Ladies and gentlemen, good day and welcome to the Q2 and H1 FY 2026 conference call of Quick Heal Technologies Limited, hosted by Valorem Advisors. As a reminder, all participant lines will be in the 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 and then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Hena Khatri from Valorem Advisors. Thank you, and over to you, ma'am.
Thank you, Sagar. Good afternoon, everyone, and a very warm welcome to you all. My name is Hena Khatri from Valorem Advisors. We represent the investor relations of Quick Heal Technologies Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings call for the second quarter and the first half of financial year 2026. Before we begin, a quick cautionary statement. Some of the statements made in today's earnings conference call may be forward-looking in nature. Such forward-looking statements are subject to risk and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's belief as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions.
The purpose of today's conference call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. Now, let me introduce you to the management participating with us in today's earnings call. We have with us Dr. Kailash Katkar, Managing Director, Dr. Sanjay Katkar, Joint Managing Director, and Mr. Ankit Maheshwari, Chief Financial Officer. Without any further delay, I request Dr. Kailash Katkar to start with his opening remarks. Thank you, and over to you, sir.
Thank you. Good evening, everyone. It's a pleasure to be here with all of you today and share our performance for the second quarter of financial year 2026. I am happy to say that Q2 has been a positive quarter for us. Both our businesses, consumer and enterprise segments, have performed well, showing the strength and balance of our overall portfolio. It was a good quarter for our consumer business, as Q2 traditionally has been such due to seasonality, supported by our resilience effort and continuous trust that customers and partners have in the Quick Heal brand. The enterprise business continues to grow steadily, driven by strong partners, innovative product launches, and strong traction across key customer segments. This balanced performance reflects the steady progress we have made towards building a strong, future-ready cybersecurity company that serves both individual and business with equal focus.
We also continue to invest in innovation this quarter. Our partnership with BHASHINI, where we are bringing data privacy solutions in 22 Indian languages, is a proud step forward. We also onboarded our first customer for our data privacy solutions, which helps enterprises meet Indian new data protection requirements. I am also proud to share that our efforts have been widely recognized. Seqrite was named Cybersecurity Service Provider of the Year and Quick Heal owned The Leading Cybersecurity Solutions Brand of the year 2025. This recognition reflects our team's hard work and shared vision. Beyond business, as a responsible organization, we continue to drive social impact and have touched more than 6.8 million lives throughout the year. It's a small but meaningful way of helping citizens stay safe in the digital world. As we move into the second half of the year, we do so with confidence and clarity.
We have a heavy business pipeline, a growing international presence, and a strong team that continues to drive our vision forward. Before I close, I want to thank all our shareholders, customers, partners, and employees for their continuous trust and support. It's your confidence that motivates us to keep growing, innovating, and delivering long-term value. I will now request Sanjay to take you through the strategic and operational updates. Over to you, Sanjay.
Thank you, Kailash. Good evening, ladies and gentlemen. Let me take you through a quick summary of our progress during Q2. The global cybersecurity world is changing fast, and more companies are adopting AI, cloud-based security, and data privacy solutions. Against this backdrop, Quick Heal and Seqrite are well-placed with a complete range of security products and services. We are growing across three focus areas, maturing our product range, reaching bigger customers, and entering newer markets. On the product side, we are investing into solutions that bring together different security tools under one platform. For large enterprises, we see a good initial interest in products like our data privacy solution and threat intelligence platform.
Seqrite Labs unmasked a grassroots campaign of hackers behind job recruitment cyber scams and presented its paper on silent links, uncovering a cyber espionage campaign in Central Asia at an international virus bulletin conference in Berlin. On the consumer front, we continue to build awareness and trust. Regional campaigns in Tamil Nadu, Maharashtra, and festive activities across the country helped us connect more deeply with our users and partners. Our goal remains simple: to make cybersecurity easy, effective, and accessible for everyone. We have a strong roadmap ahead, and we are confident of continuing this positive momentum through the rest of the year. I'll now hand it over to Ankit to share the financial highlights.
Thank you, Sanjay. Good evening, everyone. Let me now take you through the financial highlights for quarter two, FY 2026. This has been a good quarter for us, with growth coming from both our consumer and enterprise businesses. Revenue for the quarter stood at INR 83.5 crores compared to INR 57 crores in the last quarter and INR 73 crores in the corresponding quarter of the last financial year, showing healthy growth helped by seasonal strength in consumer business and steady demand in enterprise business. International revenue continues with the growth momentum, supported by good traction in Southeast Asia and the Middle East. Government business has also shown robust growth in the quarter gone by, reiterating the trust and belief our customers have in us. Deferred revenue stands at INR 17 crores at the end of the quarter.
Our EBITDA margin improved to 11%, helped by revenue enhancement and better operational efficiency. EBITDA for the quarter stood at INR 9.2 crores compared to -INR 9.7 crores in the last quarter and INR 3 crores positive in the corresponding quarter of the last financial year. R&D investments are optimized this quarter as we restarted to leverage automation and AI. We continue to invest in sales and marketing, strengthening our sales team to propel our growth trajectory. Also, please note that business bases prudent accounting policies at the expense of all our R&D investments. PEG for the quarter stood at INR 8 crores. Our balance sheet remains strong and debt-free, giving us the flexibility to invest in R&D and market expansion. Our investments and cash balance stand at INR 191 crores as of 30th September 2025.
With a solid foundation and clear direction, we are focused on maintaining this momentum in the second half of the year, with our focus on driving predictable and sustainable growth across both businesses. Thank you, everyone, for your time and continued support. We will now open the floor for questions.
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touch-tone phone. If you wish to remove yourself from the question queue, you may press star and then two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Again, to register for a question, please press star and then one. Participants, you may press star and then one to ask a question. Our first question comes from the line of Ashish Soni from Family Office. Please go ahead.
In terms of tailwinds, our government is promoting Zoho and others. Are we seeing tailwinds because of that, at least for Indian enterprise customers willing to take our product compared to like maybe foreign products?
Yeah, Ashish, definitely there is a scope out there and we are also working in that direction. The only thing is, I mean, things are moving slow on the government front. We have been showcasing what we have and in fact, a lot of government departments are already using our solutions. The kind of promotion that you talked about, Zoho, it's something different that we need to work with them to make sure that they also talk about it publicly. That's where we are working as well. It's like, I'll say, work in progress here.
In terms of the R&D and marketing sales, when do you think it can, like, it's peaked out or do you think we'll, like, reach to, like, 20% sort of thing or just give us a direction because now I know last one or two years you have been spending a lot on that. Just give us a color and any growth aspirations also which you have, at least in terms of revenue.
Ashish, we don't give any guidance on the revenue, but in terms of R&D, in my speech also, I said that there is a decline in R&D expenses. For the last couple of quarters, we were having negative EBITDA. To address that, we have done some delayed hiring. In addition to that, more importantly, we are actually using AI and automation tools to optimize our cost. With both these actions put together, we were able to save some cost on R&D.
I think the geopolitical situation, like defense, there are different camps in the world. Are we seeing any foreign business coming our way because of all this geopolitics? Take an example, at least for Nayara, right? We have seen Microsoft stopping the services and then I saw SAP stopping the services. Are we seeing any such trends from your perspective?
We are, of course, threats. We are, in fact, quite actively, Seqrite Labs is monitoring the threats and also coming out with detailed reports and sharing it with the right authorities. At the same time, on the product front and on the market front, what we are seeing is there's quite a good interest has been generated because of the geopolitical situations, even in India as well as in regional areas like U.A.E. and all, wherein people are interested to at least have a look at our products, have a understand our offerings. That's where we are quite happy with that. At the same time, things are going in the right direction, I'll say. Nothing as such immediate, I can say on the front of revenue. Yeah.
Ashish, this is one of the reasons we are seeing an uptick in our government business. This quarter, we have seen an uptick in revenue in our government business, especially. This is one of the reasons government is actively using our product. Sorry.
Okay. I think as a public address, I can understand. In terms of aspiration, because I was reading a lot of reports in terms of China, right? Their homegrown applications or the softwares are routing the, I know India is a bit different. With all this situation, do you think our aspiration is to reach some target in like five years or three to five years, at least our aspiration by the ambition by?
Yeah, Ashish, of course, we always aspire that. In fact, the situations since at least a couple of years and now recently more prominently, the geopolitical situations are really helping us promote our views across different departments and verticals in government. We ourselves are quite sure and we are making sure that we will be the, I'll say, topmost alternative for any MNC product that's being used across India on the cybersecurity front and on the cybersecurity lab as well. That's where we are also seeing good traction. That's why we also launched these two products. Last year, it's the threat intel, which is a kind of feed that also can be incorporated into any existing MNC products that any of the government may be using but still wants to have an Indian or an indigenous threat intel feed. We are seeing good traction on that front.
I'm quite sure that we'll be at a much better position in at least a couple of years in that respect, actually.
In terms of this data protection policies, like whatever government is coming up, do you see a very big potential for us to scale that business in India specifically?
Yeah, so for that, I'll say that is something that will create a new market altogether for a product like complying for DPDP because people have been using things in bits and pieces like DLP solutions or something. This law is much more comprehensive and guidelines are coming with much more details wherein now there is a scope for a product like the data privacy product that we just launched. We are seeing good enough interest and a lot of POCs are happening. The law is still delayed. It's not yet completely implemented on the ground. People are waiting for that. At the same time, certain organizations have already gone ahead and done POCs, now planning a budgeting for that. One customer we onboarded, which we are happy. Now, I'll give you some idea with respect to how it will go ahead.
One, this product is a new product in the market and especially being targeted on mid and large organizations, not SMBs. There will be a period where the product will still need some maturity with respect to the expectations on the enterprise front and the offering that we already have. That's the period we are entering into. We are already getting traction and suggestions as people are doing POCs. As we cover the ground, we will be in a much better position to address this DPDP-related compliance market. I feel that's going to be a big enough market for us to add revenue. It's all about how things are moving and compliances are getting implemented. We are working on both sides, like working from the compliance side.
We are talking to the authorities at the same time, working with the consumers to make sure how they are looking at the offering. I do see there is a scope for even service on this front. We are shaping our product for the consumers at the beginning and then gradually see if there is a service need to be added to that product as well. We ourselves are into the learning cycle. Yeah, I'm very hopeful and positive about this product line.
Last question on this R&D.
Sorry to interrupt, Ashish. Sir, may we request you to return to the queue for follow-up questions? Thank you. Our next question comes from the line of Majid Ahamed from Pinpoint X Capital. Please go ahead.
I audible, sir?
Yeah.
Yes, sir. Thank you so much for the opportunity. My first question is, going forward, I'm just trying to understand the clear levers of growth, especially in the enterprise segment. Considering the fact there is also much more need for the government side of defense and other government enterprises require these types of high-end solutions as we go forward, I just want to understand the levers of growth that you're looking to execute in the next two to three years.
As we have been saying every time, for us, we do see enterprise as the vertical that will add more revenue to us in the next couple of years. In that enterprise front, we are already having a flagship product that is EDR/XDR, contributing more than 90% of that revenue. The newer products that we launched in the last two to three quarters have started bringing revenue as well. Along with that, with the latest products that we launched, the S TI P and S MA P, we are seeing good enough interest by the enterprises into these products as well. Along with that, we do see good growth should happen in government business because we are being invited and we are demonstrating a lot to the government departments. The only thing is, since these things are big ticket, they are taking some time.
They are taking time for decisions. We do hope for getting a good entry into that vertical as well. I do see a good enough potential for our enterprise products in the mid-market and government segment as well.
May I know the potential that you're looking at, like the time you're looking to hit in the government sector, how big it can be in terms of the opportunity size?
See, on government, there are multiple channels. One is, like say, state governments have a different traction with respect to that, and as well as central government has a different requirement altogether. We are present in both the fronts. In terms of volumes, government itself is not releasing the figures, but they are budgeting for cybersecurity. The budgets that they are currently, they are increasing them. I mean, we are not having the figures in mind. All put together, over the two to three years, it should be around INR 4,000 crores as a total market. We want to grab as much as possible. We are being in the right position, being Make in India, and the preference being shown to Make in India is what we want to grab as much as that pie from that market, actually.
Majid, we have always said that the focus area for the company is enterprise going forward. With so many new products, especially Make in India, etc., benefit, government is going to be a key lever along with international geographies.
Thank you. Sir, secondly, I just want to know, like currently, as I see in your balance sheet, investment there are INR 179 crore in mostly mutual funds. Any plan to redeploy it in any sort of M&A or any acquisition targets you have for growth?
Over a period of time, we continuously evaluate all the options which we get. At an appropriate time, we'll update, basis the guidance from the Board, and then update the investors as well.
Yes, we are actively looking. In fact, a lot of discussions do happen regularly. We like that these things are something that we may want to make sure align with our plan or vision and the roadmap that we are planning, the kind of customers we are already targeting, and the gaps that we are seeing in our products. That is where we are looking for the right fit. Of course, we will be using those funds as and when required, and we will be informing all the investors as well in advance.
Yes, sir.
Okay, sir. Finally, I just want to know, like about the appointment of the CEO, any plans on that?
CEO selection is in process. Once he is appointed, you people will automatically get to know because we need to immediately inform the stock exchange. A lot of interviews are happening and it will get closed soon.
Okay, sir. Thank you, sir, and all the very best.
Thank you.
Thank you. Our next question comes from the line of Deepak Ajmeera from IGE India. Please go ahead.
Hello. Am I audible?
Yes, Deepak.
Thank you for the opportunity. My question is regarding the repeat customer rate. What is our repeat customer rate?
We generally don't disclose it, but since you've asked it, it is in the range of 80% +. Our.
For our enterprise customers.
For our enterprise customers, it is close to ± 80%. For consumers, it is close to 30%-35%.
Got it. We have launched some new product for AI scan, scan-related fraud. What is that, AntiFraud.AI?
That's a B2C product. It's a consumer product which we are focusing on protecting consumers from the frauds that are happening on the phone mostly. That's the product. We are investing, or I'll say, inventing newer and newer features based on the kind of frauds that are happening into that product. We are using our channel partners for B2C to distribute that product. At the same time, App Store is the one area where we distribute that product to the customers out there.
Got it. That product needs to be installed into a mobile phone or what?
Yeah, yeah. It's a complete phone-based protection. We do have PC-based as well. We are bundling that with our Quick Heal Total Security for the frauds that happen on the PC. Mobile is the one that is more focused for fraud because mobile-based frauds are completely different. AntiFraud.AI is there for Android and Apple phones as well. AntiFraud.AI for PCs is bundled with our Quick Heal Total Security, which is for PCs.
Does it bring any kind of slowness to phone?
Can you repeat your question? I'm not able to hear you.
Slow.
It doesn't slow. No, no, no, not at all. We do benchmark ourselves while we release a newer version every time. It doesn't impact your battery performance or the phone performance at all.
Yeah. Okay. In the consumer segment, how much at how much premium or discount do we sell our product in comparison to the competitor?
Sorry, Deepak, we are a premium product. Even if you go on the e-comm website, you will always see that we have priced our product at a premium to McAfee and to other indigenous players. We are a premium product, and premium really depends upon the demand and supply, but we have classified ourselves as a premium service provider.
Yeah, currently, tentatively, something in the range of 15% - 20% is the premium that we command over the competition.
Got it. Lastly, our revenue seems to be stagnant since 2016. What is the outlook over that?
As we say, we don't give any guidance. The intent of making so many investments in the last couple of years is to take our journey in enterprise to the next level. We all know there are headwinds in the consumer business. We are trying to hold our foot in the consumer business at the current level. That's the overall thought.
Okay, thank you.
Thank you. Before we take the next question, a reminder to all the participants, you may press star and then one to ask a question. Our next question comes from the line of Karan Gupta from Asit C. Mehta. Please go ahead.
Hi. Good afternoon. Am I audible?
Yes.
Yeah. Hi. My question is regarding the B2B side. We know that the B2C segment is facing some headwinds, let alone the government side also. I just wanted to understand here for the B2B side, you guys are also working for the tier one, tier two IT companies, IT services companies, or what's the competition there? Is it that those companies are making or outsourcing their cybersecurity systems in-house, or they are outsourcing? What's the position in the B2B side you have as of now?
Karan, our enterprise solutions, we are more prominently focused on mid-market and SMBs. SMBs are strength right now, and our maturity has gone to the level where we are now entering the mid-market as well. Mid-market, when I say, it's like organizations who have more than 1,000 endpoints, less than 5,000 endpoints. IT services or these GSIs are not our target. We are not focused there. Our focus is more towards particularly these mid-market organizations who are not having cybersecurity, I'll say, maturity, and they are looking for XDR solutions and XDR/EDR or firewall kind of solutions. In that, we are focused on our XDR and ZTNA products and zero trust products to sell them.
Why in this segment are you focused on? Why not in tier one IT services companies? What I can imagine is that the market in the JNI segment where these kind of companies are heavily investing will be much larger than what you are seeing. I mean, just the rationale behind what you are focusing on, basically. What.
See, it's not like that we are completely defocused on that. The thing is, we have worked with them. We have tried out there. The thing is, the requirements and the expectations from that market are different, wherein there's a lot of further investment needed into the products. We are gradually matching our products to make sure that they also can be plugged into their backend system where they can provide our product as a system to their customers. In fact, you may be knowing a lot of people here that we have at the senior level have come from a services background, and they do have a lot of good connection into the IT services sector. We have been reaching, we have been talking to them. It takes time, these kind of things, because the large enterprise or IT services, large organizations are more focused.
Their customers are mostly Fortune 1000 companies, where the requirements are completely different. The product maturity and the investment to reach that level is quite high. What we are doing is we are on the ground. We are also strongly focused on things where we are having the strength, the kind of markets that the MNCs are ignoring, like lower mid-market and SMBs, where they are not at all focused, and the markets are quite open. Our products are much mature and easy to capture those customers. Yeah.
Okay. For MNCs, those markets are very small. That's why your focus is on that, and they are not catered to that. Just one clarification. I don't know, basically, in cybersecurity, these large enterprises are making in-house or they are outsourcing the cybersecurity platforms or maybe solutions?
Sir, we develop everything in-house. We have been doing business for three decades now.
Sir, the enterprises, I'm asking in the perspective of enterprises. Are they making in-house or are they outsourcing?
It depends. Like, as I said, mid-market, they go for products, and they depend on system integrators, actually. If you see large enterprises, they have a complete in-house team for managing the whole operations and SOC operations, all that. Then mid-market and similar operations mostly depend on system integrators or MSSPs to complete their cybersecurity readiness, actually.
Okay. Just last one, on the competition side. In India and globally, if you can just name some of the large peers in India and globally, McAfee, I think everybody knows.
McAfee maybe is a competition on the consumer side. When it comes to enterprise, it is SentinelOne, Sophos, Trend Micro, CrowdStrike. These are the competition. These are multinational competitions which we compete.
In India, we face pretty much the same competitors, actually.
Yeah, these are multinational companies.
Okay. You also said in the enterprise segment, Sophos.
Sophos.
S-O-P-H-O-S.
Okay. Okay. Okay.
Is there anything, I mean, what's the differentiation that we can create as a solution for cybersecurity? What kind of solutions can we provide them? Just the differentiation in the products. Just wanted to understand, just thinking how.
Yeah, it's so.
Basically, the products are different. That's what I'm understanding.
Yeah. Exactly.
Okay.
We do have a product management vertical which is more focused on how we can compete best in the market with respect to the product feature maturity. At the same time, bringing in the differentiators so that we can be standing out in the face of competition and leading the way in certain markets. We do have a team that is more focused towards creating differentiators in all our product lines, and we already have such differentiators in our product side.
Okay. Thank you.
Thank you. Participants, you may press star and then one to ask a question. Our next question comes from the line of Shubham Zope from Sicomoro Advisors. Please go ahead.
Yes, thank you for the opportunity. Am I audible?
Yes.
Yeah. My question is on the B2C segment. For several quarters, our B2C segment, predominantly the consumer business segment, has been degrowing. You constantly communicated that the consumer business has been, you believe that it is in a structural decline or at least stagnation. That is the main reason you go on for a diversification into the enterprise business. For this quarter particularly, you mentioned that a lot of your incremental growth for this quarter came from tailwinds to the consumer business. Do you still believe that the consumer segment structurally is on a decline trend? How do you see strategically the consumer business for you, for Quick Heal?
See, one is that we have to accept that consumer business is definitely degrowing. It's not the situation only in India. It's the global trend that we are seeing, and that has been there since almost a couple of years. At the same time, the efforts that we guys are putting on trying to make sure whatever market share we have and the holding we have, we should be taking advantage of that and making sure that we are still managing the whole market. The good news is that we can see that among the decline, Quick Heal is having the lowest decline in this, which is like we are able to hold quite well. The decline is lesser in terms of the activation for us than any other competition compared to because we do that comparison regularly. I'll also say that we cannot stay hand in hand.
We have to see how can we revive that. Is there an opportunity or is there a possibility or a potential of doing that with respect to the kind of changes that are happening in the market? That's where we keep on coming out with newer approaches, newer ways to address the decline and also try to make sure that we bring in the, I'll say, turn back to that market. With that process, at least we are able to, at least in last quarter, we are able to hold the decline and remain, I'll say, flattish. The way we are putting out with the schemes and pushing the partners to do more sales is helping us to at least create more awareness for moving to a paid version. That's what we are doing. We hope that this will, as you rightly said, structurally it is being impacted.
We are trying to make sure that we don't remain in that market altogether only. That's why we are also focused on enterprise segment. On the same front, we are giving as much as efforts on the consumer to make sure we remain the market leader.
Okay. Last quarter, you mentioned that predominantly the revenue was impacted by collection issues from some of the partners in consumer business. Any update on that? Are we still facing issues on collections, or is it somewhat elevated as compared to last quarter?
While Shubham, partly this has been resolved, there are still challenges. Hence, we are cautious while doing revenue. Two things I would like to add. This quarter, while Sanjay has responded, there were seasonal tailwinds, campaigns, and back-to-school things, which has helped us in getting a good amount of revenue. However, there are still some challenges, which are evident in our receivables as well, which has gone up by about INR 15 crore in the current quarter. However, we are confident that in the coming quarters, we'll come out of this situation as well.
Okay. Thank you. That was the question.
Thank you.
Thank you. Our next question comes from the line of Ashish Soni from Family Office. Please go ahead.
Sorry, what is R&D expense? What's the minimum level to sustain our business across both the verticals, enterprise and consumer? Have we reached the peak of the R&D expenses, whatever we have spent? Is there optimum we will like to continue sort of thing?
There is nothing called optimum, Ashish. I have in my speech also responded saying that we have started using automations in AI so that we get the best of the investments which we are making on R&D. Having said that, in the last couple of quarters, we are in the similar range of around INR 30 crore-INR 35 crore in our quarter, which we are spending. While our revenue should be growing at a much higher pace as compared to the R&D expenses, we are committed on our investments in R&D as we go forward. This industry is very dynamic. Unless we keep spending on our investments in R&D, we will not be relevant. That is the reason we have been doing it for the last couple of years.
Yeah, fruits of this R&D, because we have been spending and there is no revenue generation, but enterprises look promising. You say the fruits will come in the next one or two years, at least better than what has been in the past.
Yes, that's the plan. I would not be able to give you the exact guidance. However, that's the whole thought process while making these investments. We should get this benefit. One more thing, while as a prudent accounting policy, we are expensing off all our R&D investments. We don't capitalize anything, and hence, there's a pressure on EBITDA while we are making and working on our new products.
Okay. In terms of marketing, because now we are focusing more on the enterprise, is the marketing split towards that, or is it again proportionate with consumer? What's the split between the marketing for enterprise and consumer?
For consumers, the marketing is very different. It has to be mass marketing. For enterprise, we are doing different events, SMB Partner Connect, so that we get the maximum out of our investments in terms of engaging our partners. In the current quarter, we continue our investment in strengthening our sales team in enterprise. As we go into the new product range, unless we have the right manpower to sell it, it will not be successful. For the last couple of quarters, we are committing to strengthen our enterprise sales team.
Have we reached, like, in the whatever geographies you are targeting, has our sales team reached whatever you are planning? Now it's more of mining and trying to make inroads into new customers. Is that the fair assumption, or do you think it will be more geography expansion? Where do we stand right now?
We continue to expand our geography, our reach, our segments where Sanjay did say that we were focusing on SMB and then mid-market and some specific product for large enterprises. All those things will happen, and we have to continue our investment on the sales and marketing side. It has to be linked with the revenue. Once we start getting the revenue, we will keep on investing.
Okay, thanks a lot.
Thank you.
Thank you. Our next question comes from the line of Bhavin Vakil from PV Global Capital Advisors. Please go ahead.
Yeah, hi. Can you hear me?
Yes.
Thank you. Thanks for this. I've been hearing more about enterprise and consumer business. I just wanted to understand what is the expected inflection point where enterprise revenue takes over consumer? The second question is, currently, how many enterprise customers contribute more than INR 1 crore of revenue for us?
I will not be able to give you the inflection point when it will come. I can tell you that four years back, our consumer business was 80% and our enterprise business was 20%. Over the last couple of quarters, now it is 60/ 40. In fact, it was 59 / 41. That's what I recollect. We are continuously progressing in the direction where very soon our enterprise business will take over the consumer business. That is point number one. Sorry, there was a second question from you.
Yeah, I don't know whether I've seen it, but just wanted to understand how many enterprise customers would approximately contribute INR 1 crore of revenue for us each year.
Bhavin, we don't disclose these numbers to the outside world. We do have that level of customers. That's all I can say.
Understood. Fair enough. Just one more question on R&D. I understand you've got a lot of questions on R&D. I just wanted to understand what would be the steady-state margin profile once the R&D, you know, is completed for us.
I just mentioned that in our business, R&D is the key. Because the market is so dynamic, we have to be a step ahead as compared to hackers. I can tell you that as the revenue will grow in a certain percentage, our R&D will also grow, but with a lesser percentage. However, the investment in R&D will continue, and so will the sales. Both these things are two pillars at which our success will go.
Yeah, I just would like to add one thing that when it comes to cybersecurity, it is not a one-time innovation. It is a continuous innovation because every day there is a new challenge, new problem, new attacks happening across the globe. We have to be ready to protect our customers, not only new customers, but even the existing customers. Innovation doesn't stop here. When innovation doesn't stop, R&D costs will always continue what it is there. Understood. What are the risks for us, for enterprise customers specifically when you know there is some sort of a cyber hack which happens? Like anything, you know, major liability for us, or is it cap to revenue?
Bhavin, we do have all insurances in place, which covers us from any such type of risk. At the same time, it depends on the contract from customer to customer. Sometimes that's been capped to the revenue, sometimes it's capped to a particular number. We have covered it through various insurances.
Understood. Thanks a lot for this. Thank you.
Thank you, Bhavin.
Thank you.
Participants, you may press star and then one to ask a question. Participants, if you wish to register for a question, you may press star and then one. We have a follow-up question from the line of Bhavin Vakil from PV Global Capital Advisors. Please go ahead.
Yeah. Hi. Sorry, it's PV Global Capital Advisors. Just one more follow-up question. We expect our TAM to increase from INR 1,800 crores to INR 4,000 crores. What would be the possible breakdown between consumer, enterprise, and net worth for us?
If I recollect, the consumer is in the range of INR 600 - INR 800 crore in this. Out of this INR 4,000 crore, you can assume that about 20% is consumer and the rest, INR 3,200 crore, is the enterprise business.
Understood. What percentage would be export for us, like a rough idea?
Sorry, can you come again?
Export.
Export.
Exports, yeah.
We haven't been able to do that calculation. I'm not able to reach.
Hello.
If you're asking our share, it is in the range of 20%. I thought you're asking in the 4,000, how much is international?
Okay. 1,000 international, 800 would be consumer and balance. Sorry, I got this wrong.
In my revenue, in my enterprise revenue, 20% is coming from international. That is point number one. In the 4,000, the split is 20% consumer and around 80%, which is 3,200, is enterprise. In that 3,200, how much is going to be international? I need to check and come back. It is not publicly available to me as an enterprise.
Understood. In enterprise, what are our operating margins versus consumer?
We don't disclose these numbers. As we grow, as the number will go up, these margins will certainly improve.
Understood. Understood. It's an internal call, but any specific reason for not disclosing operating margins?
We don't operate with two different segments. We are saying that both the businesses are currently seen together. The size of the business used to be very small, enterprise business. As we grow up in the latter, we will try to share and give more information around the operating margins for both businesses separately. At this point of time, we are tracking it as one, which is, currently, this quarter, we had margins of about 11% EBITDA margins. It varies in that range.
Sorry, how much approximately?
11% is the number for the current quarter. 11% EBITDA margin.
Okay. EBITDA margin, okay, blended one.
Blended.
Sure. Thanks for this. I think if you know going forward, if you can disclose these kind of numbers, I think there could be more investor interest because I think, at least for me, I'm not able to figure out specifically how to evaluate the company considering lack of numbers. Thank you.
Feedback taken, Bhavin. I can tell you that consumer business, we are in an established phase. The margins there are certainly higher as compared to enterprise business. Your feedback is taken, and we will try to give those inputs, additional numbers in the coming quarters.
Oh, thanks a lot. Thank you.
Thank you.
Thank you. Ladies and gentlemen, as there are no further questions, I now hand the conference over to the management for closing comments.
Thank you, everyone, and wish you a very happy Diwali. Look forward. Thank you.
Happy Diwali to all of you. Thank you.
Thank you, management. On behalf of Quick Heal Technologies Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your line.