Ladies and gentlemen, good day and welcome to the eMudhra Limited Q2 FY 2027 earnings conference call. We have with us today from the management of eMudhra Limited, Mr. Venkatraman Srinivasan, Executive Chairman, Mr. Kaushik Srinivasan, Full-Time Director, Mr. Arvind Srinivasan, Director, Mr. Ritesh Raj Pariyani, Chief Financial Officer. As a reminder, all participants will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone telephone. Please note, this conference is recorded. I now hand over the conference over to Mr. Venkatraman Srinivasan, Executive Chairman. Thank you, and over to you, sir.
Thank you. Good afternoon, everyone, and thank you for joining us for eMudhra's Q2 and first half FY 2027 earnings call. Today, I want to speak about two things. The first is a strong quarter for our core business. The second is a certificate security incident in our TLS business, which took place in October, after the quarter closed.
I will walk you through our results, what happened, what it means for the rest of this year, and why our long-term direction is unchanged. Let me start with the numbers. In the second quarter, total income was INR 209 crore, up nearly 20% over last year. The EBITDA was INR 51.3 crore at a margin of 24.5%, and profit after tax was INR 33.4 crore, up 26% on year-on-year basis. For the first half, the total income was INR 402 crore, up 23%, and PAT was INR 65.4 crore, up 27%.
The margins year-on-year expanded on both lines, which tell us we are growing with discipline. It is important to note that the growth is coming from enterprise solutions built on our own five-product platform that grew 36% and now makes up two-thirds of our revenue. International markets also contribute two-thirds of our revenue. This is a more product-led and more global eMudhra, less dependent on any single market or single line of business. As our scale has increased, so have our working capital needs. Receivables have grown in line with the business. However, in terms of the number of days, it remains around the same level. Though the revenue has increased, we have paid the creditors without delay, resulting in decline in creditors in spite of the increase in revenue, and this has weighed on the operating cash flow in the first half.
Our incremental planned CapEx for the year is around INR 23 crore. We continue to open new doors this quarter. In Africa, we won the national PKI for Nigeria's certifying authority regulator, our entry into that market. In CIS, we secured our first win in Kazakhstan with a defense entity, and our pipeline in Kazakhstan and Uzbekistan is growing. We added significant clients in Indonesia, the Philippines, Germany, Qatar, and Abu Dhabi. Cross-selling with Cryptas brought in three more large enterprise clients in Europe. And in the UAE, our trust services pipeline keeps building as we await our license. The market is moving in our direction. Customers now face fixed deadlines on post-quantum migration, on identity for machines and AI agents, and on data privacy. These are now board-level topics, especially in banking and regulated industries. We have moved early.
Our platforms already support hybrid post-quantum certificate authorities and dozens of hybrid post-quantum certificate types. Because we own all our IP, we move at our own pace without depending on anyone else's roadmap. Now let me turn to the incident. On October 17th, an independent researcher reported weak keys in eight intermediate certificates within one of our public TLS hierarchies created during a key generation ceremony in April 2025. We revoked all 8 the very next day. None of them had been used to issue any certificate to end customers, and our root keys were not affected. Our infrastructure was not compromised, no data was breached, and security controls remained intact. As a precaution, the browser programs have distrusted the related root. We moved potentially affected customers to replacement certificates from other trusted providers at no cost to them.
We have appointed KPMG as an independent external reviewer, and a full review of our ceremony procedures underway. We take this seriously, and we will share what we learn. In the last two weeks, we did see some impact on our reputation as customers sought to understand what the incident meant for them. The impact has not been as pronounced as it might have been, thanks to our diversification across geographies, across product, across service lines and brands, and it is slowly settling down. We continue to be transparent about what happened, what we have learned, and how we are committed to improving ourselves. I also want to be clear about the scope. This affected only our publicly trusted TLS business, which was about 1% of our revenue. Our digital signatures, eSign, and all 5 enterprise platforms are not affected.
Given the limited returns from TLS relative to our overall business, we have decided to exit the sale of publicly trusted TLS certificates and focus fully on our core platform. In the U.S., the only customer is University Federation, who will be directly affected. University Federation was using our CertiNext product and TLS certificate. They have decided to continue to work with us and asked us to provide the TLS certificate through any other TLS vendor on a subcontract model. This is a big morale boost for us, and this is likely to considerably reduce our reputation risk in the U.S. market. We are actively working with the University Federation to transition its members smoothly. We had to walk away from a couple of deals that were directly tied to TLS, but we continue to pursue private PKI opportunities there, where we are seeing a healthy pipeline.
More broadly, there is enough global opportunity for our platforms, and we will course correct to focus where we see maximum traction. We expect the incident to reduce our FY 2027 total income by about INR 20 crore to INR 25 crore and our PAT by about INR 10 crore-INR 12 crore, largely in the second half. At the start of the year, we guided a revenue of about INR 825 crore and PAT of about INR 137 crore, about 25% PAT growth. We now expect our revenue to be about INR 800 crore and PAT of around INR 125 crore.
In our opinion, the impact of the incident may only last for next two quarters, after which it will be business as usual. Our priorities for the second half are simple: complete the external review and strengthen our processes, keep growing our enterprise platforms in our focus markets, and turn our new market entries into lasting business.
To sum it up, while we went through the incident, the core grew 23% in the first half, and the demand for trust identity and post-quantum readiness keep rising. I am confident about the road ahead. We propose to hold one investor meet in Trident Hotel, Mumbai, on December 2nd, and we welcome all of you to attend that meeting. Thank you for your continued trust in eMudhra. I will now hand it over to Ritesh to walk you through the financials.
Thank you, Chairman. Good afternoon, everyone. I am pleased to share the highlights of our Q2 and H1 FY 2027 financial performance. Starting with Q2 performance, our total income for Q2 FY 2027 was INR 2,090 million, marking a 19.6% year-over-year growth. Gross profit for the quarter grew 19.6% year-over-year to INR 1,167 million, with a margin of 55.8%. EBITDA for the quarter was INR 513 million, registering a 21.6% year-over-year growth with a margin of 24.5%. Profit after tax for the quarter was INR 334 million, reflecting a 26.3% year-over-year growth with a margin of 16%. Now coming to H1 FY 2027 performance, our total income for H1 FY 2027 was INR 4,018 million, marking a 23.4% year-over-year growth. Gross profit for the H1 grew 27.2% year-over-year to INR 2,219 million, with a margin of 56.5%.
EBITDA for the H1 was INR 1,017 million, registering a 30.2% year-over-year growth with a margin of 25.3%. Profit after tax for the H1 was INR 654 million, reflecting a 27% year-over-year growth with a margin of 16.3%. That concludes my remarks. Thank you, and we may now open the floor for the question-and-answer session.
Thank you very much, sir. Ladies and gentlemen, we will now begin with the question-and-answer session. If you have a question, please press star and one on your telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and one again. Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. The first question comes from Surbhi Soni from Bellwether Capital. Please go ahead.
Hey. Hi. Thank you for the update. Just wanted to get some sense on how large is the U.S. private PKI business as a percentage of the total enterprise business that we have in India. Like you mentioned, sir, that you believe that private PKI business would continue to grow and the outlook is healthy. Would it be possible for you to share any outlook on that side, proper on a three to five year perspective?
See, the U.S. business, we have two services business which was acquired through Ikon and TWO95 International Inc. Last year around $6 million is the solution business. Out of that solution business also
INR 9 million
INR 9 million. INR 9 million is solution business. Out of that solution also, we have the emSigner and the other product as well as this CertiNext product. So in the CertiNext product, it is not affected. Only the TLS business we are withdrawing. So in the U.S. TLS business was, our total TLS business was around INR 8 crore. On that, the U.S. TLS business alone was only INR 4 crore. Even CertiNext, even this InCommon, which is the university consortium. They now have decided to continue with us and use our CertiNext product. They are saying, "Through your product only, you source the TLS certificate in the backend instead of our emSign TLS, source it from some other provider, and you only continue to front-end everything and handle us." So, what may be affected is only the TLS, and TLS was only INR 4 crore up to now.
But two, three other deals we were discussing on the TLS, which may be around less than INR 1 million, maybe INR 600,000-INR 700,000. Those things we will withdraw because we have decided to withdraw from the business. That is why the reputation effect, it may not be contained only to the TLS business. It could be on other things also. That is why overall, considering the diversified geographies, considering the brand name used in each geography, brand name which different part of the business is sold, all these things we estimated almost in the next two quarter, INR 25 crore of top line may be affected. Instead of INR 825, it could become INR 800, but that effect will gradually wane down. On that very important point is since the affected customer itself and this entire incident just affected only one customer.
All other people thinking that they could be potentially affected because if our other routes are also distrusted, that is why we have changed all of them to Sectigo or some other providers SSL certificate. But actually, in reality, they are not affected. The affected is only one customer, which is this University Federation in the U.S. The good thing is they have decided to continue with us. So, that thing itself will contain the reputation risk in a big way. So, that is where we estimate INR 25 crore revenue reduction and maybe INR 10, INR 11 crore profit reduction. Maybe after two quarter, the effect will wane away.
Yeah, but to also address your point on the opportunity for private PKI, it is pretty large because anything outside of website certificates, if you are doing devices, IoT devices, wearables, and so many other things, those require private PKI, and those are also the opportunities that we will now go after, along with-
Got it. That is very helpful. Second question is on the India side, there are opportunities on the DPDP side and LEI. Especially on the DPDP side, have you started doing any POCs with the customers, and what kind of timeline should we look at in terms of revenue recognition on DPDP side and contracts being materialized?
We already won a deal in the last quarter itself for DPDP. This is for an NBFC. There is quite a bit of momentum in the current quarter. We should be winning many more deals for the data privacy. I think next year should be where, because the DPDP is getting enforced by a certain timeline, we should see a lot more traction in the next year. Number of conversations are going on with B2C, banks, NBFCs, private sector. Across the board, because DPDP legislation applies to everybody. LEI we launched, but we did not seriously start marketing. Obviously, attention was focused on this, but now we will again refocus on the LEI business as well.
Kaushik, on the DPDP side, typically what are the deal sizes here? Say, if you were to implement this for, say, a large NBFC or say, a top three banks in India, then typically how would a deal size look like here?
These are typically in the range of INR 40 lakh-INR 50 lakh to INR 1 crore-INR 2 crore for larger entities, but mid-size entities is about INR 40 odd lakhs range.
Understood. Except for this year, say from FY 2028, 2029, and 2030 onwards, how should one think about margins going ahead at a consolidated level?
EBITDA margins are around 25%. That we will try and maintain because obviously our focus is more on the solutions business, which is anyway slightly high gross margin. As we continue to focus on that, EBITDA margin should kind of be at that same 25% level.
Got it. Thank you. I will fall back in the queue. Thank you.
Thank you, ma'am. The next question comes from Sagarika Chetty from Antique Stock Broking. Please go ahead.
Hi, am I audible?
Yeah, you are audible.
I just wanted to understand the service performance in the trust service. Is that pain point behind it, or can we expect this profit to be comfortable for the rest of the financial year? Can you give more clarity on that? The second question is, how has Cryptas performed this quarter? Is there any broad change in line with what it has been in the last two or three quarters, if you can also quantify the contribution from Cryptas?
Could you repeat your first question? I understood the second question was on Cryptas because your voice became a little feeble.
The first question was on just the clarity on the sluggishness around the digital trust services business, right? I understand you had sort of explained the issue, but going forward, at least from the rest of FY 2027, what kind of trajectory are you expecting in this segment? If you can give me clarity on that.
On the first question was on the trust services, is it?
Yes.
Trust service has already indicated because no new use case is given by the government and all that. So that way, even we had not projected much growth for the trust services. It was projected to be around 10%-12% growth only. So that kind of growth may be there, but even if it is slightly lesser, it will be more than compensated by the solution business and all that.
Yeah, and on Cryptas, the revenue run rate for the quarter was around-
This quarter it was around INR 30 crore.
INR 30 crore. They are selling more and more deals with eMudhra products. Obviously, to that extent, the margin profile for Cryptas is improving. This year, I think they should
make almost a million dollar or little over million dollar EBITDA.
EBITDA.
Up to December.
Okay. Thank you so much. I will join back with you.
Thank you, ma'am. The next question comes from Pankaj Sachdeva from Avis Capital. Please go ahead.
Yeah, good afternoon and thanks for the opportunity. My quick question is on the trust services again. Last time you were going to understand that Q2, the disruption may continue and it will get normalized starting Q3. Just wanted to understand what is the status from a numbers perspective on that. That's one. Second, the related question is that last quarter we saw disruption in trust services and this time we had the TLS issue. Is this something which we should be kind of assuming that is a normal part of the business?
Yeah, disruption in trust service was majorly in token, because in the token they said instead of, it has to be a FIPS 140 Level 3 compliant token, and it was only released in September middle or something like that. So that's where the token revenue got affected. The third, fourth quarter it will improve. From a pure DSC side, because in the token, if you see, the margins are less. Whereas if you see the DSC itself, the second quarter had a little better volume. Third and fourth quarter, because second quarter is the main season, the third quarter, October is the season, but November, December may not be the season. So maybe it will be around the similar levels only. It may not be a bigger growth. Even we had projected only a 10% growth in the entire.
But on the other side, eSign is growing very much. eSign is also in the trust services.
eSign is enterprise.
eSign is growing. More and more eSign, remote sign, those kind of enterprise-related product will grow in a bigger way. Almost one year back, we were doing one lakh, 2 lakh eSign. Now we are doing almost 7, 8 lakh eSign per day. Those things will grow, but pure trust services, which is the conventional digital signature, may be flat to 8%-10% only.
The other question that you had was more related to the incident. It is not really, I mean, it was basically a problem and widely covered in the sense that our TLS line of business kind of had an incident. We have spoken about extensively through stock exchange filing. The first one was more industry-led, second one was more eMudhra, but it is not normal in the sense that disruptions are, I mean, these things happen, but it is not expected to continue as such.
Got it. Thank you.
Thank you, sir. Ladies and gentlemen, if you have any question, please press star and one on your telephone keypad. Ladies and gentlemen, if you have any question, please press star and one on your telephone keypad. The next question comes from Deepak Kumar from IGP India Family Office. Please go ahead.
Yeah, thanks for the opportunity. My question is on this incident. Because of this incident, are we like reviewing the other segment also? Though there is no direct impact, but in AI world, what we have learned from this incident for specifically to other segment?
No, other segment business-wise will not be affected. But from a technology perspective, whatever possible, we have to again analyze with the help of the AI and see what are the further securities to be put in place. That work is parallely going on. It will be done. But business-wise, those things, other business are not affected. This business is a very small 1% business. That's where instead of 1% business also, there are other four, five reason why we discontinued the business. Because if you see earlier, globally it was allowed to issue a 820 or 840-day certificate. Later on, gradually it is coming down to one year. Then one year it has come down to 90 days. 90 days is coming to 40-50 days and all that. This is one side. The other side, earlier there were DV, OV, EV.
EV was a very high price item. Gradually the browsers started not giving any importance to EV, so people are not buying the EV. That is another side. The third most important side is Google itself started issuing all the DV certificate free of cost, 90 day. So Google also issues 90 day free. We also issue 90 day at a cost. So nobody will buy from us. That is why in spite of doing this business for six, seven years, even after we went live in 2021, it is almost five year, we could not improve it to more than 1%. Considering all this, but the compliance requirement is very high. Nowadays what is happening because every geography want their data center to be in their respective location. So that also adds to the cost.
Considering all this only, we came out of that. The other business are not like that. I don't think any effect will be there and the other business will continue. AI-based, how to improve security by using AI, that we are continuously, our technology teams are working that.
Yeah. Some sort of analysis and external agency analysis on the other segment of the business will help if we can do that on the other segment. We understand that it was only 1% of the revenue, but the concern on the other segment arises because of such incidents. That will be helpful. Thank you.
If you see the other segment, except trust service segment, all the other product segment, we are not storing any data or we are not doing anything. These are all going to government, BFSI and all that. On a license basis where the data is stored at their risk and they are storing wherever they want to store. This kind of risk cannot come in that business. Only in India trust services it can come that we are more stringently securing it. That way, I don't think any big risk is there in the other segment.
Got it. Thank you.
Thank you, sir. The next question comes from Pranaya Jain from Banyan Tree Advisors. Please go ahead.
Hello, sir. Can you hear me? Am I audible?
Yes, sir. You are audible, sir.
Thank you. Thank you for the opportunity. I had three questions. Number one was, can you let me know what was the constant currency growth for the enterprise business, both like services as well as the enterprise solutions business on the international side? That will be question one. Should I ask the other two questions together or?
No, we will go one by one.
Okay.
If you see our total business, roughly around INR 800 crore, almost INR 275 crore is the India business.
Yeah.
Balance almost INR 525 crore and INR 25 crore is the international business.
Yeah.
The international business, again, if you see currency-wise, it may be INR 5 or something like that. So, constant currency also, it is a big growth. Maybe 1% or 2% on the overall, maybe only due to currency. Other thing will be on a dollar-to-dollar basis itself.
Understood.
For INR 525 crore, you can work out what was the dollar price at that time. That will be the only difference.
Okay, got it. Got it. Secondly, my question was whether when we sell our CertiNext product, was the bundling of TLS an important element when CertiNext was getting sold earlier, and will it have an impact going forward?
No, not required at all. CertiNext is a neutral product. With CertiNext, we can connect any SSL given by any vendor. So in lot of cases, it is sold standalone. It is not sold along with the TLS. So in this case, in InCommon, it was sold together. In some cases, only SSL is sold and not CertiNext also. It is not affecting the TLS itself, will not affect. Now when we sell CertiNext, we will either we may bundle or depart itself directly by the SSL from Sectigo, SSL from SSL.com or GoDaddy or from DigiCert, and then they use it through the CertiNext.
Understood.
Yeah.
Got it. My last question is on, will you be facing issues in terms of retaining customers as well, or the cut in your revenue estimates is more to do with the new deals that you were expecting to win?
I will explain to you geography by geography, then you will get a better sense. For example, if you see India, in India, our revenue is not likely to be affected at all. Because now everybody knows the America versus India sentiment, why Google distrust something, and various things. Though these browsers distrusted us, it is not unique. So many other people know Sectigo has done some 108 million certificate wrong. Then some other GoDaddy has done some 5 lakh certificate wrong. Then Erica has done something wrong. But that's why people know that's why somebody distrusted or not. So from this geography, that reputation risk is not at all there. The segment in which our products are there, we are unique and mostly, if let us say government bank do not choose our product, they may have to choose the American product
I don't think we are facing any reputation risk. Even we saw immediately, even on that date, next date, next date also, whatever digital signature sale, eSign sale, everything was increasing or around the same line, nothing got affected. If you take Europe, Cryptas, again, what is happening? Because everything is sold in the brand name of Cryptas and PrimeSign, not on the eMudhra brand side. Our product is also sold in their brand name because it's an acquired company. Another thing is they are all in European language, so they do not read this English language, Twitter and LinkedIn, by which lot of unwanted messages are all passed that they are isolated from that. So it is not affecting them. Then you go to U.S. In U.S., what are we doing? Two service business acquired by Ikon and TWO95 International.
They are all sold in that respective brand name. So they are not affected. Even what product we are selling, we were earlier selling, we had a subsidiary company called CertiNext, and under CertiNext powered by eMudhra and all this. But immediately, we removed the, because of all this message thing, we removed the eMudhra link to CertiNext and trying to brand CertiNext into an individual positioning. Still some business may be lost, but predominantly still all the customers, all the conversations are continuing. Africa almost isolated. Middle East little bit effect is there. Far East, if you see Philippines and Indonesia, almost no effect. So that's where the reputation risk is contained to U.S. and little bit of Middle East. So that's where we estimate only intra INR 825 crore, INR 800 crore could be there for the year as a whole.
That also within two quarter we will overcome. On that, the major booster is the client who is directly affected himself is continuing with our CertiNext product, and also through a subcontracting for the SSL. So that itself is a big positive sign.
Right, right. Understood. If I can just ask one more question.
Yes.
I wanted to understand, while you have spoken earlier about AI being a tailwind for the industry, we see a lot of vulnerabilities that AI is being able to catch. So do you see that as a threat for the incumbents?
AI is a threat for the general bank, any financial service, NBFC, all those industry, AI could be a threat, but they have to strengthen their security architecture and all that. For us, AI could become a positive also because before them, we also strengthen everything, then we can also sell it as a proposition to them. Maybe I will ask Kaushik to explain better about the AI, what are all positive for us.
Yeah, so AI in many ways has significantly accelerated our ability to deliver products at a faster pace. Because AI has now significantly increased the attack surface for many organizations, and our products mainly focus on user identity and device identity and data security, it is probably a big plus as enterprise trying to bring this zero trust posture, right, where everything has to be verified. So identity management, authentication, strong authentication, strong encryption of data, all of these are becoming big needs of the hour. More with this transition to quantum computing, everybody is now mandated to adopt post-quantum cryptography. That is also an active area where people are looking to invest.
The areas of cybersecurity investments broadly fall in the line of the products that we have already developed and put in place, which is why we see hopefully continued opportunity for our products in the market.
Understood. This was very helpful. Thank you and all the best.
Thank you.
Thank you.
Thank you, sir. Ladies and gentlemen, if you have any question, please press star and one on your telephone keypad. Ladies and gentlemen, if you have any question, please press star and one on your telephone keypad. The next question comes from Shubham Sahani from RSPN Ventures. Please go ahead.
Yeah, hi. Thank you for the opportunity. I wanted to understand your view on the DPDP side of the business you are trying to do with PrivaTrust, right?
Yeah.
What all things are you planning to do in the whole life cycle of the DPDP? Actually, there is consent management, and there is also the whole life cycle of the data that stays with the company, right? And t hen you have to delete it after the data usage is complete, as per the DPDP law. So what all products are you planning to build on it, and if you could provide any guidance on how big this opportunity could be in terms of number, top line, or bottom line, whatever you have in mind?
Yeah, from a product perspective, our product is fairly comprehensive. It deals with consent management, it deals with data discovery, data classification, data protection, basically data retention governance. It deals with third-party vendor data management, their life cycle, their workflows, data subject access requests. Pretty much the entire stack that som ebody ne eds to put in place for DPDP compliance as a whole, and not just limited to consent. And also the whole audit trail, access records, historical use of data. The whole life cycle of as soon as you collect data to what you do with it, to where you send it, and how it is protected, et cetera, is kind of fully captured in the product. The idea is next year, how do we capture, let us say, 40, 50 clients with the kind of value that we had ascribed earlier.
That is the immediate scope, because typically the first p hase will largely look at entities that are somewhat focused on customer data and meaningful scale, and give some kind of a v alue of, let us say, INR 40, INR 50 lakh, INR 1 crore. That is probably the opportunity size that we are kind of looking at. Although there may be a much larger universe, there will obviously be a phased implementation of many capabilities over the next two, three years. This is our target market in the first year.
Also, do you see any other companies who are building in the same space? Because DPDP had compulsions like all the major companies in India, and this could be a major opportunity going forward.
There are quite a few companies that are building various capabilities, but many of them are focused on only one or two layers. There are a very few select names that are focused on the entire DPDP stack, and our whole expertise has been on data protection, which is where we score very strong. While some of the layers of DPDP could get commoditized with many players, the consent management is not, it is pretty commoditized. But as you go more deeper into data protection and data retention governance and data loss prevention, then the number of players that do the kind of capabilities then start becoming very limited.
Okay, great. Thank you.
Thank you.
Thank you, sir. Ladies and gentlemen, if you have any qu estion, please press star and one on your telephone keypad. I repeat, ladies and gentlemen, if you have any question, please press star and one on your telephone keypad. We have a follow-up question from Surbhi Soni from Bellwether Capital. Please go ahead, sir.
Yeah, hi. On the 23 crore investment that you mentio ned, can you spend some time on where and which product suites would this be directed towards?
The 23 crore incre mental CapEx is mainly on completing the data privacy stack. Obviously, we have developed most of the modules, but incrementally, there are few modules that need to get developed. A nd also some improvement in emSigner, mainly for adding certain AI capabilities, and also for certain ID verification that we have to build as part of our global TLS operations.
Oh, okay.
Sorry, global digital signature operations, not TLS.
Got it. On the post-quantum side, have you started receiving any inbound inquiries or any POCs that you have started on the PQC side itself?
Yeah, yeah. Quite a few POCs are ongoing. Some of those will materialize. I think one has materialized into an order. Many more will happen in the next quarter, next year onwards, actually. Because deadlines then start coming.
Deadlines are related to PQC?
PQC adoption and migration. Basically 2029, so many companies are kind of planning, they will start planning from next year onwards.
Understood. Cool. Thank you so much.
Thank you, ma'am. Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad.
Moderator, I think we have a question. Maybe you can request.
Okay, sir. The next question comes from Amit Chandra from HDFC Securities. Please go ahead.
Yeah. Bharat, thanks for the opportunity. My question is that, with these events which has happened, obviously you explained about what the implications are. Are we seeing any kind of pullback from our existing clients in terms of the issues which are being there in terms of the certification issues or overall issues related to cybersecurity and all? In terms of the e xis ting contracts or the contracts which you have won, is there any kind of delays that you're seeing in terms of ramp-up, especially in the RBI contract that you announced sometime earlier? If you can give some clarity, it will be helpful, sir. Thank you.
No, from my existing business or existing contract, no effect at all. As I said, the only affected party was the U.S. university. Nobody else is affected at all because we had not issued any certificate out of these things and all this. So that way, there is no effect at all. Even that U.S. University Federation, they continue to work with us. So from existing contra ct, absol utely zero termination, zero anything. Nothing at all. Out of the new customer also, only the potential TLS customer, because we are withdrawing from the business, they are not acting, and other people little bit getting delayed. Otherwise, nobody. Because this distrusting or canceling the certificate and all this in this industry is very common, and the customers are aware of this.
Because several times, even Entrust has canceled a lot of certificates, Sectigo has canceled a lot of certificates, then GoDaddy has canceled, all the SSL.com has canceled. That way, it is not new to the cyb ers ecurity and industry people, though the media blew it up in a very big way. That way, the impact is very minimal. As I said, the impact may be only confined a little bit to the U.S. market and Middle East market. That is where we estimated around, instead of INR 825, it could be INR 800 and maybe INR 10 crore less kind of thing. Next year, it will become normal. Almost it is getting normal even today.
Okay. Bharat, just a clarif ication that the enterprise obviously is these 60% of our revenue. Within that, we have the cybersecurity. Within that, the overall cybersecurity business, we have SecurePass and CertiNext. This TLS was a part of your CertiNext, which is these device identity and authentication service. In the press release, you said 1% revenue from TLS.
TLS is not a device identity and auth. TLS is only a website identity and authentication. Trusted, that is the only thing. That was only 1%. As I explained earlier, gradually this business is become. Google is issuing 90-day free certificates, and a lot of large customers are all renewing the certificate through ACME protocol with automatic renewals. Nobody is willing to pay mon ey to get the cer tificate. That is where this business is not a growing business, it is a declining business, and that is the reason. Further, the compliance and other things are very. That is the reason our board also decided to come out of this business. It is not a big business at all, and it is not always bundled with our CLM CertiNext product also. CertiNext is independently sold, this is independently sold.
The offering that is the TLS certificate validity management, that is a separate offering, or is it because most of the enterprises to manage their certificates also is a big challenge for them? That certificate management business is a part of the CertiNext offering, or is it separate from the existing 1% like?
It is different from the existing 1%, Amit, because the CertiNext as a platform is independent of the TLS certificates that were sold. Most of the places where we sold the CertiNext platform, the certifying, basically the TLS provider was a third party. It did not involve eSign per se, our own TLS. It is completely independent.
Okay. That business is not impacted, right?
That business is not impacted.
Okay. Understood. Obviously, it is very encouraging to hear that it is not going to have any kind of an impact. But the point is, the only concern that we had is, in the short- term, obviously, we are not seeing any impact. But over the longer- term, maybe some of the newer initiatives that we are planning or some of the newer contracts which are there in the pipeline, do you see any kind of risk in terms of conversion of these contracts?
No, we have spoken to most of our prospective customers. As Chairman had indicated, the only contracts were couple of them in the U.S. where the service itself was to directly provide the TLS cer tificates. That is obviously the one that is getting impacted, which is what we have revised our kind of top line and bottom line guidance. Beyond that, there is no other impact.
Okay. Okay, thank you, Bharat, and all the best. Thanks.
Thank you, sir. There are no further questions. Now I will hand over the floor to the management for closing comments.
Thank you. I would like to thank everyone for joining the call today. We remain focused on delivering consistent performance and innovative solutions that enable secure digital transformation for our clie nts across the globe. For any additional information or queries, kindly get in touch with us. Thank you once again. Thank you.
Ladies and gentlemen, this concl udes your conference for today. Thank you for your participation and for using Doosra Abbas Conference Call Service . You may disconnect your lines now. Thank you, and have a pleasant evening.