eMudhra Q2 Income Surges 19.6% Despite Security Glitch
eMudhra reports a 19.6% jump in Q2 income to Rs 209.3 crore, though a TLS certificate security flaw impacted 1% of its revenue.
Digital trust and cybersecurity firm eMudhra Ltd has posted a strong financial performance for the second quarter ended September 30, 2026, reporting a 19.6 per cent year-on-year increase in total income. The company's earnings reached Rs 209.3 crore, a significant jump from the Rs 174.9 crore recorded during the same period last year. This growth comes despite a security incident within its TLS certificate business that the company admits impacted roughly 1 per cent of its revenue.
Strong Financial Growth Across the Board
The company's profitability saw a healthy uptick across multiple metrics during the quarter. The EBITDA rose by 21.6 per cent to Rs 51.3 crore, maintaining a margin of 24.5 per cent. More impressively, the net profit climbed by 26.3 per cent, reaching Rs 33.4 crore.
Looking at the broader picture for the first half of the financial year, eMudhra's trajectory remains upward:
- Total Income: Rs 401.8 crore (up 23.4 per cent).
- Net Profit: Rs 65.4 crore (up 27.1 per cent).
Enterprise Solutions Drive Expansion
A major catalyst for this growth has been the Enterprise Solutions business. This segment witnessed a massive 36 per cent increase in revenue and now constitutes a dominant 66 per cent of eMudhra's total income.
The company is also aggressively expanding its global footprint. During the second quarter, eMudhra successfully acquired its first set of customers in Nigeria and Kazakhstan. Furthermore, by leveraging cross-selling opportunities with Cryptas, the firm secured three major enterprise clients across Europe.
The Security Incident: What Happened?
While the numbers are positive, eMudhra is currently recalibrating its business focus following a security flaw in its global website security operations. The issue centered on the generation of cryptographic keys for eight intermediate Certificate Authorities (CAs) within its Transport Layer Security (TLS) business.
A flaw in the key-generation process led to the creation of "weak keys." This vulnerability was uncovered in October 2026 by an independent security researcher, who discovered that private keys could be recovered from their corresponding public keys. Since private keys are essential for certificate authorities to verify website identities and ensure secure browser connections, this discovery triggered immediate industry concern.
Impact and Response
The incident affected eight certificates in total—six TLS intermediate certificates and two code-signing certificates. However, eMudhra has clarified several critical points to reassure stakeholders:
- No Data Breach: The company maintains that its core infrastructure was not compromised and no data breach occurred.
- No End-User Impact: None of the affected intermediate authorities had issued any end-entity certificates.
- Industry Action: Tech giants including Microsoft, Google, Apple, and Mozilla took steps to block or distrust the compromised certificates.
"We revoked the affected intermediary certificates. There were no end-entity certificates issued out of the affected intermediary CA's. Our infrastructure was not compromised, no data was breached, and all physical and logical security controls remain intact," stated V Srinivasan, Executive Chairman of eMudhra.
Moving Forward
To ensure transparency and rigorous auditing, eMudhra has appointed KPMG as an independent external reviewer to examine the incident. The company is currently working with its clients to provide replacement certificates.
Reflecting on the future of this specific business line, V Srinivasan noted that the return on investment (RoI) and overall business potential for this segment have been considerably reduced when compared to the company's total cumulative revenue base.