Quick Heal Technologies Limited (NSE: QUICKHEAL) Q2 2025 Earnings Call dated Oct. 18, 2024
Corporate Participants:
Purvangi Jain — Assistant Vice President
Vishal Salvi — Chief Executive Officer
Ankit Maheshwari — Chief Financial Officer
Analysts:
Deepak Sanskar — Analyst
Sankar Narayanan — Analyst
Pankaj Bobade — Analyst
Darshil Jhaveri — Analyst
Grishma Shah — Analyst
Mihir Manohar — Analyst
Manan Vandur — Analyst
Debashish Mazumdar — Analyst
Sanjay Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q2 and H1 FY ’25 Conference Call of Quick Heal Technologies Ltd. Hosted by VALOREM Advisors. [Operator Instructions]
I now hand the conference over to Ms. Purvangi Jain from Valorem Advisors. Thank you and over to you, ma’am.
Purvangi Jain — Assistant Vice President
Good evening, everyone, and a warm welcome to you all. My name is Purvangi Jain 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 of the financial year 2025.
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 risks 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 I would like to introduce you to the management participating with us in today’s earnings call and hand it over to them for their opening remarks. We have with us Mr. Vishal Salvi, Chief Executive Officer; and Mr. Ankit Maheshwari, Chief Financial Officer. Without any delay, I request Mr. Vishal Salvi to give his opening remarks.
Thank you. And over to you, sir.
Vishal Salvi — Chief Executive Officer
Thank you so much, Purvangi, and good evening, ladies and gentlemen. I am Vishal Salvi, CEO of Quick Heal Technologies Limited. Welcome to our Q2 FY ’25 earnings call and thank you for joining us today.
As we navigate through an era marked by rapid digitization, technologies such as 5G connectivity, cloud, AI and ML, which are shaping the way we live and work, this transformation and the rise of the hybrid workspace setup has led to a larger attack surface and more advanced cyber threats. Driven by our core purpose of innovation, simplicity, and security, our primary goal remains to protect individuals, enterprises, and government organizations from this ever-evolving threat landscape. Our journey started as a consumer antivirus company, and the reason for our three decades of existence is due to the trust that our end consumers have placed on Quick Heal.
The challenges of these consumers have evolved, and they are a constant target of financial frauds. Being a market leader in the consumer security domain, we have taken the onus upon us and launched Antifraud.AI, a groundbreaking innovation first of its kind to help customers prevent these frauds. Antifraud.AI reiterates our dedication to securing India’s future, allowing every citizen to participate in the digital economy with confidence. I would urge all of you to give it a try and experience the innovation.
Talking about innovation, it gives me immense pleasure to state that our products and solutions have received multiple accolades. In the first half of this year, we received yet another patent, taking the tally to a total of 9. Seqrite XDR has been awarded the prestigious AV-TEST approved advanced endpoint detection and response certification. Our endpoint security solution received a perfect score of 18 out of 18, featuring as the top product in the recent test conducted by AV-TEST, an independent global cybersecurity testing body. Quick Heal Total Security also received an excellent score of 17.5 out of 18 in a similar test conducted by the body. All this has been possible due to our malware analysis center, Seqrite Lab, which is India’s largest malware research and analysis facility, producing unmatched threat intelligence. In our commitment towards deep research and innovation to tackle the advanced malware and dynamic threat landscape, I’m happy that Sangamesh Shivaputrappa has joined us to head the Seqrite Lab.
Let me deep dive a little bit on our business and our go-to-market and performance. We have delivered a robust 11% growth in revenue and 238% growth in the EBITDA in the first half of this year. Despite market challenges, we have significantly improved our consumer business. We are committed to creating consumer awareness, leveraging social media platforms, and micro-influencers. We have started to work extensively to create the market demand and penetrate the product Antifraud.AI. We believe the twin offerings will create a synergy for each other.
However, our enterprise business saw a sluggish quarter, leading to a dampened growth than expected. This has been largely due to the non-closure of some of the key government orders and also our enterprise sales pivot, which is still a work-in-progress. As we move up the consumer segment in the mid and the large enterprises, we compete against the globally best solutions available to fulfill customers’ demands. It is heartening to see the initial success stories that we have been able to create.
We secured a contract with one of the largest logistics companies in the industry to modernize their cybersecurity stack, increasing visibility, and protection for their customers. For a leading media company, we solved the problem of securing remote access to its hybrid workforce through a zero-trust solution. Similarly, a staffing company, we elevated their security posture of the organization through our XDR protection stack. For a healthcare company, we replaced their existing vendor for our improved product performance and support the ecosystem.
Government is a key stakeholder to our journey, and we work hand-in-hand with the customers across nations, states, municipalities, and PSUs to succeed together. Important point to note here is also that in all the above stories, we were competing with the top global companies. While these are our initial success stories, we are striving together, replicating them on a scale.
With this, I would like to invite Ankit, our CFO, to walk you through the financial pop-up.
Ankit Maheshwari — Chief Financial Officer
Thank you, Vishal, and good evening, everyone. Our consolidated revenue for the quarter stood at INR73.5 crores, marking a 5% increase quarter on quarter. Having said that, on a year-on-year basis, there is a decline of 6% in the revenue due to flattish enterprise business, as Vishal highlighted earlier, alongside the headwinds in the consumer business. While the competitors in the consumer vertical have been struggling due to industry-level degrowth, we have shown resilience against market challenges, thanks to all the initiatives within the business that we have taken. However, we are mindful of improving our collections and are monitoring it very closely and working towards improving it in the next half year.
As we speak, the split between consumer and enterprise business remains at 62% and 32%, respectively. Our growth is aligned with our commitment to profitability. EBITDA for the first half of FY ’25 stands at INR5.7 crores, as against negative EBITDA of INR4.1 crores last year H1. Our PAT for the quarter stands at INR4.1 crores. We have taken several investment initiatives within the company, like initiation of Horizon-3 products development, leadership strengthening, etc. Through effective cost management, we have maintained steady expenses at INR71 crores.
We follow prudent accounting practices, expensing all R&D investments. Additionally,, we continue to invest in sales and marketing to enhance consumer awareness and bolster the Seqrite brand through events and sponsorships. The efforts will be further amplified as we would be focused towards category creation and awareness of our flagship product, Antifraud.ai. We are a cash-rich company focused on creating long-term value for our shareholders. We are focused on and geared up towards bettering ourselves in the next half of the year.
With that, I would like to open the floor for the question-and-answer session. Thank you.
Questions and Answers:
Operator
[Operator Instructions] The first question is from the line of Deepak Sanskar [Phonetic] from Trustline [Phonetic]. Please go ahead.
Deepak Sanskar
Good evening, everyone, and thanks a lot for the opportunity and congratulations for the launch of such a unique and need-of-the-hour product. So, firstly, what is the market size for the Antifraud product in India?
Vishal Salvi
So, thank you so much, Deepak, for your question. See, this is the first of its kind product that is getting launched in India. We are creating a new category, and this category is in the space of antifraud. And it is specifically tackling the growing challenges of fraud calls and fraudulent attempts which are being faced by unsuspecting consumers on their phones and on their computers. And as you know they are all focused on using the social engineering techniques to extract funds and extract money in an unauthorized manner from these consumers. And these numbers are only growing.
So, basically, this is a completely new category which will address it from a 360-degree point of view in terms of the foundational elements of cybersecurity, which is looking at fraudulent links and phishing attempts which have been made and rogue websites that are being connected by the users from the computers as well as their phones. But once it goes beyond that, we have also added features which will give you spam alert, fraud alerts in a proactive basis, show you all the hidden applications which are running on your mobile phone. It will show you the unintentional use of your mic and camera while your phone is not in use and so on and so forth.
And in addition to that, it has got cool features like unauthorized OTP access, not just on your phone but also on your parents’ phone or your loved ones. So, basically, it’s attempting to have a technology solution to address the problem of fraud on unaware customers. So, it basically has a huge potential in the market because of the category that has got created. And now we have an India-wide go-to-market plan through various ad campaigns and various plans that we have through our channel partners and alliances to get this app to as many customers as we can.
Deepak Sanskar
Okay. So, who are our real target segments? So, nowadays, we can understand that most of the financial transactions are happening through mobile phones, even in cities and even in rural areas. So, are we targeting, in a sense, all mobile phone customers or specifically a certain age group or certain income profile? How do we target that particular segment?
Vishal Salvi
See, this is a B2C product, right? And so, if you look at the fraud is indiscriminate. It is getting anybody who has money is getting impacted by frauds, right? So, basically, any citizen or any resident of the country which is having financial independence or finance and money in his bank accounts and he’s regularly doing transactions, is a potential victim. And so, those are also our potential customers. So, as you know this is a mobile-first product. And we have more than 850 million mobile users in the country and growing. So, from that point of view, it’s a humongous amount of opportunity that is available out there in terms of reaching out this product into them.
Deepak Sanskar
Okay. What is the revenue target we have in our mind for medium term, like over three to five years from this product alone?
Vishal Salvi
We are right now not sharing our revenue targets for this product. But, of course, on a quarter-on-quarter basis, we will be sharing with you how the revenues are panning out as far as this category is concerned. I can confirm to you that the product is already launched, and we have already started shipping as well as the downloads have already started from the Play Store and the App Store. And so, the revenue has already started getting generated from this quarter onwards.
Deepak Sanskar
Okay. So, lastly, from my side,
Operator
Sorry to interrupt you, sir. I request you to come back for a follow-up question.
Deepak Sanskar
Okay, sure. Thank you.
Operator
[Operator Instructions] The next question is from the line of Sankar Narayanan [Phonetic] from I-Thought Financial Consulting. Please go ahead.
Sankar Narayanan
Good evening, sir. Thank you for giving this opportunity. So, in the previous year, the percentage of R&D spending as a percentage of sales have been increased, but that haven’t translated much into the revenue part. Could you throw some light on that one?
Vishal Salvi
Thank you for your question, Sankar Narayanan [Phonetic]. See, the way we look at it is that we have started our journey as a company being a consumer antivirus company. And around seven years back, we pivoted also and diversified into enterprise security business. And from then on till now, like Ankit mentioned, the split between our consumer business and our enterprise business stands at 62% versus 38%. So, there’s a 38% diversification which has happened in the last so many years. And so, we have always adopted the strategy of diversifying and looking at any new growth areas of businesses in cybersecurity. And that’s what we are continuing to do.
So, just like we have made that growth and our core is shifting from consumer into enterprise, we also believe that once we start seeing the investment that we are doing now and in recent past in our Horizon-2 and Horizon-3 solutions, we’ll start generating revenues and increasing our business mix in the coming future. The opportunity is humongous, and we have just started to see a growth and our new product has started to generate revenues for us. So, I think we believe that our strategy is really working well. And cybersecurity is one thing where we have to invest now to start looking at the future in the next two to three years.
Sankar Narayanan
Thank you, sir. And one more question, can you give some guidance on this financial year on the revenue and margin and PAT perspective?
Vishal Salvi
See, we have not given any guidance. We don’t give guidance on the revenue, PAT, and our overall financial performance. All we can say, and we have said it consistently, is that we are focused on profitable growth. And that is what we endeavor to do in coming quarters as well. One thing we want to say is that we overall are focusing on a very long-term approach in terms of how we look at our investments and our plans. So, we would ensure that we are always staying true to that.
And like we had committed earlier, that we would be releasing new solutions and products. And I’m very happy to announce to you that we announced a new solution now in the market, which is a completely new category, and you can expect that from us. So, I think we are really looking at the future, but like I said, we don’t give guidance in terms of our financials and how we are going to do this year as well as future.
Sankar Narayanan
Thank you, sir. The last question is regarding your new product, Antifraud.ai. So, recently, Bharti Airtel also launched a feature which will be applicable for Airtel users, which will detect the fraud and spam alerts automatically. So, how different is this from the product that they have launched? And is there any specific features that you have information [Phonetic] on this product?
Vishal Salvi
Yeah, so basically, Bharti Airtel, all telcos are able to look at scams and scam alerts. And as you know, lot of the frauds are getting initiated through such scams. So, that’s really how we are there looking at their lens is about looking at frauds and scams coming out of the phones and alerting their customers. We definitely have that feature in our product, but our product has got a lot more features that I just talked about earlier. And so, our product is a 360-degree solution, which is covering a holistic fraud management, and not just from a telecom point of view.
So, we have carrier features, we have phone features, we have cybersecurity features, and in addition to that, we have banking process control features. All of these four combined together give a holistic solution for fraud management.
Sankar Narayanan
Thank you, sir. I hope this product succeeds. Thank you for this opportunity.
Operator
Thank you. The next question is from the line of Pankaj from Affluent Assets. Please go ahead.
Pankaj Bobade
Hello. Am I audible?
Vishal Salvi
Yes, Pankaj, go ahead.
Pankaj Bobade
Yeah, thanks for taking my question. Well, I’m new to this company. Just wanted to understand what had gone wrong post FY ’22 that our margins collapsed from 30-plus percent to below 10% now.
Vishal Salvi
So, can you just repeat your question? What has gone wrong between FY ’22 and now? Is that what your question is?
Pankaj Bobade
Yes. Our margins have completely collapsed from, say, 30-plus percent to current less than 10%.
Vishal Salvi
Yeah, I got now. See, I think, Pankaj, see what we have been saying is that we are reinvesting all our margins and profit into our new set of technologies. And the company has been constantly increasing its R&D spend to make sure that we are building new products. And since the last two years, if you’re tracking our company, you will find that we have introduced products like zero-trust network access, extended detection and response, data privacy solutions. And so, as a result of all of this, we have diversified our portfolio in the enterprise security spend. And all of that investment, we have been actually getting through the profits generated by the company from the core technologies and core products. So, that is a conscious call that we have taken in the last three, four years to make sure that we are able to create a diversified and a sustainable growth business for the future.
Ankit Maheshwari
Pankaj, in addition to this, Ankit here. So, in addition to this, we have seen some headwinds in our consumer business because of which our revenues were down, especially in the consumer side of things. And hence, a, there was reduction in revenue; and b, we were investing into new technology, which Vishal was referring, in the enterprise side of things. So, these two things lead to reduction in EBITDA percentage.
Pankaj Bobade
So, how long will we take to regain our past legacy?
Vishal Salvi
See, Pankaj, as I said, again, we don’t give guidance in terms of how long it will take. All we can say is that we are focusing on consistent, predictable, profitable growth. And that has been our endeavor. Of course, we are also readying the company for the future scale and growth. In past, we have talked about how these investments have generated increased serviceable operatable market for us. And we are constantly focused on seeing how we can, not just looking at from a product point of view, but also looking at a new set of customers.
So, we have been traditionally a micro and SMB player, and we are now getting into mid-market and the lower end of large enterprises. And for that, we are doing a significant pivot, not just in terms of our product, but also in terms of our sales organization. And that is something which is work in progress. If you look at the history of all the cybersecurity companies in the world, it takes time and effort to really start seeing how that growth happens. And that’s really the journey that we are on right now.
Pankaj Bobade
Yeah, agreed. I take your point. But I just wanted to know, at least, can you please guide the roadmap for monetization of the products which you have developed in last two years?
Vishal Salvi
Yeah, there is a clear path. There is a clear path for monetization. If I segment our products into different categories, the mature and core products are already giving us a very significantly higher return versus the ones which are just got introduced, which are having a breakeven path, and the ones which are currently in development.
So, we do have a detailed plan and a P&L for each of the product segments that we have. We don’t, right now, give guidance publicly in terms of how each of those plans are defined. But yeah, of course, we do have a detailed plan and a commitment to our board as well as founders on how we are going to break even each of these categories.
Pankaj Bobade
At least, can you guide, out of this INR300 crores odd of top line, how much was contributed by the mature products along with the EBITDA?
Vishal Salvi
Yeah. I can’t give you the EBITDA split for that. Pankaj, let me give you, see, something which we have mentioned in past also, is that our core technologies, between consumer and enterprise together, roughly is calculating between 85% to 90% of our revenue right now. So, the new product that we have just introduced in the market in the last 1.5 years has started generating 10% to 15% of our revenues.
Pankaj Bobade
But they are eating away almost all of the profit which has been generated by the old products, right?
Vishal Salvi
So, the way I would put it is that, that is how the investment cycle is for any new incubation and any new product. So, we don’t see them as eating away the profits. We see them as investments. We don’t capitalize. We basically expense out all our investments in the same year’s books. So, that’s been our strategy for innovation, as well as adding new products in the market.
Pankaj Bobade
At least, can you help me at global level, the companies which are your peers, how long did they take to regain their profitability after a launch of any new product? If you can help me with that, or with your own experience, means earlier, whenever you launched a product, how long did it take to gain currency and become profitable or breakeven?
Vishal Salvi
Yeah. So, I can give you a broad brush on this, Pankaj, and you can do your research afterwards. The top cybersecurity product companies in the world, which are doing well right now, would have taken anything between 10 to 15 years to break even. And there are some which are yet to break even in spite of that. So, that is the general trend that we have seen for companies to break even globally. So, you should see our journey starting around four or five years back when we talk about a new set of investments that we are doing in enterprise security.
Pankaj Bobade
So, you are already five years past that phase, right?
Vishal Salvi
Around four, five years, yes.
Pankaj Bobade
Okay. And how many of [Speech Overlap]
Operator
Sorry to interrupt you, sir. I request you to come back for a follow-up question.
Pankaj Bobade
Sure, sure.
Operator
Thank you. The next question is from the line of Darshil Jhaveri [Phonetic] from Crown Capital [Phonetic]. Please go ahead.
Darshil Jhaveri
Hi, good evening, sir. Thank you so much for taking my question. Some of my questions have already been answered. So, sir, just wanted to know, like on a ballpark, what’s the basic R&D spend we are planning to do in the current year and going forward? It’s a sizable chunk of our expense.
Vishal Salvi
Yeah. Thank you, Darshil [Phonetic], for your question. See, I think we are doing two things when it comes to our R&D spend, okay? We announced in the previous two quarters that we had got the board approval to start investment in our Horizon-3 products, and that work has already started. The good thing for us is that because some of our core technologies are already stable, we can have some level of flexibility of using some of our R&D talent into these new technologies. The second thing that we do is to look at all avenues and opportunities to optimize and improve our return on investments on R&D expenses. And the third thing is the incremental additional talent which is required or specialized skill is where we augment and hire from the market.
But broadly, the core of our R&D team is already there in place. What we are doing is making sure that we augment it, we do tactical investments which are required to have those skills. And so, we feel ourselves are in a very comfortable space in terms of managing the cost related to R&D and control them vis-a-vis our aspirations for all the new products that we are developing. So, that’s really how we are looking at it. So, we don’t expect our R&D cost to go and significantly grow, but they will maintain at the rate they are and maybe incrementally we’ll add the skills which are required for us.
Darshil Jhaveri
Okay, fair enough, sir. And just, sir, we now talking about like we’ve launched our new products and some more products we are into development phase. So, I just wanted to know a typical cycle you said maybe it takes 10 years to break even. But what is the full life cycle? How much time does it go to develop it? And is there a possibility that we’ve been developing something for some time, but then the market doesn’t accept it, or it’s now redundant or something like that? So, you know what, could you just brief us a bit about your thoughts about how you mitigate those risks? It’s not just too much gestation period and just making the product, right?
Vishal Salvi
Yeah. See, first of all, I wanted to say that we are the only full-stack cybersecurity company from India. Okay? And so a lot of the work that we are doing is very well tried and tested in the sense that when you talk about zero-trust network access, when we talk about data privacy, when we talk about mobile security, we talk about extended detection and response solutions, all of these are well defined solutions, which are well established in the global market, but obviously has a potential from Indian context, right?
And so, you can never go wrong once we know exactly how these technologies are going to pan out as far as India is concerned, and even globally in future, once we start adding more innovation and scale to these products. So, that’s really what goes into our planning. And in the consumer space also, we’ve been very strong, and we have lot of IP and a lot of research that we have done over a period of years. So, we have the largest malware lab in the country, and so we really deeply understand what’s happening. And so, to pivot to a technology like antifraud is something which is a natural adjacency for a company like us to really create a new set of solution to address a completely new market.
Darshil Jhaveri
Okay, fair enough. So, yeah, that’s it from my side. So, all the best. Thank you.
Operator
Thank you. The next question is from the line of Grishma Shah from Envision Capital. Please go ahead.
Grishma Shah
Good evening to the management team. If you could highlight or share more about what’s happening on the consumer side of the business, if you could elaborate a little bit, that would be helpful.
Vishal Salvi
Yeah. Thank you, Grishma. So, basically, there are some headwinds in the consumer business and antivirus business in terms of the demand and how the overall adoption of consumer antivirus has been. Within that headwind, as you have seen our performance, we have been one of the top performers in the market, and we do occupy a market leader position, and our products are also valued at a premium for the value that we provide to our customers. So, we are ensuring that we will show a respectable growth while overall the market is degrowing. Okay?
Now, while we do that, we are extremely happy that now we have launched Antifraud, which will give a boost to our consumer business and add one more category in our business mix to look at and then drive the growth, right? So, that’s really how we are looking at the consumer market.
Grishma Shah
Okay. So, even in quarter two, this market has degrown and we’ve held on. Is that a fair assumption?
Vishal Salvi
Yes.
Grishma Shah
Okay. And therefore, the gross margins or overall operating margins in this business segment would have also been slightly under pressure?
Vishal Salvi
I think we are doing okay. We are still holding on to our prices. And because this is a well-oiled a business model for us, we’ve been doing it for last three decades, it’s a very mature business model, and therefore, very stable when it comes to margins and how we drive it. Of course, like Ankit has mentioned in his initial remarks, we do have some work to do in the coming quarters to improve on our collections. But otherwise we are doing okay as far as margins are concerned.
Grishma Shah
Okay, fine. Thank you and good luck.
Operator
Thank you. The next question is from the line of Mihir Manohar from Carnelian Asset Management. Please go ahead. Mr. Mihir, your line has been unmuted. Please go ahead with your question.
Mihir Manohar
Hello. Hi, am I audible?
Operator
Yes, sir.
Mihir Manohar
Yeah, sure. So, I wanted to understand on enterprise part of the business, 17% of the enterprise business was on cloud in FY ’21, and now 28% is on cloud. So, how does it change the revenue recognition? I wanted to understand that. And second question was on the working capital. How should one see the working capital normalization happening?
Vishal Salvi
So, I’ll ask Ankit to answer the second part. But let me answer the first part of your question, Mihir. The revenue recognition is based on how we agree on the EULA or our agreement with the customers and how we are selling the licenses of our product. So, it is by product and not by cloud consumption. Okay? So, I think that’s the answer to your first question. You want to answer the second part?
Ankit Maheshwari
Yeah. So, just to add on the first part, when we do the revenue recognition, so we have done product-by-product analysis as per IAS 15 international accounting standard Ind AS, whatever it is, we are following that policy. So, Mihir, can you repeat your second part regarding working capital? Mihir?
Mihir Manohar
Hello. Am I audible?
Ankit Maheshwari
Yeah, I can hear you now.
Mihir Manohar
There is some issue at my end. So, basically, how should one see the normalization of working capital by the end of the year?
Ankit Maheshwari
So, difficult to answer this question at this point of time. But as I said in my opening remarks as well, that we are currently focused on getting the collections back to business. So, there is a lot of effort which has been made, especially in our consumer segment, where we will be focusing on the collection in the next six months.
Mihir Manohar
Sure. Yeah, that’s it from my side. Thank you.
Ankit Maheshwari
Thank you.
Operator
Thank you. The next question is from the line of Manan Vandur from Wallfort PMS. Please go ahead.
Manan Vandur
Thank you so much for this opportunity. And so, I had two questions. First question is on, so out of the INR4,000 crores market that we have given in the PPT, around FY ’26-’27, the whole total addressable market, how much are we planning to cater to?
Vishal Salvi
So, Manan, actually, when we talk about serviceable operatable market, that is the market available for us. So, that is what we’ll focus on. So, the entire market is something, that number is what is the available addressable for us.
Manan Vandur
And we would be the only person to address this, or we have a competition also in this market?
Vishal Salvi
No, we will have competition in this market, and we will have other players also in the market.
Manan Vandur
But we will be the largest player, right?
Vishal Salvi
No, no, we will. This is the market available for us. We will aspire to take a percentage of that market, and we’ll keep on growing on that percentage. But right now, we are not the market leaders, nor we expect us to be a market leader by 2027 in that market at that point of time.
Manan Vandur
Okay, so the percentage that you mentioned, how much can we take?
Vishal Salvi
So we don’t disclose that right now, Manan. But I just wanted to give you some additional nuances to my answer. Okay? So, we are the market leader in one segment which is our consumer AV. And so, consumer AV India, we are the market leaders. We have 33% to 35% of the market share. So, that is number one. And the second thing which I also wanted to clarify is the Antifraud launch that we have done also we are the first one to launch it, right? So we don’t have any competition in that space right now.
Manan Vandur
All right. Understood. And the second question that I have is the new products, like the Antifraud.AI that we have launched and some others also, which we might launch in the future, will these new products will do better than our old products? It should do better. So, which is I’m asking, will these products do better than our old products?
Vishal Salvi
Yeah. So, Manan, the way to look at is that we are diversifying when we introduce new products. And so, then we will have a set of our core products and technologies right now, right? And when we diversify, these new products will start gaining momentum for us and revenue share. And so, over a period of time, we’ll have more diversification happening.
But the core remains core for a period of time until that mix changes. So, like I said, if you look at the consumer antivirus and enterprise antivirus together forms our core right now, which is around 85%. But that used to be only consumer AV, 100% around seven years back. So, lot of things have changed over the period of years to have a better product mix into our business model. And by introducing these new products, we are hoping and we are aspiring to have a similar diversification happening in the coming years for us.
Manan Vandur
Okay, so these new products that we are having, do you think they will, let’s say, like, five, 10, whatever years ahead in life, these might also take a sizable chunk. So, right now, we are at 80% and the new products are 15%. So, this might go to 30%, 40%, 50%.
Vishal Salvi
Yeah. Actually, all our products, we have a full conviction and confidence, and only then we have launched this. So, we have full confidence that they will add a good amount of revenue in future for us. So, the way you are articulating is how we are looking at it in future, Manan.
Manan Vandur
Yeah, right. That’s it. Thank you so much.
Operator
Thank you. The next question is from the line of Debashish Mazumdar from Svan Investments. Please go ahead.
Debashish Mazumdar
Hi, Vishal, Ankit. Good evening, and thank you for taking my question. I have two questions. First one is on your new product, which you have launched. First of all, congratulations on the new product launch and starting to create a new category. Just wanted to get some sense that what I have understood by discussing with you for last six, eight months, that you are trying to pivot towards more into a B2B business. Why launching a product in a B2C business and investing there?
So, that is first part. The second part is our historical experience suggested that it is very difficult to monetize any mobile-related product in India. So, why to get into that business again? So that is on the new product category.
And the second one is on B2B business. If I see the numbers, it is getting very, very difficult for us to predict that how the trajectory would be. So, I’m not asking for any guidance or anything. But can we get some amount of lead indicators, whether it is number of clients signed or number of licenses getting sold, so that we can build some amount of predictability on our B2B business. So, these are the two questions I have.
Vishal Salvi
Yeah. So, me actually coming from the Indian banking industry where I worked for two decades, I’ve actually seen the consumer fraud in India and also overall growing significantly. And it has been unabating, right? So, it is constantly creating a bigger challenge for the ecosystem, right? And there have been humongous amount of investments and money being spent on B2B2C products for antifraud so far. Okay? But because it’s B2B2C, it becomes a big challenge for adoption for the common citizen because they work with different banks. One consumer may be working with various banks. So, it doesn’t pick up.
And so there was clearly an opportunity for us to look at a direct B2C solution. And also, while it is a completely new category, but it builds on the core of Quick Heal as a company for its commitment towards fighting this problem. See, because when you look at Quick Heal, you should look at Quick Heal not as an antivirus company. We are in the business of protecting end consumers.
Now, if that is our mission, then we need to recognize that when the issues have moved from antivirus to fraud, it is our responsibility to do something about that. And we want to be known as the company which is safeguarding our consumers. And so, it was a very natural and logical step for us, right? That was number one.
And number two, because a lot of the things that we have leveraged our existing power of understanding the risk and threats which are happening, the use of AI. And so, we have used and used a lot of these things and added some additional features and functionality, which we believe can be pathbreaking for Indian consumer.
And so, then it was a no-brainer, Debashish, to go into it. And it looked like a very important aspect and a mission to solve. And hence, commitment to Antifraud.AI. And I think in the last previous quarters also, we have always hinted, although not mentioned it as much, but we always hinted at working on these issues, these areas, and coming up with announcements in near future.
Ankit Maheshwari
Just to add, Vishal. So, Debashish, we have this experience in B2C business. We have three decades experience. So, we want to capitalize that as well. And we are confident that by doing this, we are doing the right thing. Sorry, Vishal, you can continue.
Debashish Mazumdar
Sorry, just to harp on the same point. So, do you think that in Indian customers, there is a change in behavior? Because in the past, we have seen several times that despite trying to create awareness in the client’s mind, normally B2C clients doesn’t want to pay for this kind of product, especially when it comes to mobile. So, do you see any change in behavior of the customer?
Vishal Salvi
See, Debashish, you know what we are thinking is, we don’t want to stereotype an Indian customer because the same Indian customer is actually adopting a lot of global apps, right? So why can’t they do it? And if, for example, a Blinkit can be adopted as an app in India, which is mobile-first for some other business model, the same model can be adopted for securing and fool-proofing you from a frauds point of view, right? So, I think we know that it is a challenging business model, but we are going with an open mind and embracing that challenge. But because of our understanding of how this pans out in the computer business, we will be able to navigate these challenges and ensure success. So, I think your point is well taken, but we are looking at how do we cover all our bases to ensure our success here. And so far, the feedback has been very good received from customers as well as our partners.
Debashish Mazumdar
Sure. Just one observation. When you try to download this through App Store, it is showing a four-year-old product. So, I’m not very sure that there is any mistake there. I was just checking. So, if you can check that, it is showing a four-year-plus-old product in the App Store.
Vishal Salvi
Sure. We’ll have a look. Maybe it’s a different app that is popping up for you, but we will look at it, Debashish. We’ll definitely circle back with you on that.
Debashish Mazumdar
Sure, sir. Thank you so much. And the second question on the predictability, if we can get some direction towards the predictability of the B2B business, that will be very helpful.
Vishal Salvi
See, we have already been sharing our business mix. We have this time also shared — so we talked about lead indicators and some KPIs. We are constantly seeing how we can start disclosing more KPIs. So, this time around, we have shown how our enterprise business is changing from a cloud versus on-prem. So, that’s a very important KPI to track, which will show the maturity of our business and modernization of our business. And we will continue to add more and more features as we go along. And your point is well taken.
Debashish Mazumdar
Sure, sure. Thank you so much, and wish you best of luck.
Operator
Thank you. The next question is from the line of Sanjay Shah [Phonetic] from Pranishtha [Phonetic]. Please go ahead.
Sanjay Shah
Hi. Can you just talk a little bit more about the enterprise market and how it’s evolving? Because a large part of the discussion I think we were focused on the new product and the B2C. So, just your overall perspective on the experience, the transition. Of course, you’ve given the numbers, and how do you see that panning out over the next one to two years?
Vishal Salvi
Thanks, Sanjay. Sanjay, I think one of the things we are extremely happy about is that we have now started to work on the new set of solutions like SWG, which is your secure web gateway, or your cloud security access broker. We’re also developing a malware analysis platform, a threat intel platform, and all of these are back of the deep research that we do and the deep amount of technologies that we have created through our Seqrite Labs.
So, extremely bullish and happy about how we are progressing as far as these new solutions are concerned. We are focusing on how to pivot from a sales motion point of view to the mid-market segment. And that is, like I said, a work in progress, and we are adding leaders and mid-management team members in our sales organization to bolster our team and drive that. So, overall, if you look at, there’s a huge potential. If you see the recent events and incidents unfolding globally as well as in India, you’ll find that humongous amount of cybersecurity breaches and incidents which are happening.
So, the awareness levels of enterprises is only growing. The expectation from the government of India, through regulations or bankers, even SEBI has come out with a very detailed cybersecurity guidance and policy framework which has been launched recently, which is very, very comprehensive. So, all of this is heightening the need and the requirement for cybersecurity to be adopted in large enterprises and organizations. So, I think clearly we see a huge potential for us because of these different trends that I just talked about, Sanjay.
Sanjay Shah
That’s wonderful. Thank you so much. And would you mind, Vishal, also talking a little bit more about the data privacy and how that’s evolving?
Vishal Salvi
Yeah, I think very interesting is that obviously now India is at the cusp of launching the enforcement of the data privacy as far as India is concerned. And you know that the law and act has already been passed in the parliament. We are now just waiting for the final enforcement guidance and guidelines from Government of India.
We, in one of these investor calls, we had mentioned that our anticipation was that this will be announced in Q3, which is this quarter, and we can start seeing a positive impact of that in terms of our pipeline and our closures in Q4 and Q1 onwards from next year. So, I think we, generally speaking, Sanjay, what we have seen with the experience of GDPR in Europe and California Data Protection Act in U.S., that generally, whenever such things come in, not just the data privacy, but also the overall cybersecurity investment to grow around 5% to 7% in the country where the act gets launched.
So, we expect that same thing will happen as far as India is concerned. And it’s going to be a very positive move for India and the digital adoption of India in the country as well as how people are seeing India as a country.
Sanjay Shah
No, thank you. This is very exciting. So, thank you. Thank you for the comments. Thank you.
Operator
Thank you, ladies and gentlemen. We’ll take this as the last question. I now hand the conference over to the management for closing comments.
Ankit Maheshwari
So, before that, I just want to clarify, Debashish, if you are here, four plus is the age recommendation and not age of [Indecipherable]. So, we thought just to clarify right away.
Vishal Salvi
Okay. I think you can ask the next question.
Operator
This was the last question.
Vishal Salvi
Okay. All right. Thank you so much, everyone, for a very engaging conversation and asking a variety of different questions. I hope you found this useful. Thank you so much for joining today and look forward for the next quarter call as well. Thank you.
Ankit Maheshwari
Thank you, everyone. Good day.
Operator
[Operator Closing Remarks]