Are Quick Heal Tech latest results good or bad?

Quick Heal Technologies' latest financial results for Q2 FY26 present a complex picture of operational performance. The company reported a net profit of ₹7.91 crore, reflecting a significant year-on-year growth of 90.60%. Revenue for the same quarter reached ₹83.52 crore, which is a 13.65% increase compared to the previous year. This revenue growth is noteworthy, yet it is essential to consider the broader context of the company's performance.
The operating profit before depreciation, interest, and tax (excluding other income) turned positive at ₹9.23 crore, a substantial recovery from an operating loss in the previous quarter. The operating margin improved to 11.05%, indicating enhanced cost management. However, when viewed year-on-year, the operating profit and margin improvements are less impressive, as they are compared to a weak prior year quarter.

Despite these positive indicators, Quick Heal's half-yearly profit has seen a significant decline, collapsing by 70.66% compared to the same period last year, which raises concerns about the sustainability of its profitability. The company has also shown a heavy reliance on other income, which constituted a considerable portion of its profit before tax, suggesting that core operational performance may not be as robust as the headline figures imply.

Additionally, the return on equity (ROE) stands at a critically low 1.14%, indicating challenges in generating adequate returns on shareholder capital. This low ROE, combined with stagnant revenue growth over the past five years, suggests that Quick Heal is facing structural issues in a competitive cybersecurity market.

Overall, while Quick Heal Technologies demonstrated some operational recovery in Q2 FY26, the underlying challenges regarding profitability, reliance on non-core income, and competitive pressures remain significant. The company has experienced an adjustment in its evaluation, reflecting these operational complexities and market dynamics.