Quick Heal Technologies Ltd. (QUICKHEAL) AI Stock Analysis

• Market Cap: ₹7.84B
• Dividend Yield: 1.08%
• Average Volume (3M): 72.37K
• Price to Earnings (P/E): 54.5
• Beta (1Y): 1.64
• 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: 54,233,090
• 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: 45 Neutral
• Price Target: ₹147.00 ▼(-45.31% Downside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is pressured primarily by deteriorating financial performance (negative operating profitability and negative operating/free cash flow in FY2025) and bearish technicals (price below all major DMAs with negative MACD). A strong, low-debt balance sheet is the key stabilizer, but high valuation (P/E ~54.5) offers limited downside support.

Positive Factors

Conservative balance sheet / minimal leverage

A near-zero debt profile and sizable equity give the company durable financial flexibility, letting management fund R&D, support channel partners, or bridge cash burn without immediate refinancing. This stabilizes the business through cyclical weakness and supports strategic optionality.

High gross margins consistent with software model

Sustained high gross margins reflect scalable software economics and pricing power for endpoint products. Even if operating costs fluctuate, strong gross margins provide room for margin recovery as revenues stabilize, enabling long-term profitability improvements if operating leverage returns.

Recurring, channel-led licensing revenue model

A business built on license subscriptions, renewals and a broad channel network produces predictable recurring revenue and distribution scale. This structural model supports customer retention, recurring cash inflows and cost-effective go-to-market over multiple quarters to years.

Negative Factors

Declining revenue trend

A multi-year product or channel pressure is suggested by revenue decline, which reduces operating leverage and the ability to cover fixed costs. Persistent top-line contraction signals market share or demand challenges that can impair long-term margin recovery and strategic investment.

Deteriorated operating leverage / higher operating costs

Operating expenses rising relative to revenue has pushed EBIT/EBITDA margins negative. Weaker operating leverage means revenue swings disproportionately hit profits, making durable margin restoration dependent on either sustained revenue growth or structural cost reductions.

Negative operating and free cash flow

A reversal to negative OCF and FCF increases execution risk: management may need to draw reserves or limit investments. Over months this constrains R&D, channel support and sales programs, and reduces the buffer provided by the otherwise strong balance sheet if cash burn persists.

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 makes money primarily by selling cybersecurity software licenses and subscriptions for its consumer and business products. Key revenue streams include: (1) Consumer security products (under the Quick Heal brand): revenue is generated from paid licenses (typically time-bound) sold via retail and digital channels, including first-time purchases and renewals/upgrades. (2) Enterprise/SMB cybersecurity solutions (under the Seqrite brand): revenue is generated from licensing endpoint and related security solutions to organizations, commonly on an annual or multi-year basis, with income from renewals as contracts continue. (3) Channel-led distribution: a significant portion of sales is typically executed through distributors, resellers, and retail partners who market and sell licenses to end customers; the company recognizes revenue from these product sales through its channel network. (4) Maintenance/renewals and allied services: ongoing renewals of expiring licenses and any associated support/maintenance components contribute to recurring revenue. Specific quantitative splits by stream, named partnerships, or exact pricing/contract structures are null.

Quick Heal Technologies Ltd. Financial Statement Overview

Summary

Balance sheet strength is a major positive (minimal leverage, sizable equity), but this is outweighed by weak recent operations: FY2025 revenue declined (~5.1% YoY), operating profitability turned negative (EBIT/EBITDA margins negative), net margin fell to ~1.8%, and operating/free cash flow were negative.

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	2.77B	2.80B	2.92B	2.78B	3.42B	3.33B
Gross Profit	2.72B	2.72B	1.17B	1.14B	1.92B	2.04B
EBITDA	78.90M	-65.90M	373.00M	227.70M	1.07B	1.45B
Net Income	-7.40M	50.40M	242.40M	64.00M	831.90M	1.07B
Balance Sheet
Total Assets	5.45B	5.25B	5.13B	4.93B	7.16B	8.27B
Cash, Cash Equivalents and Short-Term Investments	1.85B	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	988.80M	835.60M	756.30M	735.90M	882.50M	752.10M
Stockholders Equity	4.46B	4.41B	4.37B	4.20B	6.28B	7.51B
Cash Flow
Free Cash Flow	-189.90M	-367.20M	106.30M	267.30M	741.30M	897.60M
Operating Cash Flow	-54.30M	-223.00M	181.90M	308.10M	799.80M	986.20M
Investing Cash Flow	-102.90M	159.70M	61.50M	1.85B	1.26B	-922.90M
Financing Cash Flow	16.20M	-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	68 Neutral	₹15.85B	21.87	―	0.42%	21.17%	27.66%
BCG	64 Neutral	₹17.72B	1.71	―	―	―	―
IKIO	62 Neutral	₹9.02B	38.21	―	0.55%	11.73%	-64.05%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KERNEX	54 Neutral	₹16.21B	84.78	―	―	155.87%	―
SUBEXLTD	46 Neutral	₹4.58B	56.55	―	―	-9.53%	96.99%
QUICKHEAL	45 Neutral	₹7.84B	54.49	―	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.