This paper develops an effective encryption and steganography-based text extraction in IoT using deep learning method. Initially, the input text and cover images are separately pre-processed. DCT (discrete cosine transform) is utilized to transfer the image from spatial domain to frequency domain. Then, the original text is encrypted using new optimized equilibrium-based homomorphic encryption (OEHE) approach. Next, the extended wavelet convolutional transient search (EWCTS) optimizer with quotient multi-pixel value differencing (QMPVD) is developed to embed the secret text in cover images. Then, at receiver side, the reverse process for encryption and steganography is executed with secret key provided by the sender. Finally, the accurate text is extracted at receiver side using steganalysis process. The developed approach is executed in MATLAB software. The various evaluation metrics are used to authorize the effectiveness of suggested approach. Simulation outcomes proved that the suggested technique provides better outcomes than other existing approaches.