Quick Heal Tech Q2 FY27 Results (NSE: QUICKHEAL)
Signal: Revenue declined
The read
The quarter marks a QoQ PAT swing from a ₹5.28 Cr loss to ₹5.80 Cr profit, but the trajectory remains weak: revenue declined 22.3% YoY for the second consecutive quarter, employee costs fell only 14.6%, and ₹8.34 Cr of other income exceeded the ₹4.01 Cr operating loss before other income.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹64.93 Cr | -22.26% | +44.32% |
| Net profit | ₹5.8 Cr | -26.67% | |
| EPS | ₹1.03 | -27.97% | |
| EBIT margin | N/A |
P&L walk
Revenue declined 22.3% YoY to ₹64.93 Cr, while employee expense fell only 14.6% to ₹41.47 Cr; the resulting operating weakness was offset by ₹8.34 Cr of other income, producing ₹5.80 Cr PAT despite the underlying cost base exceeding operating revenue.
Segments
The group reports one operating segment, cyber security platform; India generated ₹61.49 Cr, or 94.7% of quarterly revenue, while outside-India revenue fell 39.4% YoY to ₹3.44 Cr and dragged the geographic mix.
Key positives
- PAT recovered to ₹5.80 Cr from a ₹5.28 Cr loss QoQ, supported by a ₹1.47 Cr tax benefit and ₹8.34 Cr of other income.
- H1 operating cash flow was ₹39.59 Cr versus -₹5.43 Cr YoY, with trade receivables reducing by ₹39.40 Cr.
- Non-current segment assets increased 20.5% to ₹163.56 Cr while H1 depreciation rose 54.3% to ₹9.63 Cr, a clean depreciation-to-capex signal.
Key concerns
- Revenue fell 22.3% YoY to ₹64.93 Cr, with India down 21.0% and outside-India revenue down 39.4%.
- Employee expense declined only 14.6% YoY to ₹41.47 Cr, leaving employee cost at 63.86% of revenue despite the revenue contraction.
- The ₹5.80 Cr PAT was dependent on ₹8.34 Cr of other income because operating revenue of ₹64.93 Cr was below total expenses of ₹68.94 Cr.
Research and educational content only. Not investment advice.