Quick Heal Technologies (QUICKHEAL) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 performance was below expectations due to underperformance in consumer and government verticals, but a healthy pipeline and strategic initiatives are expected to drive growth in FY26.

• Key product launches included AntiFraud.AI, Seqrite Malware Analysis Platform (SMAP), and Cyber Threat Intelligence solutions, with the first Threat Intel order secured.

• Strategic collaborations and MOUs with institutions like the Banking Institute of Rural Development, NFSU, and IIM Nagpur are enhancing R&D and market reach.

• Order book rose to INR 7.18 crore as of Jan 2025, up from INR 0.35 crore in Sep 2024, and deferred revenue increased to INR 10 crore.

• Revenue for the quarter ended December 31, 2024, was INR 70.61 crore, down from INR 81.92 crore in the same quarter last year.

Financial highlights

• Q3 FY25 consolidated revenue was INR 71 crore, down 4% QoQ and 14% YoY, with 9M FY25 revenue at INR 214.4 crore, up 1.3% YoY.

• EBITDA for 9M FY25 was INR 1.9 crore; Q3 FY25 EBITDA was INR -3.8 crore.

• Q3 FY25 PAT was INR 0.1 crore; 9M FY25 PAT was INR 8.3 crore, down 18.7% YoY.

• Consumer revenue declined 20.5% YoY to INR 146.6 crore; enterprise revenue grew 2.3% YoY to INR 89 crore.

• Marketing and admin expenses increased due to one-time product launch costs and higher provisions for doubtful debts.

Outlook and guidance

• Management remains confident about FY26, citing a strong order pipeline, new product launches, and increased RFP activity, especially in data privacy.

• The company expects continued investments in R&D and marketing to support long-term growth, despite short-term profitability impact.

• Expanding product stack and geographic reach, with a foundation for global expansion and targeting higher customer segments.

• Revenue from new products and order book is expected to be incremental to the existing run-rate business.

• The Board has proposed the reappointment of the Chairman & Managing Director and Joint Managing Director, effective April 1, 2025.