Quick Heal Technologies (QUICKHEAL) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 delivered strong growth with revenue up 37% YoY to INR 70.3 Cr, EBITDA up 117%, and PAT at INR 4.0 Cr, reflecting robust consumer and enterprise performance.

• The business mix continues to evolve, with enterprise now contributing 42-43% and consumer 57-58%.

• Maintains leadership in Indian consumer antivirus with over 30% market share and robust distribution.

• Strategic initiatives, product innovation, and expansion into new markets contributed to performance.

• Significant investments in enterprise cybersecurity, with Seqrite crossing ₹100 Cr in revenue.

Financial highlights

• Q1 FY25 revenue reached INR 70.3 Cr, up 37% YoY; EBITDA was INR 2.6 Cr, a turnaround from negative INR 15 Cr last year; PAT stood at INR 4.0 Cr.

• Consumer revenue was INR 43.9 Cr (+60.2% YoY); enterprise revenue was INR 32.5 Cr (+22.6% YoY).

• Gross margin remained high at 97.7%; PAT margin improved to 5.7% from -24.8% YoY.

• R&D expenses were INR 35 Cr, about 49% of revenue, mainly driven by manpower and AWS costs.

• EPS for Q1 FY25 was INR 0.75 (basic) and INR 0.74 (diluted); paid-up equity share capital at INR 53.54 Cr.

Outlook and guidance

• Management expects continued growth in both consumer and enterprise segments, with new product launches and increased market adoption.

• Focus on next-generation products, including XDR, Zero Trust, Data Privacy, and Threat Intelligence.

• Anticipates a 4-5% increase in IT/cybersecurity spend industry-wide due to the upcoming DPDP Act.

• No specific margin or revenue guidance disclosed, but focus remains on profitable growth and widening EBITDA margins as revenue scales.

• Expansion strategies and strategic partnerships expected to deepen market penetration.