TAC Infosec's profit after tax soared 137% to ₹8.1 Cr in Q1 FY27, driven by a 102% increase in revenue, highlighting strong demand for AI-led cybersecurity solutions.
New Delhi, India Jul 11, 2026 ALN: NSE Emerge-listed cybersecurity firm TAC Infosec has reported a remarkable profit after tax (PAT) of ₹8.1 Cr for the first quarter (Q1) of fiscal year 2026-27 (FY27), marking a significant increase of nearly 137% from ₹3.4 Cr in the same quarter last year. This growth also represents a 33.7% rise from the ₹6 Cr reported in the preceding quarter. The impressive financials underscore the company's strong position in an increasingly competitive cybersecurity market, where the demand for advanced security solutions continues to rise.
In addition to profit, the company's operating revenue surged 102% to ₹19.8 Cr, compared to ₹9.8 Cr in Q1 FY26. On a sequential basis, revenue jumped 27.3% from ₹15.5 Cr, showcasing a robust performance that reflects the company's effective strategies and the growing need for cybersecurity solutions among enterprises. This substantial revenue growth can be attributed to a variety of factors, including the increasing frequency of cyberattacks and the evolving threat landscape, which have prompted organizations to invest more heavily in cybersecurity measures.
However, expenses also saw a substantial increase, rising nearly 88% YoY to ₹11.1 Cr from ₹5.9 Cr in the previous year. This increase in expenses is indicative of the company's aggressive growth strategy, which often entails higher operational costs as it expands its service offerings and invests in new technologies. Despite these rising costs, TAC Infosec reported an EBITDA of ₹9.8 Cr, which is a 97.1% increase YoY, with EBITDA margins improving slightly to 48.8%. This growth in EBITDA signifies not only higher revenues but also effective management of costs relative to income, a critical factor for sustaining long-term profitability.
The startup attributed its impressive profitability to several factors, including higher revenue from its cybersecurity platforms, operating leverage, increased enterprise adoption, and a growing demand for AI-driven cybersecurity solutions. The ongoing AI boom has translated into stronger demand and deeper platform adoption, contributing to record performance in Q1 FY27. As businesses increasingly turn to artificial intelligence to enhance their cybersecurity measures, TAC Infosec's ability to integrate AI into its offerings has positioned it well to capitalize on this trend.
While TAC Infosec's core business thrived, its Web3 cybersecurity subsidiary, CyberScope, experienced a weaker performance due to volatility in global cryptocurrency markets. This volatility resulted in lower activity across certain Web3 projects, token launches, and smart-contract audit engagements. The cryptocurrency market has seen significant fluctuations in recent years, with regulatory changes and market sentiment heavily impacting investor behavior. As a result, many enterprises have become more cautious in their dealings with Web3 technologies, which has affected the performance of companies like CyberScope that operate in this niche.
Despite the challenges faced by CyberScope, TAC Infosec remains optimistic about the long-term potential of Web3 security. The company plans to expand CyberScope into areas such as institutional blockchain security, smart-contract assurance, and enterprise digital-asset risk management. This strategic pivot indicates the company's commitment to adapting to market demands and exploring new revenue streams, even in the face of short-term challenges. By focusing on institutional clients and enhancing its service offerings, TAC Infosec aims to solidify its position in the evolving Web3 landscape.
Trishneet Arora, founder and CEO of TAC Infosec, commented, “The AI boom strengthened our business and helped us deliver a record quarter. This performance is particularly significant because it was achieved despite lower comparative contributions from CyberScope due to volatility in the cryptocurrency market. The strength of our core business enabled the group to substantially outperform these short-term headwinds.” Arora's remarks highlight the resilience of TAC Infosec's core operations and the strategic importance of AI in driving growth. The CEO's confidence in the company's direction reflects a broader trend in the cybersecurity industry, where AI is increasingly seen as a critical tool for enhancing security protocols.
This quarter marks the first time TAC Infosec has reported quarterly numbers, having previously disclosed financials on a half-yearly basis. The company has voluntarily opted to submit its financial results quarterly, reflecting its growth trajectory and commitment to transparency. This shift towards more frequent financial reporting is often viewed positively by investors, as it provides more timely insights into a company's performance and operational health.
Looking ahead, TAC Infosec plans to continue investing in AI-led research and development, automation, global distribution, and the expansion of its ESOF product ecosystem. The company aims to increase enterprise adoption, expand recurring revenue streams, and integrate its cybersecurity, compliance, and Web3 security capabilities into a unified platform. This holistic approach to cybersecurity is becoming increasingly important as organizations seek comprehensive solutions that address multiple facets of their security needs.
As the cybersecurity landscape evolves, TAC Infosec's focus on innovation and adaptability will be crucial in maintaining its competitive edge. The firm’s commitment to integrating advanced technologies, such as AI, into its offerings positions it favorably to meet the growing demands of a diverse client base. Additionally, the emphasis on expanding its product ecosystem aligns with industry trends that favor integrated solutions over siloed services.
Shares of TAC Infosec closed the previous trading session down 1.03% at ₹417.1 on NSE Emerge. Market reactions to quarterly earnings can often be volatile, influenced by investor sentiment and broader market conditions. Despite the slight decline in share price, the overall financial performance reported by TAC Infosec suggests a robust business model and a strong foundation for future growth. Investors will likely be keen to monitor the company's ability to sustain this momentum in subsequent quarters, particularly in light of the challenges faced by its Web3 subsidiary and the broader economic environment.
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