Fractal Analytics Achieves $100 Million Quarter, EBITDA Grows by 71% Year-over-Year

Fractal Analytics Sets New Financial Milestone

Fractal Analytics, an enterprise AI powerhouse, has announced remarkable financial results for the second quarter of FY27, finishing on September 30, 2026. Breaking records, the company achieved consolidated revenues of INR 9,565 million, marking a year-over-year (YoY) growth rate of 20%. This milestone includes an impressive 10% growth when adjusted for constant currency, showcasing Fractal's robust performance across multiple industry verticals, especially in Healthcare and Life Sciences (HLS).

Stellar Performance Across Industries

In particular, the HLS sector experienced a phenomenal growth rate of 79% YoY. Similarly, the Banking, Financial Services, and Insurance (BFSI) sectors also performed admirably with a growth expansion of 30%. Fractal's Consumer Packaged Goods and Retail (CPGR) sector saw an upward tilt of 11% YoY, while Technology, Media, and Telecommunications (TMT) experienced a quick sequential rebound with a 6% quarter-over-quarter growth. Furthermore, Fractal's agentic AI platform, Cogentiq, achieved a remarkable annual revenue run-rate exceeding INR 1,500 million—growing by 39% year-over-year.

Deepening Customer Relationships

A testament to customer loyalty, Fractal reported a net revenue retention rate of 115% in Q2, indicating existing clients increased their spending with the company. Additionally, the firm's Net Promoter Score (NPS) in the same quarter was an impressive 76, reflecting high client satisfaction and openness to recommend Fractal's services to other businesses.

Profit margins also showcased improvement with the company's adjusted EBITDA margin expanding by 123 basis points (bps) year-over-year to 16%. Net income surged by a striking 139% YoY, landing at INR 792 million.

CEO Comments on Future Outlook

Srikanth Velamakanni, Co-founder and Group CEO, shared insights on the company's journey, stating, "AI models are getting more capable every week and cheaper every quarter. We are positioning Fractal to lead the charge as businesses rethink their critical decisions in alignment with evolving AI capabilities. This quarter's results, crossing the $100 million revenue mark while more than doubling our net income, underscore that we are on the right path."

Fractal's Vision and Commitment

Fractal Analytics aims to revolutionize decision-making processes within enterprises through its innovative AI models and products. Their strategy hinges on three foundational pillars:
1. Artificial Intelligence Transformations (AIT) - redefining business workflows with AI.
2. Artificial Intelligence Foundations (AIF) - building a reliable and governed layer of data.
3. Artificial Intelligence Workforce (AIW) - developing talent equipped to embrace AI technologies.

These initiatives are powered by the Cogentiq platform and are crucial for companies that aspire to become AI-native.

Employing over 6,000 professionals across regions like North America, EMEA, and Asia-Pacific, Fractal collaborates with Fortune 500 organizations to forge new competitive advantages through AI integration into core business functions. The company is heavily invested in its research and development, committing over 6% of its revenue to AI initiatives, reinforcing its role as a leader in the space.

With an impressive array of AI models, including healthcare-specific solutions like Vaidya.ai, which has notably garnered recognition for excellence, Fractal is setting benchmarks in the AI sector. Their innovative spirit even led to the creation of Qure.ai, a leading enterprise in rapid healthcare diagnostics.

Fractal Analytics continues to shape the future of AI in business, demonstrating profound growth strides that solidify its standing as a trusted partner for enterprises aiming to harness the power of AI for strategic decision-making.