1. At a Glance
TAC Infosec isn’t just riding the cybersecurity wave — it’s trying to be the wave. With over 6,000 clients across 100+ countries, zero debt, 160% topline growth, and a ROE that makes your bank savings look criminal, this Pune-based “Vulnerability Management” specialist might be the flashiest SME IPO we’ve seen in a while.
2. Introduction with Hook
Imagine if Sherlock Holmes got into software. Instead of chasing murderers, he hunts down bugs in your firewall. That’s TAC Infosec.
- 160% YoY revenue growth in FY25
- 134% YoY PAT growth
- 6,000+ clients, including HSBC and Asana
- Acquired Web3 security firm CyberScope
TAC isn’t just securing endpoints — it’s securing your FOMO.
3. Business Model (WTF Do They Even Do?)
TAC Infosec makes money by preventing you from getting hacked. Plain and not-so-simple.
- Products: VULMAN (Vulnerability Management), ESOF, Risk Management Suite
- Services: Penetration Testing, Risk-based Vulnerability Assessment, Compliance Scans
- Model: SaaS — Think “bug bounty as a service”
- Clients: 6,000+ including Fortune 500 companies
- Geography: India + 100 countries + new UK subsidiary
TAC’s pitch? “We don’t just tell you you’re vulnerable. We quantify how much it’ll cost you if you don’t fix it.”
4. Financials Overview
| FY | Revenue (Cr) | EBITDA (Cr) | Net Profit (Cr) | OPM (%) | EPS (₹) |
|---|---|---|---|---|---|
| FY20 | 4 | 1 | 0 | 15% | 9.56 |
| FY21 | 5 | 1 | 1 | 16% | 13.56 |
| FY22 | 5 | 1 | 1 | 20% | 13.56 |
| FY23 | 10 | 5 | 5 | 54% | 114.00 |
| FY24 | 12 | 7 | 6 | 56% | 8.27 |
| FY25 | 23 | 12 | 13 | 53% | 12.49 |
Key Observations:
- Profits growing faster than cybercrime itself
- EPS growth has normalized post-stock split
- Still no dividends — founder waives salary, not profits
5. Valuation
Current Price: ₹956
Book Value: ₹51.5
P/E: 76.6x
CMP/BV: 18.6x
Valuation Range (Fair Value Est.):
- DCF Method (aggressive growth): ₹800–950
- EV/EBITDA method: ₹675–825
- Peer Median (Wipro, TCS, Persistent): ₹600–700
TAC trades above even tech majors. Is it the Indian CrowdStrike or just SME momentum mania?
6. What’s Cooking – News, Triggers, Drama
- CyberScope Acquisition – 60% stake in Web3 cyber audit startup
- UK Expansion – New entity “VULMAN Ltd” to tap European clients
- CEO Salary Waiver – FY26 pay dropped, bonuses tied to targets
- Government Contracts – ₹2.3 Cr cybersecurity deal from Agri Dept
- Client Blitz – Added 3,000+ clients in FY25, including HSBC, Asana, NSE brokers
Upcoming Triggers:
- IPO lock-in period expiry
- Scaling SaaS revenue abroad
- Analyst coverage from HNI circles
- More gov contracts, esp. in digital India stack
7. Balance Sheet
| Metric | FY25 |
|---|---|
| Equity Capital | ₹10 Cr |
| Reserves | ₹43 Cr |
| Borrowings | ₹2 Cr |
| Total Assets | ₹66 Cr |
| Investments | ₹12 Cr |
| Net Debt | Zero |
| Tangible Assets | ₹6 Cr |
Key Takeaways
- Super-light asset model
- Healthy reserve buildup
- Practically debt-free
- Investment in strategic assets, not white elephants
8. Cash Flow – Sab Number Game Hai
| FY | CFO (Cr) | CFI (Cr) | CFF (Cr) | Net Flow |
|---|---|---|---|---|
| FY23 | ₹2 | ₹0 | ₹1 | ₹1 |
| FY24 | ₹-2 | ₹-1 | ₹25 | ₹0 |
| FY25 | ₹10 | ₹-35 | ₹14 | ₹0.10 |
Key Observations:
- Burn in investing (CyberScope, infra)
- Strong operating cash, despite R&D focus
- Financing includes fresh equity capital
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 39% |
| ROE | 38.5% |
| OPM | 53% |
| Debtor Days | 211 |
| Working Cap Days | 75 |
| D/E | 0.02 |
Summary:
- Mouth-watering profitability
- Debtor days still sticky – SME billing cycles drag
- Return metrics suggest real efficiency, not optical illusion
10. P&L Breakdown – Show Me the Money
| Line Item | FY25 |
|---|---|
| Revenue | ₹23 Cr |
| COGS + OpEx | ₹11 Cr |
| EBITDA | ₹12 Cr |
| Other Income | ₹2 Cr |
| PBT | ₹14 Cr |
| PAT | ₹13 Cr |
Clear focus on lean ops, big margins — very un-Indian IT style.
11. Peer Comparison
| Company | Rev (Cr) | PAT (Cr) | P/E | ROE |
|---|---|---|---|---|
| TCS | 2.6L | 49K | 24x | 52% |
| Infosys | 1.6L | 26K | 25x | 29% |
| Persistent | 11.9K | 1.3K | 64x | 24% |
| TAC Infosec | 23 | 13 | 76x | 38.5% |
Yes, TAC has phenomenal margins and growth. But it’s trading like it already IS TCS.
12. Miscellaneous – Shareholding, Promoters
| Shareholder Type | % Holding |
|---|---|
| Promoters | 56.94% |
| FIIs | 3.57% |
| DIIs | 0.00% |
| Public | 39.49% |
| No. of Shareholders | 1,775 |
- FII stake down from 9.8% → 3.5%
- No DII entry yet
- High public shareholding = potential volatility
- No dividend yet — reinvests in biz
13. EduInvesting Verdict™
TAC Infosec is a fascinating cocktail of:
- Explosive growth
- Solid tech backend
- Cybersecurity narrative
- Sexy margins
- Sky-high valuations
…but also…
- Low liquidity
- SME volatility
- Sticky debtors
- No dividend trail
- Valuation that’s 3x bigger than Persistent, per unit profit
Verdict (No Buy/Sell):
TAC Infosec is either going to be India’s next big tech IPO… or a cautionary tale in SME overvaluation. The fundamentals are strong, the narrative even stronger — but price has already baked in a whole Web3 future.
Metadata
– Written by EduInvesting Analyst Team | 13 July 2025
– Tags: Cybersecurity, SME IPO, TAC Infosec, SaaS Stocks, India Tech, Growth Stocks, Fintech
