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    TAC Infosec

    TAC
    Information Technology·20 May 2026
    Management Summary

    TAC Infosec delivered robust financial performance for FY26, with significant YoY growth in operating revenue, EBITDA, and PAT, driven by its platform-based cybersecurity model. The company successfully achieved its 10,000+ client base target and expanded its global footprint. While net income was impacted by crypto fair value adjustments, core operating profitability remained strong. The US listing for CyberScope faced regulatory delays, but management reaffirmed its commitment to its long-term 2030 bold vision and continued innovation.

    Highlights

    5

    • Operating revenue increased by 88% year-on-year to ₹57.3 crores.

    • EBITDA grew by 81% year-on-year to ₹30.75 crores, maintaining a strong margin of 53.8%.

    • PAT increased by 78% year-on-year to ₹26.35 crores, with a PAT margin of 46.1%.

    • Achieved the 2030 Bold Vision target of 10,000+ client base across TAC and CyberScope ahead of schedule.

    • Expanded global operations to 7 countries and launched 3 new products, including Cyberscopes AI for smart contract audits.

    Concerns

    2

    • Net income for FY26 was negative due to a negative fair value movement of approximately ₹1.52 crores on crypto treasury.

    • The US listing for CyberScope's IPO was delayed due to new SEC rules implemented after January 16, 2026, and ongoing due diligence by NASDAQ.

    Key financials

    Single quarter

    06 metrics
    1. 01Operating Revenue₹57.3 Cr+88%YoY
    2. 02EBITDA₹30.75 Cr+81%YoY
    3. 03EBITDA Margin53.8%+0.8%YoY
    4. 04PAT₹26.35 Cr+78%YoY
    5. 05PAT Margin46.1%

    Order Book

    medium confidence

    Pipeline

    deal pipeline tcv

    H1 FY26 included two large partner-led orders valued at approximately $1,000,000, and additional partner business with Binance, Solana, and Polygon added approximately $1 million.

    "The company focuses on building a 10,000+ client base and achieving 100 million ARR, indicating a recurring revenue model rather than a traditional project-based order book."

    Source:
    Prepared remarks

    Guidance & targets

    3
    CategoryTargetPriority
    Client Base
    Total Client Base
    10,000+
    		High
    ARR
    Annual Recurring Revenue (ARR)
    100 million
    		High
    Profitability
    EBITDA Margin
    40%
    		High

    CyberSandia Operations Commencement

    Next quarter / This year onwards
    CurrentOperations almost about to begin
    TargetOperations fully commenced and contributing

    Why it matters

    CyberSandia is expected to strengthen US revenue relevance and contribute to the multi-engine cybersecurity platform strategy.

    CyberSandia strengthens US revenue relevance. There, I think we've been backing, we're running behind with the timeline, but...Nevertheless, we got a executive director for that firm, CybersSandia, the operations has almost about to begin.

    How to verify

    detailed_narrative[title='Long-term Vision & Strategy']

    Risks & concerns

    4
    RiskSeverity

    Negative Net Income due to Crypto Fair Value Movement

    Net income was negative for FY26 primarily due to a negative fair value movement of approximately ₹1.52 crores on crypto treasury, despite strong core operating performance. — Management acknowledged

    medium

    Delay in CyberScope US IPO Listing

    The US listing for CyberScope's IPO was delayed due to new SEC rules (5 million IPO cannot happen after Jan 16) and NASDAQ's request for more information regarding the larger amount being raised. — Management acknowledged

    medium

    Seasonal Slowdown in H2 for Western Markets

    H2 is typically a slower period for companies with significant revenue from Western countries (North America, Europe, UK), particularly November and December. — Management acknowledged

    low

    Misunderstanding of Cybersecurity Business in Indian Capital Market

    Management noted that cybersecurity is new for the Indian capital market, leading to comparisons with cybercrime and a lack of understanding of their platform-based model. — Management acknowledged

    low

    Q&A highlights

    5

    “FY26 should not be read as a revenue miss. That's what we got in a couple of emails, and that's a story narrative being projected by, you know, bad elements, I would say, not the shareholders. We've been getting great emails from the shareholders, the large shareholders who have, you know, a fair number of shareholding in the company. We've been appreciated, but some of the bad elements been speaking, you know, about FY26 revenue. 88% growth is not a small number. Revenue PAT maintained is not a small number. EBITDA maintained is not a small achievement. Promise of 10,000 customer base delivered that it's not a small number.”

    Management proactively addressed concerns about H2 performance and the perception of a revenue miss, emphasizing strong growth metrics and the achievement of strategic targets.

    2 min read6 chapters

    Detailed Narrative

    01

    FY26 Financial Performance Overview

    TAC Infosec reported robust financial results for fiscal year 2026. Operating revenue surged by 88% year-on-year to ₹57.3 crores. EBITDA demonstrated strong growth of 81% year-on-year, reaching ₹30.75 crores, with an impressive EBITDA margin of 53.8%. Profit After Tax (PAT) also saw significant growth of 78% year-on-year, totaling ₹26.35 crores, and maintaining a healthy PAT margin of 46.1%. The company highlighted that this growth was achieved through operating leverage without margin dilution.

    02

    Platform Business Model & Innovation

    The company emphasized its identity as a platform-based cybersecurity business, distinct from traditional manpower-heavy IT services. This model allows for scalable growth without relying on extensive hiring. TAC Infosec continues to invest heavily in innovation, particularly in the AI space, with new product launches like Cyberscopes AI, which can perform smart contract audits in 5 minutes, a task that previously took 5-10 days. This focus on AI and automation is central to its strategy for sustained profitability and growth.

    03

    Achievement of 10,000+ Client Base and Global Expansion

    TAC Infosec successfully achieved its 2030 Bold Vision target of reaching a 10,000+ client base across TAC and CyberScope, significantly ahead of schedule. This expansion represents a scaling from 100 customers to over 10,000 in just two years. The company's global footprint expanded from 2 countries (US and India) last year to 7 countries currently, supported by an R&D center and customer success teams in Canada. This client base is seen as a distribution model that will drive future recurring revenue (ARR).

    04

    CyberScope US Listing Update and Delays

    The planned US listing for CyberScope, which received SEC approval for a $5 million IPO in January, faced delays. Management explained that new SEC rules, effective after January 16, 2026, impacted IPOs. Additionally, NASDAQ is conducting due diligence as the company is now seeking to raise a larger amount ($7 million vs. $5 million initially planned). Despite the setback, management reiterated its commitment to the US listing, stating they are '90% there' and not in a rush, continuing innovation at CyberScope.

    05

    Impact of Crypto Treasury and Other Income

    While core operating performance was strong, the company's net income for FY26 turned negative. This was primarily attributed to a negative fair value movement of approximately ₹1.52 crores on crypto treasury, which offset the positive other income of ~₹1.5 crores generated before this adjustment. Management clarified that profitability was not reliant on treasury or other operating gains, and the core business generated almost all of the fiscal year's income, demonstrating the quality of its operating model.

    06

    Long-term Vision and Strategic Focus

    TAC Infosec remains firmly focused on its 2030 Bold Vision, aiming for 100 million ARR from its 10,000+ client base. The strategy involves building a multi-engine cybersecurity platform, including ESOF, Socify, CyberScope, and CyberSandia, with a strong emphasis on AI and automation. Management stressed that they are building for long-term value creation and global market relevance, not short-term quarterly fluctuations. They declined to provide FY27 guidance, asserting that future results would speak for themselves.

    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.