Fractal Analytics Ltd (FRACTAL)
🎯 Key Takeaways
- Fractal Analytics is in a high-growth phase driven by AI-powered expansion in Healthcare and Life Sciences, with revenue and profitability accelerating. Management is executing a strategic pivot toward AI-led transformation, supported by strong client retention and margin expansion, positioning it as a scalable tech player in emerging digital markets.
- Revenue grew 3% QoQ to ₹913 in Q1FY27.
- ⚠️ 1) Overreliance on Healthcare and Life Sciences growth amid uncertain digital health spending. 2) Talent scarcity in AI and data science, highlighted
- Market Cap
- ₹12,765
- P/E Ratio
- 37.3
- P/B Ratio
- 4.01
- ROE
- 10.3%
- ROCE
- 11.4%
- Debt/Equity
- 0.09
- Promoter
- 17.0%
📖 The Story
Fractal Analytics is in a high-growth phase driven by AI-powered expansion in Healthcare and Life Sciences, with revenue and profitability accelerating. Management is executing a strategic pivot toward AI-led transformation, supported by strong client retention and margin expansion, positioning it as a scalable tech player in emerging digital markets.
📰 What's Happening
In Q1 FY27, Fractal reported 20% YoY revenue growth to ₹912.5 Cr and 92% YoY net income surge to ₹72.3 Cr, with adjusted EBITDA margin expanding by 189 bps to 17%. Management highlighted 117% net revenue retention and 77-point NPS as evidence of strong client stickiness. The company is investing in AI capabilities and expanding partnerships with hyperscalers, particularly in the Fractal.ai segment, while excluding TMT from growth expectations due to a 22% YoY decline.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 799 | 854 | 886 | 913 |
| Operating Profit | 63 | 93 | 144 | 103 |
| OPM % | 7.9% | 10.9% | 16.2% | 11.3% |
| Net Profit | 33 | 100 | 116 | 72 |
| EPS | ₹2.15 | ₹6.40 | ₹7.07 | ₹4.31 |
Revenue growth has accelerated sequentially and YoY, rising from ₹799 Cr in Sep 2025 to ₹913 Cr in Jun 2026, while operating profit margin improved from 7.9% to 11.3% over the same period. Net income growth outpaced revenue, indicating operating leverage, though OPM remains volatile. The trend reflects successful scaling of high-margin AI services, though margin expansion is uneven across quarters.
🔮 Management Outlook & What's Next
Management emphasized sustained demand from AI transformation budgets and plans to deepen client relationships and commercialize the Fractal.ai platform. They highlighted expansion of partnerships with hyperscalers and continued investment in AI capabilities as key growth levers, with no formal forward guidance beyond strategic pillars outlined in the AGM filing.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|
| Equity Capital | 3 | 17 | 14 |
| Reserves | 1,750 | 3,168 | 1,958 |
| Borrowings | 429 | 286 | 423 |
| Total Liabilities | 2,858 | 4,407 | 2,535 |
| Fixed Assets | 192 | 801 | 400 |
| Investments | 994 | 1,238 | 1,060 |
| Total Assets | 2,858 | 4,407 | 2,535 |
The balance sheet shows a strong equity base of ₹17 Cr (up from ₹3 Cr YoY) and reserves growing to ₹3,168 Cr, indicating capital accumulation. Borrowings remain low at ₹286 Cr, and total assets have grown to ₹4,407 Cr, suggesting disciplined capital deployment. The company is reinvesting profits rather than returning capital, aligning with growth priorities.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 | Mar 2026 |
|---|---|---|
| Operating | +397 | +409 |
| Investing | -181 | -1,422 |
| Financing | -22 | +938 |
| Net Cash Flow | +194 | -76 |
👥 Shareholding Pattern
| Category | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|
| Promoters | 17.0% | 17.0% | 17.0% |
| FII | 40.6% | 40.5% | 40.9% |
| DII | 12.8% | 13.3% | 12.3% |
| Public | 11.7% | 11.1% | 11.6% |
| # Shareholders | 1,35,778 | 1,01,465 | 87,200 |
FII holding has slightly declined from 40.62% to 40.48% over three quarters, while DII increased from 12.83% to 13.25%, indicating institutional confidence. Promoter holding remains stable at 16.97%, and the rising number of shareholders (87,200) suggests broadening retail interest. No significant dilution or pledging signals are evident.
⚖️ Peer Comparison — IT - Software
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| TCS | 7.50 L Cr | 15.1 | 63.2% | — | 0.00 |
| INFY | 4.07 L Cr | 13.5 | 44.9% | — | 0.00 |
| HCLTECH | 3.40 L Cr | 19.5 | 31.6% | — | 0.00 |
| WIPRO | 1.60 L Cr | 12.8 | 18.1% | — | 0.19 |
| TECHM | 1.51 L Cr | 26.6 | 24.8% | — | 0.00 |
| LTM | 1.21 L Cr | 23.2 | 30.5% | — | 0.00 |
| OFSS | 94,385 | 27.6 | 60.3% | — | 0.00 |
| PERSISTENT | 83,939 | 43.2 | 32.7% | — | 0.00 |
| COFORGE | 78,489 | 36.0 | 25.6% | — | 0.04 |
| MPHASIS | 42,582 | 22.3 | 22.3% | — | 0.17 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Overreliance on Healthcare and Life Sciences growth amid uncertain digital health spending. 2) Talent scarcity in AI and data science, highlighted in AGM disclosures. 3) Geographic concentration in key markets, exposing the company to regional economic or regulatory shifts. 4) Volatility in TMT segment performance, which could impact overall growth trajectory if not stabilized.
📋 Recent Filings
- 🔴 Announcement2026-09-29Fractal Analytics announced its schedule for upcoming analyst and institutional investor meetings, including an October 9, 2026, in-person investment …
- 🔴 Announcement2026-09-25Fractal Analytics announced an investor conference call on November 4, 2026, to discuss unaudited financial results for the quarter and half-year endi…
- 🟡 Board Meeting2026-09-25Fractal Analytics announced a board meeting on November 3, 2026, to approve unaudited standalone and consolidated financial results for the quarter an…
- 🔴 Corporate Action2026-09-24Fractal Analytics announced the allotment of 369,526 equity shares of Re. 1 each to eligible employees under three stock option plans, increasing the …
- 🔴 Announcement2026-09-23Fractal Analytics announced the resignation of Chief Commercial Officer and CEO of Cogentiq, Matthew Gennone, effective October 2, 2026, to pursue a C…
- 🟡 voting results2026-09-16Fractal Analytics held its 26th AGM on September 16, 2026 via video conference, approving the FY2025-26 audited financial statements, reappointing Non…
- 🟡 Board Meeting2026-09-16Fractal Analytics held its 26th AGM on September 16, 2026 via video conferencing, approving the FY2025-26 audited financial statements, reappointing N…
- 🔴 Corporate Action2026-09-14Fractal Analytics announced the allotment of 272,775 equity shares of Re. 1 each under three employee stock option plans on September 14, 2026, increa…
- 🔴 Announcement2026-09-10Fractal Analytics announced its schedule for upcoming analyst and institutional investor meetings, including a non-deal roadshow in Mumbai on Septembe…
- 🔴 Announcement2026-09-09Fractal Analytics announced its schedule for three upcoming Non-Deal Roadshow events in Mumbai on September 15, 17, and 18, 2026, targeting analysts a…
🧠 Analyst's Read
Fractal is executing a coherent AI-led growth strategy with strong margin and retention metrics, but investors should monitor execution consistency in non-healthcare verticals and talent-related risks as it scales. The reinvestment of profits and lack of dividends underscore a long-term build phase.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-29.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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