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Results · AI & Deep Tech

Fractal posts 92% profit jump in Q1 FY27

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Date
Company
Fractal Analytics
What it does
AI-led enterprise transformation company
Kind
Results
Founded
2000
Sector
AI & Deep Tech

What they do

Fractal Analytics provides AI-led transformation services and platforms for global enterprises

What happened

Q1 FY27 net profit rose 92% YoY to Rs 72.3 crore; revenue grew 20% to Rs 912.5 crore

Why it matters

Healthcare vertical surged 69% YoY, becoming the second-largest vertical for the company

The details

  • Fractal Analytics announced its Q1 FY27 results on 24 July 2026.
  • Consolidated net profit rose 92% year-on-year to Rs 72.3 crore from Rs 38 crore.
  • Revenue from operations grew 20% YoY to Rs 912.5 crore from Rs 760.5 crore.
  • Profit before tax jumped to Rs 97.4 crore from Rs 53 crore in the same quarter last year.
  • Sequentially, profit fell 38% from Rs 115.8 crore in Q4 FY26, while revenue rose ~3%.
  • Adjusted EBITDA margin improved to 17%, up 189 basis points YoY.
  • Gross margin stood at 46%, up 29 basis points YoY.
  • The company's Net Revenue Retention (NRR) was 117% and Net Promoter Score (NPS) was 77.

The bigger picture

  • Fractal went public in February 2026 via a Rs 2,834 crore IPO, providing exits to Apax Partners and TPG Capital.
  • The stock closed at Rs 866 on the results day, giving a market cap of Rs 14,892 crore ($1.56 billion).
  • Group CEO Srikanth Velamakanni noted clients are putting real transformation budgets behind AI, with deal sizes increasing.
  • Growing demand for data sovereignty and improvements in open-weight AI models are driving enterprises to seek partners that work across AI models and infrastructure.

About the business

  • Fractal helps global organizations transform critical business functions through AI-led transformation.
  • Its enterprise agentic AI platform powers operationalization of AI at scale.
  • Revenue comes from analytics and consulting services, licensing, and subscription fees from AI platforms like Cogentiq, fflyfish.ai, and Kalaido.ai.
  • Fractal.ai (core AI services and software) contributed Rs 894.2 crore in Q1 FY27; Fractal Alpha business contributed Rs 24 crore.
  • The Healthcare and Life Sciences (HLS) vertical grew 69% YoY, becoming the second-largest vertical.
  • Banking, Financial Services and Insurance (BFSI) grew 36% YoY; Consumer Packaged Goods and Retail (CPGR) grew 19% YoY and remained the largest vertical.
  • The Technology, Media and Telecommunications (TMT) vertical declined 22% YoY; excluding TMT, the business grew 35% YoY.
  • Fractal has launched Cogentiq E-Commerce, Vaidya.ai for BMC Health, and LLM Studio on NVIDIA's AI infrastructure.

The deal

Type
results

Founders

  • Srikanth Velamakanni, Group CEO and Executive Vice-Chairman

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