Stock Report

Fractal Analytics Reports 20% Revenue Growth and 92% Surge in Net Income for Q1 FY27

Posted On : 2026-07-24 11:03:45( TIMEZONE : IST )

Artificial intelligence and enterprise analytics company Fractal Analytics Limited (BSE: 544700, NSE: FRACTAL; CIN: L72400MH2000PLC125369) has published its unaudited consolidated financial results for the first quarter ended June 30, 2026 (Q1 FY27).

The company reported consolidated revenue from operations of ₹912.5 crore (₹9,125 million), reflecting a 20.0% year-on-year (YoY) increase compared to ₹760.5 crore in Q1 FY26. Consolidated Profit After Tax (PAT) surged by 91.8% YoY to ₹72.3 crore (₹723 million), driven by expansion across key industry verticals and margin improvements.

Executive Financial Highlights

Revenue from Operations: Stood at ₹9,125 million (₹912.5 crore), up 20.0% YoY from ₹7,605 million in Q1 FY26 and 3.0% sequentially over ₹8,863 million in Q4 FY26.

Total Income: Aggregated ₹9,321 million (₹932.1 crore), including ₹196 million in other income, compared to ₹7,749 million in Q1 FY26.

Profit Before Tax (PBT): Climbed 83.8% YoY to ₹974 million (₹97.4 crore), compared to ₹530 million in Q1 FY26. PBT accounts for an exceptional net gain of ₹69 million and a share of loss from an associate of ₹234 million.

Profit After Tax (PAT): Rose to ₹723 million (₹72.3 crore), compared to ₹377 million in Q1 FY26. Net profit attributable to owners of the parent stood at ₹742 million.

Total Comprehensive Income: Totaled ₹862 million (₹86.2 crore), supported by ₹139 million in other comprehensive income.

Margins: Gross margin expanded by 29 bps YoY to 46%. Adjusted EBITDA grew 35% YoY, with Adjusted EBITDA margin expanding 189 bps YoY to 17%.

Earnings Per Share (EPS): Basic EPS for the quarter reached ₹4.31 per share (face value ₹1/- each), up from ₹2.41 in Q1 FY26. Diluted EPS stood at ₹4.09.

Industry Vertical Performance & Client Metrics

Top-line performance was led by strong expansion in life sciences and financial services:

Healthcare and Life Sciences (HLS): Registered 69% YoY growth, becoming the second-largest vertical in Fractal's portfolio.

Banking, Financial Services and Insurance (BFSI): Grew 36% YoY during the quarter.

Consumer Packaged Goods and Retail (CPGR): Fractal's largest industry vertical expanded 19% YoY.

Technology, Media & Telecom (TMT): Contracted 22% YoY.

Client Engagement: Net Revenue Retention (NRR) stood at 117% for the quarter, while the company recorded a Net Promoter Score (NPS) of 77.

Consolidated Operating Expenditure

Total consolidated expenses for Q1 FY27 reached ₹8,182 million (₹818.2 crore), compared to ₹6,996 million in Q1 FY26 and ₹7,556 million in Q4 FY26.

Key expenditure line items included:

Employee Benefits Expense: Formed the largest operational cost component at ₹6,319 million, compared to ₹5,541 million in Q1 FY26.

Other Expenses: Stood at ₹1,265 million, compared to ₹948 million in Q1 FY26.

Depreciation & Amortization Expense: Totaled ₹398 million, compared to ₹300 million in Q1 FY26.

Employee Stock Option (ESOP) Expense: Stood at ₹112 million, compared to ₹89 million in Q1 FY26.

Finance Costs: Accounted for ₹88 million, down from ₹118 million in Q1 FY26.

Segment Revenue & Results

Fractal presents its operations under two distinct business segments:

1. Fractal.ai

Segment Revenue: ₹8,942 million in Q1 FY27, up 20.6% YoY from ₹7,415 million in Q1 FY26.

Segment Result: ₹1,577 million in Q1 FY27, compared to ₹1,106 million in Q1 FY26.

2. Fractal Alpha

Segment Revenue: ₹240 million in Q1 FY27, up 19.4% YoY from ₹201 million in Q1 FY26.

Segment Result: Loss of ₹148 million, compared to a loss of ₹43 million in Q1 FY26.

Intersegment eliminations accounted for ₹57 million in revenue during the quarter.

Asset & Liability Profile

As of June 30, 2026, total segment assets stood at ₹39,589 million, compared to ₹44,071 million as of March 31, 2026. Total liabilities were reduced to ₹6,753 million, down from ₹12,208 million as of March 31, 2026. Paid-up equity share capital stood at ₹172 million (face value ₹1/- per share), with other equity reported at ₹31,677 million.

Commenting on the performance, Srikanth Velamakanni, Group CEO and Executive Vice Chairman said: "Enterprises are putting real transformation budgets behind AI now and we're seeing it directly in the size of the deals coming to us. TMT was the drag on our headline growth this quarter. Excluding TMT, our business grew 35% year on year, which is a better read on the underlying demand we're seeing.

As data sovereignty becomes a bigger priority for governments and enterprises, and as open-weight models keep improving, clients need a partner who can work across models and infrastructure. We have invested heavily in our people, our research, and our own intellectual property to be that partner."

Shares of Fractal Analytics Limited was last trading in BSE at Rs. 862.15 as compared to the previous close of Rs. 893.95. The total number of shares traded during the day was 10184 in over 904 trades.

The stock hit an intraday high of Rs. 890.00 and intraday low of 859.80. The net turnover during the day was Rs. 8908368.00.