Synopsis
Fractal Analytics saw a sharp profit increase in the March quarter, fueled by strong demand for enterprise AI services. Revenue grew 17% year-on-year to Rs 886.3 crore, while net profit more than doubled to Rs 115 crore. For the full financial year, revenue rose 19% to Rs 3,300 crore and net profit increased 30% to Rs 287 crore.The company posted revenue from operations of Rs 886.3 crore in the March quarter, up 17% year-on-year. Net profit for the quarter more than doubled to Rs 115 crore from a year earlier. In Q3, Fractal's net profit stood at Rs 100 crore.
For the full financial year FY26, revenue grew 19% year-on-year to Rs 3,300 crore, while net profit rose 30% to Rs 287 crore. Excluding losses from associates, annual profit rose 43% to Rs 357 crore, the company said in its filings.
The company’s healthcare and life sciences vertical emerged as the fastest-growing segment, rising 82% year-on-year in Q4 and 66% in FY26. Banking, financial services, and insurance grew 42% in Q4 and 32% during the year, Fractal said in its filings.
Srikanth Velamakanni, group CEO, said: “We wrapped up FY2026 on a strong note, with robust revenue and profit growth while delivering AI-led transformation for our clients. AI is becoming more capable every day—AI that can plan, reason, and act through complex enterprise work—and this frontier intelligence is becoming much more affordable to deploy.”
Geographically, Europe grew 24% in Q4 and 34% in FY26, while its largest market, the US—which contributes over 67% to revenue—grew 20% during the year.
Fractal, in its investor presentation, added that it continued to invest heavily in research and development, with R&D spending at 6.4% of annual revenue. The company highlighted its enterprise AI platform Cogentiq, alongside products such as PiEvolve, Flyfish.ai, and Vaidya.ai, as part of its push to build reusable AI assets and agentic AI systems.
Fractal also said it now has 59 clients contributing over $1 million in annual revenue, up from 53 in FY25, reflecting increased enterprise adoption of AI-led transformation services.
The company’s net revenue retention, a key metric indicating increased spending from existing customers, stood at 112% in Q4 and 117% for FY26.
The company listed on Indian stock exchanges on February 16, with an initial public offering of Rs 2,834 crore. On Monday, Fractal’s shares were trading at Rs 1,065 on NSE, 0.64% lower than the previous trading session.
