Transcript of Earnings Call, September 30, 2025.

Date

November 6, 2025

To,

National Stock Exchange of India Limited

Exchange Plaza, Bandra Kurla Complex

Bandra (E), Mumbai - 400051.

Dear Sir/Ma’am,

Subject

Update on Earnings Call -Transcript of Investor Meeting

Ref

TAC Infosec Limited (SYMBOL/ISIN: TAC/ INE0SOY01013)

Dear Sir/Ma’am,

In continuance of our earlier intimations dated October 27, 2025 & October 31, 2025, November 1, 2025 and Pursuant to

Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find Transcript of the

Company’s Earning Call held on Friday, October 31, 2025 at 04:00 P.M. to discuss the Company’s financial results for the

Half Year Ended on September 30, 2025.

This is for your information and record.

Thanking You,

Yours faithfully,

For, TAC Infosec Limited

Chinmay Tikendrakumar Chokshi

Company Secretary

FCS

13425

Place

Punjab

TAC InfoSec Limited

Transcript

Earnings Call for Half Year Ended September 30, 2025

October 31, 2025,

Cindy Zekio 0:05

FY26 period ended for September 2025. We have with us our CEO Trishneet Arora and we also have the CFO

Malkit Singh Bharaj. They will share the record numbers and the Major achievement of the company this month.

I'll give a hand to the CEO, Trishneet. It.

Trishneet should be with us, if I'm not mistaking.

Trishneet Arora 1:27

Hi, good evening everyone. Can you hear me?

Cindy Zekio 1:31

Uh, we can hear you now, yeah.

Trishneet Arora 1:33

Thanks Cindy for the introduction. Really appreciate. Thank you everyone for joining today. First of all, sorry for scheduling the earning call little delay. We have scheduled it because of keeping Diwali in mind the festive season.

So thank you everyone for joining today. Siddhi, can you run through the presentation please? Appreciate. So everyone, amazing H1 we have you know the targets, we have overachieved the targets with the help of team.

The real effort goes to team, the real appreciation goes to team by their efforts, we could achieve that the overachieved our targets of both revenue and profit. Today over the call, we'll go through some of the major key achievements along with the way forward plan on during this call and yes, happy to talk to everyone and uh, answer all possible questions that we can answer today within the given time frame. Uh, yes, uh Sidhi, we can run through that. So total income in the so we are trying to compare that at a glance comparative to the last first half and this first half. So the last first half our revenue was 13.1 crore which this H1 is 137% higher. From on year-on- year basis which is 30.6 crore. Then our profit after taxes in H1 was 6.5 crore. So this one our PAT is 15.5 crores which is 138.5% higher year-on-year basis. We are very thankful for all of your support. By that we could achieve all of these possible numbers and the interesting part is that the bat is higher, 138.5% and also comparatively the person.

It is quite higher after the ESOP cost and also the tax rebate we had in the last three years, which we don't have this year. Despite that our number is way higher comparative to year-on-year basis comparative to last H1. Uh our EBITDA is 63.4% which is 10.3 points uh higher uh year-on-year basis. Um then PAT was 49.6 uh percent this

H1 it's 51.3% which is 1.7 points year-on-year based desire and 7.7 points change from H2 last year as I said despite tax rebate which we don't have anymore which we have already utilized. And also, despite of ease of cost which is be higher and that's not only competitively higher for us, but given the industry standard or any peer company, this is significant higher competitive to any industry standard. We never see such kind of, you know, margins in similar industry like cybersecurity or even IT. So that's because of generative AI solution that we build.

We invested time, our effort, our innovation, technology and resources, all of that in last couple of years. That's really giving us great fruit and also cyber scope from where Cindy belongs to Uh, she's a VP with the Cyberscope.

Uh, that's that's a great achievement by our team, tax, security and Cyberscope all across the group that we could achieve all of this. And um, yes, we achieved our target above than target. So thank you everyone for your support.

That's that's the main driving force for us to achieve all possible numbers. We are, as I said in the previous meetings and also during the annual general meeting in September. Remember that we are not company behind the numbers, but we are trying to create an impact in the cybersecurity industry so that our difference of that from peer companies speaks what exactly we do. So our action speaks louder than our words. That's what we believe in as well.

So yeah, please. So next slide please Cindy. So operating income if we compare with H1 23-24 was 50.2 million

Indian rupees and in 24-25 H1 was 131.6 million which is now 303.6 million which is 137% higher from last H1 year-on-year basis. That's a significant number that we could achieve Yes. EBITDA which we see in 23-24 was just

21 million. Then in H1 just post our listing six months, the capital we had, the resources we had, the visibility we had and all of fruits we had which is our ESOF solution that we build in five years that started giving us results and significantly we saw the you know gross margin, EBITDA margin growth and which we can see now which is 178% growth from the last H1 year-on-year basis which is Significantly higher. We are not just any usual IT or cybersecurity company globally which is growing on a 20 or 30% growth rate. We are growing at in 3 digit growth.

That's because of solution innovation that we build. What our backbone and the basic backbone is definitely our team and also the customer base which is uh significantly uh, you know, believing in our solution and uh trying to solve their uh larger vulnerability management problem with us.

Yes, please. So, if we compare the EBITA margin of couple of few years in H1FY24 which was 41.8% in H1FY25 was

52.5% which we see in this H1 is significantly higher, which is 63.4%. Uh, that's we never we all of us have never seen in any peer company, not even in any similar company in IT sector or a cybersecurity sector globally, we have never seen that and we not only managed to grow with the only the top line, but also the bottom line and also the margins, right and not just. Maintain that we overachieved by approximately 11 points from that, 9 points out of that. Sorry, yes, please. Yeah, if we see the profit growth which was 19.3 million INR 23-24 fiscal H1. And then

FY24-25H1 was 65.3 million. If we compare the previous year to year-on-year was 24% growth. If we see H1 growth of this year is 135% growth, which is 155.7 million INR that's our profit after Texas despite ESOP cost and no tax rebate. So that’s a significant achievement by our team's effort and innovation as said again.

So the growth margin which we can see is 38.4% in H124 and was 49.3% in H1FY25. We were growing, in a pace in last year the same during the same period. But we have not much of the cost because we were in a growth stage after the IPO. This year we had a larger cost globally, not just in India, but globally in all possible entities.

But despite that we not only maintained, we overachieve that and we increase the number. We don't have tax rebate, we have ESOP cost, we have cost which are going to be uh you know showing us results in the future quarters and uh in years, but still we have that cost but despite that. We achieve the profit margin which is 51.3% as we uh set a target for us. The target was lower, we overachieve uh our target. Yes, please. So if we compare

H1H2 of the last year with H1 this year, so if we see the total income was 131 million in H1 25 and in H2 was 190 million INR, this H1 is if we see. The together we achieved the numbers in just six months of the almost of the entire last year. So we have been we achieved what we set a target for and again I'm repeating the same thing.

EBITDA we have seen was 69 and 101 then this H1 is 192 INR which is 63.4% EBITDA margin which was 53.1 and last H1 & H2 FY 25. And now it's 63.4%. Then if we see the PAT, the H2 PAT was 43.6% because we had a lot of cost which were was supposed to give us a result which has given in this H1. But if we see we have increased our point which is from approximately 7 points 51.3%. The total PAT is 155,000,000 INR which we achieved in H1.

Yes, please. So, we set a target last year, remember upselling and cross selling to our existing customer base and increasing the revenue of per customer, right. So last year in H1 year-on-year basis we see we have grown 36 percent per customer revenue. Which was $1200 per customer. Now it's $1682 per customer. So that's a significant growth we are saying and that's the growth we are projecting for next five years as our bold 2030 plan.

So we are planning to grow 20% on a half yearly basis per customer revenue. That's what our internal goal here is. That's how we will achieve our 2030 plan. That's what we are trying to achieve here and this growth happened due to additional products we added like Socify. We added Socify in September. We have received great, you know, support from the industry and Socify has been adopted and accepted by all possible industry leaders and we are very hopeful that we would Socify , Cyberscope, ESOF, all of them will drive equal growth to the company as other products are in the past has drawn for us So, H1 if we see target versus achievement, we are very you know commitment we definitely try to deliver our commitment what we say we achieve that we deliver that and not only words speak about it, our action speaks about it. If we see our target for 10,000 clients by 2026 to become one of the largest vulnerability management company, the achievement of that is we now have a client base of

7500 clients. We are the fifth largest. Largest vulnerability management company in the world. Uh, that's what we are growing at the base of and we are very confident Uh we will become Uh one of the largest vulnerability management companies in top three by 2026 and achieve overachieve our 10,000 Uh. Customer base for sure.

We are already just a few a few miles away from our target and I believe we will achieve our target before the given timeline. Upselling to existing client was our target which was set in last.

Year was also spoken by me in the last annual general meeting. Uh, the revenue increased by 36% per client through upselling and cross selling. That's another achievement we have that we will see a significant growth in

H2.

By you know we are heavily investing our operational setup in Canada as we promised in the last quarter. So, we are in process of that. A lot of things are happened, a lot of things will show results in a couple of months which will.

Drive our customer success team and we will solve the customer problem in the larger way, not only by ESOP, but also Socify and Cyberscope that will increase our revenue percentage heavily. In H2 for sure, revenue and path target to maintain growth in FY26 as 25, that was the target. We overachieved the target. We delivered the entire income of the last year in just six months we overachieved that and target to, you know, comparative to the previous year was the growth target, but we've been overachieving that because of the support of team and innovation that we're building. And definitely support from all of you that we received and the blessings we received. Cyberscope explore new opportunities. Stack Security will explore the global opportunity for the recently acquired Cyberscope. That was the target when we all of us met in July or maybe in May of the earning call of Last year results. So we are very proud to say that we filed F1 Uh which is like DRHP in the US and we are in process to unlock the real value of Uh cyber scope by going public and new fundraise through IPO. We are in the last. Uh neck of that as we promised we hopefully we will achieve that as we promised and uh committed in uh past uh meetings. Uh we will we might we will go public uh by. This year itself in the US with Cyberscope, our subsidiary. So that's our target versus achievement. So, we what we said we achieve that what we saying that's what we are trying to achieve. So now way forward in the next slide we will all see what is our way forward plan for H2F. FY26 so that all of us are on same page. The one of the target is Socify. We are getting huge you know demand for Socify. If we all of us see our initial pricing was $2700 for a basic plan and discounted pricing which we increase because of the demand and Uh interest we receive which is now $4500.00. So the target is to have

10,000 clients for Socify to disrupt SOC 2 compliance market which stands for approximately $4 billion Uh leveraging AI. So that's what our goal is create as we go back to our Annual General Meeting, you know goal of

2030, the bold vision plan that we have. So Socify, Cyber Scope, ESOF, Cyber Sandia, VulMan, all of them would have a separate value, maybe larger than what we're tagged today stands as a current value. That's our 2030 board plan, cyberscope listing, fundraise unlock real value. That's our H2 FY26 plan. We will definitely. Achieved before the given time timeline, Middle East Uh revenue and partnership in the UA and US region to be focus Uh area for the growth for wholly on subsidiary that would be our way forward in H2 Uh target. Upselling focus on increasing per client revenue, Uh would be definitely our focus for H2 Uh grow 20% quarter on quarter Uh per client, which would definitely increase. The total revenue for the company, 10,000 clients, largest vulnerability management company by 2026. I can ensure you we will achieve before our timeline. We are just few steps and miles away for that. We are already you know ahead of our time of the given timeline inorganic growth. Yes, we are in process of exploring opportunities to acquire firms similar to past acquisitions such as Cyber Scope and

Cyber Sandia. That's our H2 plan and we are already in talks with multiple firms, not just in one region, but also regions like that we have never explored or we don't have presence physical or operating presence like Australia.

That's one of also the region that we are exploring. So this would be our edge to plan and I hopefully when we meet next time, we would put this on the target side and put the real what we achieve on the on the right side of the achievement. So that's the goal and really appreciate everyone's support and blessings we are getting.

And that really motivates us to, you know, work harder and work towards our vision of 2030, the bold vision of becoming the not only India's largest cybersecurity company, but world's one of largest cybersecurity company.

So we we are heading towards that and we are and we are sure that we will make it happen.

Yes, I'm happy to answer. If anybody has any questions, please. Siddhi, please, if you can.

Cindy Zekio 22:47

Yes, thank you so much. finportal investment 22:48

Oh, thank you.

Cindy Zekio 22:51

All right. So, the investors and shareholders, you may start asking your questions in the Q&A. Please make sure you first unmute yourself and then ask the question. Trishneet will be able to assist you. finportal investment 22:53

Yeah.

Cindy Zekio 23:15

Like you can start one by one, definitely. I think someone spoke a little bit while, if I'm not mistaken.

Trishneet Arora 23:29

Yeah, I'm happy to answer. So Ashish has a question about Cyberscope IPO. So, Ashish, we thanks for the question, but we filed confidential IPO. We are in process of that. We filed already with SEC. It's a confidential filing. I'm not able. To share any uh dates on that because we are unaware too. But uh as per the process and uh the given consultant, we would able to make it within this year. At the moment SEC is shut down because of the US government shutdown. Uh, but that's not impacting our timelines. We will already head of our timeline which is

December Uh 2025. We will definitely be able to make it, but I'm not in a position to speak about the size and all of that at the moment, but definitely as we. We are in a position of and we are allowed to do that. I would be the first person coming to all of you and speaking about it. We are as excited as you. Yes.

Yes, Nikhil, in the recent press release we mentioned about investment in $100 million in AI by 20-30. So there are ways. One of that is definitely through our revenue and the profit that's definitely. One of the major driving force for us to invest in AI and cyber platform through our earnings, but definitely we're exploring external funds if any right, you know set of person or You know entity which can add value more than money to us. We are happy to explore and my ultimate goal as I'm the largest shareholder, but my ultimate goal is to add value for my shareholders and we don't have any challenge on that and.

2030 our plan to in by 2030 our plans to invest $100 million in cyber and we are not only you know focusing or in the R&D on Socify or Cyberscope or ESOF we are of investing heavily on AI and in an R&D space and you will see a lot more products coming in a few quarters. We are not dependent on external fundings, but yeah, we are happy to explore if that comes across our way. Where revenue per client in spite of 7500. So having said that

7500 customers, they some of them added in last quarter, some of them added previous quarters. So they subscribe our platform for annual or multi year deal. So as their expiry date comes up, it adds right why the revenue per customer is low. We are making cybersecurity affordable for all those companies from large to small companies, right? So think of a way somebody invested billion of dollars to acquire similar set of number of customers and we are doing it just making it affordable as given example like Jio, right Jio made it affordable the telecom to every Indian citizen, that's how they capture the market. So we are capturing the market. We are very hungry to capture the market and solve the problem for the larger Uh audience, right? So and as we capture the market, we acquire the customer base, we will launch new solutions or upsell or cross sell our existing solution.

So that's the goal here. We are making cybersecurity affordable and available for everyone. So that's why our per client revenue is comparatively low to the cybersecurity industry standard, but we are not. You know, concerned about it, we are still able to maintain our profit and the margins, which is significantly higher from any peer company or industry and would be always higher from any peer or industry. Uh, similar company in the industry.

US tariff, we don't have any impact by having said that our customer base drives from our US subsidiary, the global customer base from 100 countries. So we don't have any impact of that because we don't have any resources either which. Adds a, you know, delivery value to us. We are. That's definitely the entirely drives by our Indian entity TAC Infos, which is a public entity. So we have a zero impact of US tariff.

So Varun Nagpal has a question. No doubt you are adding a large number of customer, but the business you get per customer is small as a business. But I think I addressed that by saying that we already added, we are trying to add large number of customer base so that we can increase the revenue per client in the near the future. Some of the people as I think raised the hand Cindy, if we can so you know unmute them and.

Uh, let them speak. Ashish. Let's start with Ashish. Hi Ashish, you you can unmute and please try to speak.

Ashish 30:03

Hello, am I audible to you, Trishneet?

Trishneet Arora 30:05

Yes, Ashish, you're very well audible.

Ashish 30:07

Hey.

Trishneet Arora 30:23

Mhm.

Ashish 30:23

12 months you are trying to do the 10,000 customer and the base plan is only $2700. So in Indian terms if I convert it's around 250 revenue only from Socify. So is it correct understanding? So next year will be blockbuster like 250 crores only from Soccify and then we have. ESOF is correct understanding.

Trishneet Arora 30:46

So Ashish, great question. $2700 was our base was a discounted price. The base price is $7200 for a for a small the launch plan which is the the basic plan of Socify which also has been increased to $4500 now. So our.

Ashish 30:46

Yes.

Yes.

Trishneet Arora 31:06

Idea is to if you see our Kasa solution is of Kasa appsec, we are bundling the solution because we are largely hungry to solve the customer's problem and acquire the customer at any cost and maintaining our gross margin and our growth. Uh target. So we are hungry to acquire 10,000 customer base in a year or so. It might take 12 months, it might take 24 months. Uh, it depends as we as we grow, we would have larger set of clarity in couple of quarters from down the line. Right now we have start. We all of the Socify customer are paid customer. We are not acquiring any customer which is a free customer, right. All of them paid and we acquired in last 1 and 1/2 months since we launched right and we are competing with one of the company I can name but we are competing with a company which has a revenue of $200 million and recently done a fundraise at a $4 billion valuation, right.

So that's what we are aiming for. So we are trying to disrupt the SOC 2 compliance platform market, right, which is $4 billion. So it might take 12 months, it might take 20-24 months, it might take eight months, right. So we are.

Trying to disrupt and acquire the customer base of Socify and which will help us to give and gives us leverage to upsell, cross sell our different solution and our existing solution are loving it. They are.

We are, that's what our aim is, right. If you see ESOF, ESOF stands for Enterprise Security in one framework. So that's what our ultimate goal is to bring customer on a single platform so they can solve all their cybersecurity needs in a single platform, right. So that's what we are trying to do and disrupt the market.

It.

Ashish 33:01

And this occupy is it like ESOF like where you will get money in advance for the plan. So we have a cash flow.

Trishneet Arora 33:10

Yeah, all of, yeah. So we have four plans. One of the out of four, the plans is a upfront money and one of the plan is, which is the largest plan, biggest plan is $27,000 per customer, which is pay after compliance.

For enterprise clients, because it has a larger value, which is $27,000 per client value. So that is after the compliance that might hit our, you know, cash flow for not maybe 180 days, but not larger than that.

Ashish 33:42

That's fine, that's fine. OK. And my second question is on standalone numbers. So I can see the standalone numbers go down this half year. So what is the reason for that?

Trishneet Arora 33:42

Yeah, yes.

The standalone number has not actually gone down. So we have focus on the large contract. If you seen we wanna contracts from the Government of India as well. So all we understand the government revenue comes slow and goes slow, right. So the number has not gone down which will be counted in the H2. So that's what we are aiming but.

You will end of the day you will see in consolidated you will see the growth in the standalone as well and also there is a there is a internal transaction. The previously the numbers internal agreement was before the listing was something else.

Now we have in Delaware Tax Security Inc is a Delaware US subsidiary, 100% subsidiary which is has Delaware has a lower tax rebate tax rate comparative to India, right. So that also saves our tax cost as well.

Ashish 34:53

OK. So is it like we have transferred some of the like ESOF what we were doing last year, who are we, are we doing that with our subsidies now that is the reason for consolidated gone up and standalone go down?

Trishneet Arora 34:54

It's just because of maybe just because of the,, Can you?

Ashish 35:08

But only.

Trishneet Arora 35:09

Can you repeat the question? I missed out I think.

Ashish 35:11

So my question is ESOF product what we are doing earlier I think it was on a standalone numbers and since we have played, we have incorporated lot of entities in UK, Canada etcetera. So do we have shift some business there and.

Trishneet Arora 35:28

Maybe.

Ashish 35:31

Numbers are coming into those entities.

Trishneet Arora 35:35

Yeah, that's that's one of the reason because in the US through the cash flow we are investing in Canada. We are also investing in UK and other entities, right. So internal ratio has been gone down.

Ashish 35:36

Thank.

Trishneet Arora 35:51

That's internal party transaction kind of thing, not has a direct impact. If you ask me if the numbers of the standalone business of India business has gone down, that's not has gone down. That's what the reality is, which we will see in the H2 numbers when we'll consolidate the two things.

Ashish 36:06

OK.

Trishneet Arora 36:11

Are the numbers have not gone down. I think the first question first the numbers of standalone has not gone down. It's just internal transaction thing I you can send you can send us a query my our CFO can definitely respond to.

Ashish 36:22