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    TAC Infosec

    TAC
    Information Technology·12 May 2025
    Management Summary

    TAC Infosec reported a strong FY25 with total income of ₹32.2 crores, up 160% YoY, and PAT of ₹14.84 crores, up 135% YoY. The company significantly expanded its customer base to over 6,000 through organic growth and the strategic acquisition of Cyberscope, while maintaining a gross margin of 52%. Key accreditations like ISO 17025 and IOXT lab approval were achieved, reinforcing its market position, despite a negative market reaction on the results day.

    Highlights

    8

    • Total income for FY 2024-25 was ₹32.2 crores, 160% higher than the previous year.

    • PAT for FY 2024-25 was ₹14.84 crores, 135% higher than the previous year.

    • Gross margin maintained at approximately 52%.

    • Acquired 3,000 new clients organically by March 2025, exceeding targets.

    • Acquired 60% of Cyberscope, adding 3,000 customers and new smart contract audit capabilities.

    • Became one of the first cybersecurity companies to achieve ISO 17025 by A2LA, a global accreditation.

    • Joined the elite group of just eight IOXT-approved security labs worldwide.

    • Company is debt-free with no long-term loans or debts.

    Concerns

    2

    • The stock went down 20% on the result day, indicating market expectations were not met despite strong operational performance.

    • Cash conversion cycle increased from 160 days to 359 days in FY24, though management stated a strategic shift to upfront payments has improved this.

    What Changed1

    vs Q2 FY26

    Guidance items8 → 6 (-2)

    Key financials

    Single quarter

    05 metrics
    1. 01Total Income322 Mn+1.6%YoY
    2. 02PAT148 Mn+135%YoY
    3. 03Gross Margin52%
    4. 04Operating Revenue H1124 Mn
    5. 05Operating Revenue H2181 Mn

    Order Book

    high confidence

    Total Value

    6,000 customers

    as of 2025-03-31

    quantified

    Inflow this qtr

    6,000 customers

    "The company's 'order book' is primarily represented by its growing customer base. In FY25, TAC Infosec added 6,000 new customers, comprising 3,000 organic additions and 3,000 from the Cyberscope acquisition, bringing the total customer base to over 6,000 by March 2025."

    Source:
    Prepared remarks

    Capital allocation

    5
    high confidence
    CategoryHeadline
    M&A

    Worldman Limited

    acquisition · closed · Consideration ₹NaN (undisclosed)

    M&A

    Cyber Sandia

    acquisition · closed · Consideration ₹NaN (undisclosed)

    M&A

    TAC Cyber Security Consultancy

    acquisition · closed · Consideration ₹NaN (undisclosed)

    M&A

    Cyberscope

    acquisition · closed · Consideration ₹NaN (undisclosed)

    Liquidity

    Liquidity disclosed

    Company maintains substantial funds in bank accounts and a healthy cash balance.

    Guidance & targets

    6
    CategoryTargetPriority
    Customer Base
    Total Customers
    10,000
    		High
    Customer Base
    Additional Customer Base
    4,000
    		High
    Revenue
    Revenue Growth
    Maintain FY25 growth trajectory
    		High
    Revenue
    Revenue
    ₹100 crore
    		High
    Profitability
    EBITDA Margin
    Maintain FY25 level
    		High
    Per-Customer Revenue
    Average Per-Customer Revenue
    $2,000 to $10,000
    		Medium

    Customer Base Growth

    next quarter / by March 2026
    Current>6,000 customers (as of March 2025)
    TargetProgress towards 10,000 customers

    Why it matters

    Achieving the 10,000 customer target by March 2026 is a key strategic goal for becoming the largest Vulnerability Management company.

    So, our major goal remains the same-to become the world's largest Vulnerability Management company and acquire 10,000 clients by 2026.

    How to verify

    order_book.value.amount

    Risks & concerns

    3
    RiskSeverity

    Market perception and stock performance

    Despite strong results, the stock experienced a 20% lower circuit on the result day, indicating market expectations were not met. — Analyst downplayed

    medium

    Cash conversion cycle

    The cash conversion cycle increased from 160 to 359 days in FY24, though management has implemented strategies (upfront payments) to address this. — Analyst acknowledged

    low

    Tariff war impact

    Analyst inquired about potential impact of tariff wars, but management stated no impact has been observed so far. — Analyst not addressed

    low

    Q&A highlights

    8

    “The stock market is not in our hands. As a founder and CEO, that is not my area of interest. I would rather invest my energy and time in improving our strategy, execution, new product development, and creating new synergies with partners, which we will see more of in the future.”

    Addresses investor concern about the stock's performance post-results, with management emphasizing focus on operations over market fluctuations.

    asked by Harsh

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Financial Performance in FY25

    TAC Infosec delivered robust financial results for FY25, with total income reaching ₹32.2 crores, marking a significant 160% increase over the previous fiscal year. Profit After Tax (PAT) also saw substantial growth, climbing 135% to ₹14.84 crores. The company successfully maintained its gross margin at approximately 52%, demonstrating efficient operations despite rapid expansion.

    02

    Aggressive Customer Acquisition and Expansion

    The company's customer base expanded dramatically in FY25, growing from 103 customers in April 2024 to over 6,000 by March 2025. This growth was fueled by 3,000 organic client acquisitions and an additional 3,000 customers gained through the strategic acquisition of Cyberscope. TAC Infosec aims to reach a total of 10,000 customers by March 2026, solidifying its position as a global leader in Vulnerability Management.

    03

    Strategic Acquisitions and New Capabilities

    FY25 saw several key acquisitions, including Worldman Limited, Cyber Sandia, and TAC Cyber Security Consultancy. The most impactful was the 60% acquisition of Cyberscope in February 2025, which brought over 3,000 customers and specialized smart contract audit capabilities. Cyberscope reported revenues of $1.2 million and profits of $0.64 million as of December 2024, with a 52% profit margin, acquired at a 3.5 PE ratio, strategically enhancing TAC's Web 3.0 security offerings.

    04

    Industry Accreditations and Partnerships

    TAC Infosec achieved significant industry recognition, becoming one of the first cybersecurity companies globally to obtain ISO 17025 accreditation by A2LA. The company also joined an elite group of only eight IOXT-approved security labs worldwide. Furthermore, a partnership with Google as a MASA Security Assessor for Mobile Application Security Assessment and as a partner for CASA (Cloud Application Security Assessment) was highlighted, underscoring its technological leadership.

    05

    Capital Allocation Focus: R&D and Market Penetration

    The company emphasized its debt-free status and strong cash reserves. Capital is being primarily deployed into product development and R&D to enhance existing solutions and build new ones. Significant efforts are also directed towards market penetration, particularly in the Middle East (UAE and KSA) and exploring opportunities in Europe and the UK. Domestically, the focus is on cyber defense and government sector business, especially in cyber warfare.

    06

    Future Outlook and Growth Strategy

    For FY26, TAC Infosec aims to maintain the growth trajectory and margins achieved in FY25, with a public goal of ₹100 crore in revenue and 10,000 customers. The strategy includes increasing per-customer revenue from the current average of $900 to $2,000-$10,000 through cross-selling and upselling. The company plans to utilize IPO funds for future expansion, having covered current operational and R&D expenses through cash flow.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.