Fractal Analytics reported a 139% YoY jump in consolidated net income to Rs 79.2 Cr in the second quarter of FY27, compared with Rs 33.2 crore a year earlier. Revenue from operations rose 20% to Rs 956.5 crore, marking the company’s first quarter with revenue above the $100 million mark, according to its Q2 investor presentation.
The company’s results for the quarter ended September 30, 2026, were approved by its board on November 3. Revenue also increased 4.8% sequentially from Rs 912.5 crore in Q1 FY27, while net income rose 9.5% from Rs 72.3 crore.
Total income stood at Rs 985.3 crore, including other income of Rs 28.8 crore. Total expenses increased to Rs 858.9 crore from Rs 746.6 crore in the year-ago quarter.
Adjusted EBITDA Margin Expands Despite Gross Margin Pressure
Fractal’s adjusted EBITDA increased 30% YoY to Rs 154.9 crore in Q2 FY27. Its adjusted EBITDA margin improved 123 basis points to 16.2%, which the company attributed to operating leverage.
However, gross margin declined 225 basis points to 44% from 46.2% a year earlier. Fractal said the near-term pressure reflected investments in AI engineering talent.
The quarter’s reported net income also included a loss of ₹23.2 crore from an associate. Excluding this impact, net income was ₹102.4 crore, as per the company’s investor presentation.
Healthcare and BFSI Lead Industry Growth
Healthcare and life sciences (HLS) was Fractal’s fastest-growing major industry vertical, with revenue rising 79% YoY. Banking, financial services and insurance (BFSI) grew 30%, while consumer packaged goods and retail (CPGR), its largest vertical, increased 11%.
Technology, media and telecom (TMT) revenue declined 18% during the quarter.
Geographically, the Americas contributed 67.3% of revenue, followed by Europe at 21.5% and Asia-Pacific and other regions at 11.2%. Revenue from the Americas grew 22% YoY, Europe increased 20%, and APAC and other regions rose 7%.
Client Spending and AI Products Add to Growth
Fractal reported a NRR rate of 115% for its Fractal.ai business, indicating that its existing clients collectively increased their spending. The number of clients generating more than $1 million in trailing 12-month revenue rose to 58 from 52 a year earlier.
The company’s AI products, including its Cogentiq agentic AI platform, recorded an annual revenue run-rate of more than Rs 150 crore, up 39% YoY.
The results point to continued demand for enterprise AI and analytics services, particularly in healthcare and financial services. At the same time, the decline in gross margin and weakness in TMT underline the importance of managing talent costs and maintaining growth across industry segments.
Fractal Founders and Business
Founded in 2000, Fractal Analytics was co-founded by Srikanth Velamakanni and Pranay Agrawal. The company builds AI models, platforms and products for large enterprises and provides analytics and consulting services. Its product portfolio includes Cogentiq, Iqigai and Kalaido.ai.
Separately, Fractal’s board approved the winding up of Analytics Vidhya Inc., a step-down subsidiary. The company said the move would simplify its corporate structure, reduce compliance and administrative costs, and improve operational efficiency, without affecting ongoing business operations.
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