Fractal Analytics Reports ₹100.1 Crore Q3 Profit

Shares of AI-based company Fractal Analytics saw an increase of ~9% in value, touching ₹822 on Friday as the company announced its first quarterly results since its listing on Indian bourses.

Fractal Analytics shares were listed on the Indian stock exchanges on February 16, 2026, after raising ₹2,834 crore as part of its initial public offering. The company announced its financial results for the quarter ended 31 December 31 2025.

How Did Fractal Analytics Perform In Q3 FY26?

Fractal Analytics reported consolidated revenue of ₹854.4 crore in the third quarter of FY26. This represents a 21% increase compared with the same quarter last year.

The company said growth came mainly from healthcare and banking clients, which account for nearly 20% of total revenue. From these specific sectors alone, revenue saw an increase of 78% year-on-year.

The banking and financial services segment, which accounts for about 12% of revenue, recorded 26% growth during the quarter.

Fractal’s Net Promoter Score stood at 77, and it reported net revenue retention of 114% for the quarter. This means existing clients increased their spending with the company compared with the previous year.

What Do The Profit Numbers Show?

Profitability also improved during the quarter.

• Adjusted EBITDA stood at ₹152.1 crore, marking a 24% increase year on year.

• EBITDA margin came in at 17.8%.

• The company reported a gross margin of 47.2%.

• Profit after tax for the quarter was ₹100.1 crore.

Fractal also reported an increase in large enterprise clients. The number of clients generating more than $20 million in annual revenue rose to six. The number of clients contributing more than $1 million annually increased to 58.

Group CEO and Executive Vice-Chairman Srikanth Velamakanni said the company saw strong demand as businesses increased their use of artificial intelligence in decision-making.

What Did The Company Say About Its AI Products?

Its healthcare-focused model, Vaidya.ai 2.0, scored above 50 on OpenAI’s HealthBench (Hard). The benchmark tests how AI models handle complex clinical reasoning and diagnosis.

Fractal also said its platform PiEvolve (an evolutionary engine for autonomous machine learning and scientific discovery) ranked among the top-performing agents on OpenAI’s MLE Bench.

According to the company, the system performed better than agents developed by technology companies, including Google, Microsoft, and Meta.

Fractal Analytics positions itself as an enterprise AI and analytics firm working with global companies. The company employs more than 5,000 professionals worldwide and works with large businesses across industries, including banking, healthcare and consumer sectors.

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Investor Takeaway

Fractal Analytics’ latest results arrive at a time when investors are still forming views on India’s first listed pure play artificial intelligence company. For investors, the key question now is execution. Fractal operates in the fast-growing enterprise AI segment, which many companies are beginning to adopt for decision making, pricing, and supply chain optimisation.

In the near term, the stock may remain sensitive to quarterly performance and deal wins. But over the longer term, its ability to convert the global shift toward enterprise AI into consistent revenue growth could determine how the market values the company.

Sources

Economic Times

Yahoo Finance Singapore