Kratikal Tech Ltd.: overview

Kratikal Tech Ltd (BSE SME: 544811 | Mcap: ₹178 Cr) is a cybersecurity company that protects organisations across people, process and technology. It defends them against phishing, deepfake and email-impersonation attacks aimed at employees, hackers exploiting weak spots in apps, networks and cloud, and the compliance gaps that regulators penalise. Its Threatcop brand sells AI-enabled software that tests and trains employees against these attacks, and its Kratikal brand is a CERT-In empanelled auditor offering security testing (VAPT), compliance and virtual CISO services.

In its first half-year results since its July 2026 listing, revenue rose 65% YoY to ₹22.3 Cr and EBITDA rose 129% to ₹4.1 Cr, with margin up 500 bps to 18.3%. PAT rose 130% to ₹2.8 Cr. Bookings doubled to ₹27.8 Cr, and the order book of ₹42.6 Cr is almost twice H1 revenue.

Two Engines, One Platform

Kratikal has grown revenue 2.8x in two years, from ₹13.0 Cr in FY24 to ₹36.7 Cr in FY26, at a 24.5% EBITDA margin and a 35% ROE, with no debt. Both engines grew more than 2.5x: Threatcop 3.1x to ₹19.7 Cr and Kratikal services 2.6x to ₹17.0 Cr. Products made up 54% of FY26 revenue, and 72% of H1 FY27 revenue was recurring. Kratikal served 677 clients in FY26, up 60% since FY24, with clients in 24 countries outside India.

1. Customers Buying More, and Buying Bigger

Kratikal usually wins a client with one product, then sells it more. In H1 FY27, cross-sell bookings grew 3.3x, and existing customers booked ₹16.8 Cr, 60% of the total. Clients are also spending more each time: revenue per client rose 1.8x to ₹5.1 lakh, and Threatcop's average order rose 34% to ₹6.37 lakh. One e-commerce marketplace that started with a ₹7.6 lakh training order in FY24 placed ₹1.40 Cr of orders the following year.

2. Built in India, Sold Abroad

Kratikal keeps delivery and R&D in India, while US deals for the same work are 8–10x larger than in India. Exports rose from 13% of revenue in FY25 to 30% in FY26, and were 25% in H1 FY27. International bookings grew 3.1x to ₹8.2 Cr in H1 FY27, 30% of the total, up from 19%. Middle East bookings tripled to ₹5.1 Cr across government, healthcare and logistics clients, including a ₹2.48 Cr government OT security contract, alongside work with large UAE banks. In the US, orders rose from 3 to 15, including a three-year ₹3.7 Cr government contract. Kratikal has set up Kratikal AI Inc. in Delaware with a US business team for its AutoSecT pentest platform, and ₹23.1 Cr of its ₹39.7 Cr IPO is earmarked for the US and UAE subsidiaries.

3. Regulation Is Making Security Spend Mandatory

Most breaches start with people or unpatched systems: 95% involve human error, and 31% began with an exploited vulnerability, now the top way in. Threatcop addresses the first, and VAPT and AutoSecT the second. Regulators increasingly require this spend. RBI asks banks and larger NBFCs for vulnerability assessments every six months, SEBI requires audits by CERT-In empanelled auditors (Kratikal has been one for ~7 years), and the DPDP Act applies in full from May 2027, with penalties of up to ₹250 Cr. India's cybersecurity spend is expected to grow 14.5% a year to US$16.9 bn by 2030. Kratikal counts 50+ Forbes Global 2000 companies as clients, 23 of which ordered in H1, and has won critical-infrastructure work in power and energy. At one Indian power utility, Threatcop cut simulated credential submissions by 55% in four months.

Operating Leverage, Even After Growth Spend

Employee costs grew 40%, slower than revenue, and fell to 40% of revenue from 48% a year ago. The reported 18.3% EBITDA margin is after ₹0.97 Cr of growth spend on the new US and Dubai entities, sales hires and entry into Nepal; before it, the margin was 22.7%. The business is also seasonal: H2 delivered ~63% of FY26 revenue and ~80% of its EBITDA. Operating cash flow was ₹4.0 Cr in H1, against ₹0.9 Cr for all of FY26.

Leadership and the Road Ahead

Founded in 2013, Kratikal is led by Chairman, MD & CEO Pavan Kumar and Co-Founder & CTO Paratosh Kumar, both CISA-certified MNNIT Allahabad engineers and co-authors of three cybersecurity books. Pavan invented real-time DMARC, with two patent applications pending, and Paratosh is the architect of AutoSecT and AutoGRC. COO Dip Jung Thapa, a former Paytm product manager, runs sales, operations and the UAE arm. Promoters hold 53.4%. Management's priorities are to launch two AI products, AutoGRC for automated governance, risk and compliance and a Threatcop secure email gateway, backed by ₹9.2 Cr of IPO proceeds for 49 hires; to win large accounts worth ~₹1 Cr each; and to expand partnerships with global system integrators. It aims to become predominantly product-led within two years.

Valuation

At a market capitalisation of around ₹178 Cr (₹159.95 a share, ~18% above the ₹135 IPO price) and an enterprise value of ~₹140 Cr, after ~₹38 Cr of cash and investments that is mostly unspent IPO money, Kratikal trades at ~23x TTM earnings and ~12x TTM EBITDA. That is a ~37% discount to the median TTM P/E of listed cybersecurity peers (~36x, range ~29–63x), whose EV/EBITDA ranges from ~29x to ~66x. Its P/B of ~2.9x is below the peer median of ~6.5x, while its FY26 ROE of ~35% is more than twice the peer median of ~15%, though returns will be diluted until the IPO cash is put to work.

Kratikal enters H2, historically its stronger half, with a ₹42.6 Cr order book and a growing international pipeline. Converting that order book, scaling the US and Middle East businesses will be key to a re-rating.

Earnings Presentation H1FY27 Results If you are interested in a Management Meeting, Pls click here Disclaimer - Informational only. Not investment advice.
GoIndia Advisors LLP | SEBI Registered Research Analyst | Reg. No. INH000020040 | BSE Enlistment No. - 6518