Results · AI & Deep Tech
Fractal posts 92% profit jump in Q1 FY27
By Startup Enthusiast ·
- 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
Other articles talking about it
More on Fractal Analytics
- Fractal Analytics' CCO Matthew Gennone resigns to pursue CEO role elsewhere25 September 2026 · People
- Fractal Analytics launches healthcare reasoning model in Mumbai14 August 2026 · Launch
- Fractal Analytics reports strong Q4 FY26 results11 May 2026 · Results · ₹115.8 Cr
- Fractal Analytics lists on Indian stock exchanges22 February 2026 · IPO · ₹900 per share
- Fractal Analytics files IPO, cuts size by 42%3 February 2026 · IPO · INR 2,833.9 Cr
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