Results · Enterprise Software & IT

Fractal reports Q3 FY26 results with strong profit growth

By Startup Enthusiast · 5 March 2026

What they do

Fractal is an AI and analytics firm serving major global brands like Google and Apple

The company posted a net profit of ₹100.1 Cr in Q3 FY26, up 8.5% year over year

Revenue grew 21% to ₹854.4 Cr, driven by strong demand from US and European clients

Fractal reported ₹100.1 Cr net profit for Q3 FY26, marking an 8.5% year-over-year increase.
Total revenue from operations reached ₹854.4 Cr, reflecting a robust 21% growth compared to the previous year.
The company's gross margin stood at 47%, while adjusted EBITDA margin improved to 18%.
US markets contributed 69% of total revenue, showing significant expansion in the American segment.
European operations accounted for 19% of revenue, also demonstrating strong year-over-year growth.
APAC and other regions made up the remaining 12% of the revenue mix for the quarter.
Fractal now serves 6 customers generating over $20 million annually and 58 clients with over $1 million.
Employee benefit expenses rose to ₹596.1 Cr, representing approximately 70% of the operational revenue.

Strong performance in the US and Europe underscores the global demand for enterprise AI solutions.
Growth in high-value customer segments indicates successful penetration into large-scale enterprise accounts.

Fractal provides artificial intelligence and analytics services to large global enterprises.
Key clients include technology giants like Google, Microsoft, and Apple, as well as Nestle and Mars.
The company offers specialized products such as Cogentiq, Iqigai, Kalaido.ai, Vaidya.ai, and LLM Studio.
It has established a dedicated India business unit to meet rising domestic enterprise demand.
Revenue per billable full-time employee reached $85,000, indicating high operational efficiency.
The firm focuses on developing sovereign and large-scale AI models through the IndiaAI Mission.
ESOP expenses decreased slightly to ₹18.6 Cr, suggesting controlled equity compensation costs.
Other operating expenses increased by 24.1% to ₹111.2 Cr during the reporting period.
The company was founded in 2000 and has grown into a major player in the AI sector.

Fractal plans to double down on sovereign and large-scale AI model development.
The company aims to leverage the IndiaAI Mission mandate for future growth initiatives.