Quick Heal Technologies Ltd. (QUICKHEAL) AI Stock Analysis

• Market Cap: ₹10.18B
• Dividend Yield: 1.08%
• Average Volume (3M): 72.37K
• Price to Earnings (P/E): 177.3
• Beta (1Y): 1.77
• 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: 54,214,924
• 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: ₹179.00 ▼(-33.41% Downside)

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

Balance sheet strength

The company's conservatively structured balance sheet with negligible debt provides durable financial flexibility. This supports capital allocation, M&A optionality, and the ability to sustain operations or invest during periods of weak cash flow without immediate refinancing pressure.

Recurring revenue via licenses and channels

A subscription/license model with channel-led distribution and renewal-driven revenue creates recurring cash streams and customer stickiness. Over 2-6 months this structural mix tempers volatility, supports retention-focused growth, and underpins predictable contract renewals if execution is maintained.

High gross margins

Sustained high gross margins reflect software economics and pricing power for endpoint security products. This durable margin base can fund R&D and sales investment and allows operating leverage to meaningfully improve profitability if fixed costs and customer acquisition efficiency are restored.

Negative Factors

Top-line decline

A multi-year revenue downtrend reduces scale and weakens the firm's ability to absorb fixed costs, limiting margin recovery. Continued declines over several quarters erode competitive positioning, hinder renewal momentum, and make long-term growth targets harder to achieve without strategic product or market fixes.

Operating profitability deterioration

Negative EBIT/EBITDA and a sharp net margin compression signal structural issues in cost control, pricing, or product mix. Persistently weak operating profitability undermines free cash generation and the firm's ability to reinvest, making durable recovery contingent on sustained cost or revenue improvements.

Weakened cash generation

A reversal to negative OCF and FCF raises execution and liquidity risk: it constrains reinvestment, increases reliance on balance sheet reserves, and reduces buffer for cyclical shocks. Unless cash conversion normalizes, capital allocation and dividend/repurchase capacity will remain limited.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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
SAKSOFT	72 Outperform	₹22.92B	17.56	―	0.42%	21.17%	27.66%
KERNEX	66 Neutral	₹21.07B	39.16	―	―	155.87%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BCG	59 Neutral	₹18.56B	2.30	―	―	―	―
IKIO	54 Neutral	₹11.58B	59.81	―	0.55%	11.73%	-64.05%
SUBEXLTD	46 Neutral	₹5.25B	-100.00	―	―	-9.53%	96.99%
QUICKHEAL	41 Neutral	₹10.18B	177.31	―	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.

Quick Heal Secures Major Cybersecurity Contract with NFSU

Quick Heal Technologies Ltd. has secured a significant contract with the NFSU Research and Innovation Council to implement Integrated Cyber Security Solutions. This five-year domestic engagement, valued at INR 64.25 crore, strengthens Quick Heal’s market position and is expected to lead to similar future projects, enhancing its collaboration with government entities.

Quick Heal Secures Major Cybersecurity Contract with NFSU

Quick Heal Technologies Ltd. has secured a significant contract with the NFSU Research and Innovation Council to implement integrated cybersecurity solutions, valued at INR 64.25 crore over five years. This contract enhances Quick Heal’s leadership in cybersecurity and is expected to lead to more similar projects, reinforcing its strategic objectives and commitment to advancing cybersecurity solutions.