue declined. Management sentiment: neutral.

The take

Q2FY27 Consolidated Revenue ₹65 Cr ( -22% YoY ) . New guidance — FY30 enterprise revenue share beyond 80% . New story: Consumer to Enterprise Strategic Shift .

Results

Revenue stood at ₹65 Cr (-22% YoY, +44% QoQ); EBITDA turned positive to ₹2.3 Cr from a ₹17.6 Cr loss in Q1, with PAT at ₹5.8 Cr.

Financial highlights

Guidance

Management expects enterprise contribution to cross 80% of total revenue within three years, while explicitly declining to provide specific revenue or margin guidance.

What management committed to

• The contribution from [enterprise revenue] will grow beyond 80% [of total revenue] for at least the coming three years. — beyond 80%, FY30
• [DPDP data privacy and protection offering revenue] should be matching our [endpoint security business] very soon. — matching our endpoint security business, very soon

Key themes

Enterprise pivot and working capital rationalisation

How the narrative shifted

• Consumer to Enterprise Strategic Shift: Transitioning from a shrinking legacy B2C antivirus franchise to an enterprise cybersecurity and compliance (Seqrite) model targeting SMBs.
• Operating Cost Rationalisation: Tightening employee expenses and operating overheads to restore EBITDA profitability amidst top-line pressure.
• Working Capital and Channel Clean-up: Enforcing strict credit terms with channel partners to slash receivables by ₹78 Cr YoY at the expense of near-term volume.
• OS Vendor Disintermediation Headwind: Microsoft OS default security features causing structural decline in standalone consumer PC antivirus demand globally.

Operational commentary

• Secured strategic enterprise wins across defence, BFSI, and a large IT services company for new-generation products in H1FY27.
• Maintained strong momentum in government segment procurement for cybersecurity offerings.
• Tightened credit controls and channel commercial terms in the consumer business to improve cash collection and working capital quality, intentionally trading off near-term volumes.
• Targeting SMB, mid-market, and micro-enterprises for Seqrite (EPP, EDR, XDR) while deliberately avoiding Tier-1 large enterprise segments dominated by global MNCs and Gartner-led procurement.
• Positioning DPDP-compliant data privacy and DLP solutions as a major new growth vertical alongside endpoint security.

Analyst Q&A

• Q. What is the company's financial aspiration over the next 3-4 years in terms of revenue and margins given 10 years of flat sales?

  Declined to disclose margin and revenue outlook as per company policy, but noted enterprise contribution is expected to cross 80% of revenue in 3 years.

• Q. What is the expected revenue potential and monetization timeline from the DPDP data privacy offering?

  Declined to give product-level revenue projections, but stated DPDP is seen as a major medium-to-long term growth driver that should match the endpoint security business size.

• Q. What caused the ₹17 Cr YoY drop in employee costs and is this the new sustainable run rate?

  Attributed the decline to ongoing cost optimization while sustaining R&D/sales investment; confirmed run rate should remain in a similar range with selective hiring.

• Q. Could management disclose the revenue split between domestic and international markets?

  Declined to provide the geographic revenue split, stating it is not reported currently.

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