Quick Heal Technologies Ltd. (QUICKHEAL) AI Stock Analysis

• Market Cap: ₹9.00B
• Dividend Yield: 1.08%
• Average Volume (3M): 72.37K
• Price to Earnings (P/E): 156.9
• Beta (1Y): 1.74
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 996
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.22
• Shares Outstanding: 54,215,076
• 10 Day Avg. Volume: 143,023
• 30 Day Avg. Volume: 72,369
• PEG Ratio: -4.13
• Price to Book (P/B): 3.74
• Price to Sales (P/S): 5.91
• P/FCF Ratio: -45.02
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: ₹159.00 ▼(-40.85% Downside)
• Action: Reiterated Date: 01/31/26
• Date: Action: Reiterated 01/31/26

The score is held down primarily by weakening financial performance (declining revenue, negative operating profitability, and negative operating/free cash flow) and poor technicals (price below key moving averages with negative MACD and very weak RSI/Stoch). Valuation further pressures the score due to an extremely high P/E, with only limited offset from the dividend yield and a strong low-debt balance sheet.

Positive Factors

Conservative balance sheet / low leverage

Minimal leverage and a sizable equity base provide durable financial flexibility. With debt near zero the company can absorb short-term cash stress, fund product investments or marketing, and avoid refinancing risk—supporting stability over the next several quarters.

Recurring licensing and channel-led revenue model

A subscription/license model with renewals and a broad channel/reseller network creates recurring revenue and stickiness. This structural mix improves predictability of cashflows and supports retention-led growth if renewal rates and channel execution hold.

High gross margins and prior cash generation history

Sustained high gross margins indicate inherent product economics and pricing power; combined with a track record of positive operating cash flow in prior years, this suggests the company can restore profitable cash generation if it regains operating leverage.

Negative Factors

Revenue decline and compressing margins

Falling revenue and sharply weaker operating profitability signal demand or competitive pressure and reduce room to absorb fixed costs. Persistent top-line weakness undermines margin recovery and could force structural cost or product strategy changes over multiple quarters.

Negative operating and free cash flow in FY2025

A reversal to negative OCF and FCF increases execution risk and limits reinvestment capacity. Even with low leverage, sustained cash burn can necessitate spending cuts, slower product development, or outside financing, all of which impair strategic flexibility.

Weaker returns on capital and operating leverage erosion

A ROE near 1% and deteriorated operating margins indicate the firm is struggling to convert assets and revenue into shareholder returns. This suggests structural margin pressure or cost inefficiencies that may take multiple quarters to correct.

Quick Heal Technologies Ltd. Business Overview & Revenue Model

Company Description

Quick Heal Technologies Limited provides security software products and solutions to consumers, small businesses, government establishments, and corporate houses in India and internationally. The company operates through Retail, Enterprise and Government, and Mobile segments. Its products portfolio includes GoDeep.AI, a malware hunting engine; Seqrite Hawk, a cybersecurity solution; and Hawk Eye, a cloud-based platform for enterprise grade centralized security management. The company also offers technical and after-sales support services. It sells its products through a network of service providers, system integrators, resellers, and distributors. The company offers its products under Seqrite brand. Quick Heal Technologies Limited was incorporated in 1995 and is based in Pune, India.

How the Company Makes Money

Quick Heal Technologies Ltd. Financial Statement Overview

Summary

Despite a strong, low-debt balance sheet (Balance Sheet Score 86), fundamentals have weakened: revenue declined in FY2025 and profitability deteriorated to negative EBIT/EBITDA margins with a much lower net margin (Income Statement Score 41). Cash generation is a key risk, with FY2025 operating cash flow and free cash flow turning negative (Cash Flow Score 33).

Income Statement

Revenue has been largely flat to down recently, with FY2025 showing a ~5.1% decline versus FY2024. Profitability has weakened materially: FY2025 posted negative EBIT and EBITDA margins while net margin compressed to ~1.8% (down from ~8.3% in FY2024). The business still shows very high gross margin in FY2025, but the sharp deterioration at the operating line suggests elevated operating costs and weaker operating leverage, creating an uneven earnings profile versus the stronger profitability seen in earlier years (FY2020–FY2021).

Balance Sheet

The balance sheet is conservatively structured with minimal leverage (debt-to-equity near zero; FY2025 debt is negligible relative to equity). Equity remains sizable and assets are stable, which supports financial flexibility. The main drawback is softer returns on equity in the most recent year (FY2025 ROE ~1.1%), reflecting the weaker earnings base rather than balance-sheet strain.

Cash Flow

Cash generation has weakened meaningfully: FY2025 operating cash flow and free cash flow were both negative, a sharp reversal from positive cash generation in FY2024 and earlier years. This raises questions around working-capital/investment demands and the quality/consistency of earnings conversion. While cash flow was healthy historically (FY2020–FY2022), the latest year’s cash burn increases near-term execution risk until cash generation stabilizes.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.66B	2.80B	2.92B	2.78B	3.42B	3.33B
Gross Profit	2.63B	2.72B	1.17B	1.14B	1.92B	2.04B
EBITDA	25.00M	-65.90M	373.00M	227.70M	1.07B	1.45B
Net Income	-45.00M	50.40M	242.40M	64.00M	831.90M	1.07B
Balance Sheet
Total Assets	0.00	5.25B	5.13B	4.93B	7.16B	8.27B
Cash, Cash Equivalents and Short-Term Investments	1.93B	1.93B	2.20B	1.88B	3.54B	4.67B
Total Debt	0.00	3.10M	0.00	0.00	0.00	0.00
Total Liabilities	-4.41B	835.60M	756.30M	735.90M	882.50M	752.10M
Stockholders Equity	4.41B	4.41B	4.37B	4.20B	6.28B	7.51B
Cash Flow
Free Cash Flow	0.00	-367.20M	106.30M	267.30M	741.30M	897.60M
Operating Cash Flow	0.00	-223.00M	181.90M	308.10M	799.80M	986.20M
Investing Cash Flow	0.00	159.70M	61.50M	1.85B	1.26B	-922.90M
Financing Cash Flow	0.00	-103.20M	16.00M	-2.12B	-2.14B	1.00M

Quick Heal Technologies Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCG	71 Outperform	₹21.59B	2.67	―	―	―	―
SAKSOFT	68 Neutral	₹18.78B	14.18	―	0.42%	21.17%	27.66%
KERNEX	66 Neutral	₹18.12B	34.33	―	―	155.87%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IKIO	54 Neutral	₹10.92B	52.86	―	0.55%	11.73%	-64.05%
SUBEXLTD	46 Neutral	₹5.14B	508.33	―	―	-9.53%	96.99%
QUICKHEAL	41 Neutral	₹9.00B	156.86	―	1.08%	―	―

Quick Heal Technologies Ltd. Corporate Events

Quick Heal Board Clears Q3 FY26 Results, Senior Leadership Overhaul and Promoter Reclassification

Quick Heal Technologies Ltd. said its board has approved the unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, along with the related limited review reports from its statutory auditors. The board also cleared several senior management changes, appointing Savita Nehra as Vice President – People and Culture, Amartya Mukherjee as Vice President and Head of Delivery, promoting Netra Deshpande to Head of Engineering, and appointing Nitin Bhogan as Director – Cyber Awareness, moves that signal a strengthening of leadership across key operational and technical functions. In addition, the board approved a request from Gagan Bharari Enterprises LLP to be reclassified from the Promoter and Promoter Group category to Public Shareholders, subject to stock exchange approvals, a shift that could modestly alter the company’s shareholding structure and float.

Quick Heal Board Clears Q3 FY26 Results, Strengthens Leadership and Backs Promoter Reclassification

Quick Heal Technologies Ltd. said its board, meeting via video conference on January 29, 2026, approved the unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, along with the statutory auditors’ limited review reports, and released an accompanying press note and investor presentation. The board also strengthened its senior leadership bench with the appointment of new vice presidents for people and culture and for delivery, the promotion of a new head of engineering, and the appointment of a director for cyber awareness, while additionally backing the reclassification request of Gagan Bharari Enterprises LLP from ‘promoter and promoter group’ to ‘public shareholder’ status, subject to stock exchange approval, a move that could modestly alter the company’s shareholding structure and public float.