Fractal Analytics Reports Strong Q3 Performance
Fractal Analytics Ltd., a leader in enterprise AI solutions, has announced impressive consolidated financial results for the third quarter of FY 2026, concluding on December 31, 2025. The company reported a net income exceeding INR 1,001 million, marking a significant milestone in its financial growth trajectory.
In Q3 FY26, Fractal witnessed a remarkable consolidated revenue of INR 8,544 million, reflecting a robust 21% year-over-year growth. This surge in revenue was largely attributed to increased demand from key sectors such as Healthcare and Life Sciences, which alone accounted for 20% of total revenue, experiencing a staggering growth of 78% YoY. Additionally, the Banking and Financial Services sector bolstered revenues by 26%, highlighting Fractal's diverse operational strengths.
Net Revenue Retention soared to 114% for the quarter, demonstrating the success Fractal has had in fostering strong relationships with existing clients. The company's Net Promoter Score (NPS), a crucial metric in client satisfaction, stood at an impressive 77 during this period, a testament to Fractal's commitment to client services. Notably, the number of clients generating over $20 million increased by two to a total of six, while those generating over $1 million rose by eight to 58 clients.
Fractal's Gross Margin improved slightly to 47.2%, enhancing the company's standing as one of the most competitive players in the industry. Moreover, Adjusted EBITDA recorded a robust growth rate of 24% YoY, reaching INR 1,521 million, while maintaining an EBITDA margin of 17.8%, illustrating the company's operational efficiency.
Innovative AI Solutions Leading the Charge
Fractal has continued to push the boundaries of AI technology. The company's flagship product, Vaidya.ai 2.0, became the first AI health assistant to score over 50 on OpenAI's HealthBench, a benchmark that evaluates advanced clinical reasoning capabilities against complex diagnostic scenarios. Vaidya.ai 2.0 surpassed leading AI models like ChatGPT-5 and Gemini Pro 3, confirming Fractal's cutting-edge position within the healthcare AI sector.
Another notable product, PiEvolve—an evolutionary agentic engine for autonomous machine learning—received accolades for outperforming key industry players on OpenAI's MLE-Bench. This groundbreaking engine positions Fractal at the forefront of scientific discovery and machine learning innovations.
Commenting on the successful quarter, Srikanth Velamakanni, CEO and Executive Vice-Chairman of Fractal, expressed pride in the company's performance across various metrics. He noted, "We delivered a great quarter, improving across nearly every metric. Our best-in-class organic growth, gross margins, and high client retention reflect the strength of our enterprise AI capabilities and the trust our clients place in us." Velamakanni further emphasized that the company is focused on solving complex enterprise issues through AI, positioning Fractal to lead in the transformation of industries while providing long-term value to clients and shareholders alike.
Fractal's strong financial results and innovative products signal a bright future as the company aims to continue its trajectory of growth and industry leadership in artificial intelligence. For all the latest updates and detailed financial reports, investors and stakeholders can visit the Investor Relations section on Fractal's official website at
Fractal.ai.
Fractal Analytics is dedicated not just to technological advancement but also to nurturing its relationships with clients around the globe. With a team of more than 5,000 professionals working across different regions, including North America, EMEA, and Asia-Pacific, Fractal collaborates with Fortune 500 companies, integrating AI into critical business processes such as growth strategies, supply chain management, pricing, and enhancing customer experiences.
As Fractal continues to invest over 5% of its annual revenue into AI research and development, the company is not only addressing immediate client needs but also paving the way for long-term advancements that will drive the future of enterprise decision-making through AI capabilities.
In summary, Fractal Analytics stands out in the crowded tech landscape with impressive financial growth figures, innovative healthcare technologies, and a solid commitment to AI development, ensuring it remains a powerhouse in the enterprise AI space.