TAC Infosec Limited

Sector n/a · NSE

₹500.75−₹8.25 (−1.62%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

The 60-second version of TAC Infosec Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

How does it make money?

Turns over ₹56 Cr a year. Of every ₹100 of sales, about ₹40 reaches shareholders as profit, with ₹59 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 31.3%. Returns that high normally get competed away; when they persist, something is protecting them. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +460% while net margin moved -21% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+460%

Margin effect-21%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

72/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

18/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

31.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 54.7% to 58.8% over 3 years.
Cash generation is improving
Free cash flow is up 96% over 3 years.
High return on capital employed
ROCE of 31.3% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 66.0% to 27.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 65.7% to 31.3% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 159% over 3 years, from ₹0 Cr to ₹1 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 101% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 31.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 54.7% to 58.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 66.0% to 27.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 58% a year✓ 77.6% CAGR
Latest reported year was 86.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 57%✓ 58.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 28%✓ 31.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 9 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 6 neutral · 0 weak

Market Cap

₹1,053 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

27.0%

Strong

Strong capital efficiency

ROCE

31.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.12x

Moderate

Moderate leverage

Revenue Growth (YoY)

86.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

56.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

85.4%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

40.2%

Good

Strong bottom-line conversion

Current Ratio

10.44

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

424.2 / 439.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

26.9

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹10 Cr	₹12 Cr	₹30 Cr	₹56 Cr	+77.6%
EBITDA	₹5 Cr	₹7 Cr	₹17 Cr	₹33 Cr	+81.9%
EBITDA Margin	54.7%	57.1%	57.5%	58.8%	—
PAT (Net Profit)	₹5 Cr	₹6 Cr	₹14 Cr	₹23 Cr	+64.3%
EPS	₹4.84	₹6.04	₹6.81	—	—
ROE	66.0%	44.8%	26.1%	27.0%	—
ROCE	65.7%	45.6%	28.6%	31.3%	—
Total Debt	₹0 Cr	₹2 Cr	₹2 Cr	₹1 Cr	+37.4%
Free Cash Flow	₹2 Cr	-₹3 Cr	₹13 Cr	₹3 Cr	+25.1%

🟢 Revenue has grown at 77.6% a year over 3 years.

🟢 EBITDA has grown at 81.9% a year over 3 years.

🟢 EBITDA Margin has risen from 54.7% to 58.8% over 3 years (+4.1 pts).

🟢 PAT (Net Profit) has grown at 64.3% a year over 3 years.

🔴 ROE has fallen from 66.0% to 27.0% over 3 years (-39.0 pts).

🔴 ROCE has fallen from 65.7% to 31.3% over 3 years (-34.5 pts).

🔴 Total Debt has grown at 37.4% a year over 3 years.

🟢 Free Cash Flow has grown at 25.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹96 Cr

Total Liabilities

₹8 Cr

Cash & Equivalents

₹23 Cr

Operating Cash Flow

₹10 Cr

Capex

-₹6 Cr

Recent News

4 mixed2 general

TAC Infosec Lower Circuit Streak: Day 2 Price and Data

Univest, 09 Oct

Solid Earnings May Not Tell The Whole Story For TAC Infosec (NSE:TAC)

Simply Wall Street, 22 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

TAC Infosec Shares Slump 16% Amid Global Cybersecurity Selloff

Inc42, 25 FebPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

TAC Infosec to host analyst and investor meeting on July 15

scanx.trade, 15 JulAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

TAC Infosec Lower Circuit Today: Price, Data and Peers

Univest, 08 Oct

Cybersecurity Firm TAC InfoSec Targets Rs 100 Cr Revenue in FY27 After Strong Q1 Earnings

HDFC Sky, 17 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation

WeakRisk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑