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Fractal makes ₹100 cr profit in first quarter post-listing

Fractal Analytics Ltd, a newly listed Indian AI and analytics company, reported a profit after tax (PAT) of ₹100 crore in its first quarterly results since its stock market debut on February 16, 2026. The results cover the third quarter of FY 2026 (October–December 2025) and mark a strong start for the company as a publicly traded firm.

The company’s revenue rose 21% year‑on‑year to ₹854.4 crore, driven by growing demand from clients in healthcare, life sciences, and banking and financial services (BFSI) sectors. Healthcare alone contributed significantly, with revenue rising nearly 78%, as Fractal’s AI solutions for diagnostics, drug research, and patient analytics gained traction globally. The BFSI sector also increased adoption of predictive analytics and data-driven decision-making tools.

Fractal improved profitability metrics, with adjusted EBITDA up 24% year‑on‑year and gross margins exceeding 47%, indicating efficient operations and strong cost management. The company’s net revenue retention stood at 114%, showing that existing clients increased their usage of Fractal’s products over time.

Fractal’s AI offerings have gained recognition internationally. Its Vaidya.ai 2.0 model scored above 50 on OpenAI’s HealthBench (Hard) benchmark for clinical reasoning, while its PiEvolve engine outperformed several global AI models in independent evaluations. These products have strengthened the company’s position in the competitive enterprise AI market.

With over 5,000 employees worldwide, Fractal is expanding its services across sectors including healthcare, BFSI, consumer goods, and technology. The strong quarterly performance highlights robust revenue growth, expanding margins, and increasing client engagement, setting the stage for continued growth and solidifying investor confidence in the company’s future.

Investors welcomed the results, and trading activity in Fractal’s shares increased following the quarterly announcement.

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Corporate

Fractal Analytics IPO opens softly, lists 3% below price

Fractal Analytics, one of India’s leading AI and advanced analytics companies, saw its shares enter the market on a subdued note on Monday, February 16, 2026. The stock opened at ₹876 on the NSE, around 3% below its ₹900 IPO price, while the BSE listing remained nearly flat.

The company raised ₹2,834 crore through its IPO, combining a fresh issue of ₹1,023 crore and an offer for sale of ₹1,810 crore from existing shareholders. Though the IPO was 2.66 times subscribed, most interest came from institutional investors, with retail participation being modest.

Market experts say the soft listing reflects caution over high valuations for AI-focused firms. While short-term gains may be limited, analysts see long-term potential for investors betting on the global growth of AI and analytics.

Founded in 2000, Fractal Analytics serves global clients across consumer goods, retail, healthcare, technology, and finance. In FY25, it reported revenue of ₹2,765 crore and a net profit of ₹220.6 crore, bouncing back from previous losses.

Proceeds from the IPO will fund U.S. expansion, R&D, debt repayment, and strategic growth initiatives, supporting the company’s ambition to strengthen its global footprint.

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Corporate

₹2,834 cr Fractal Analytics IPO subscribed 2.66 times

The ₹2,834-crore initial public offering (IPO) of Fractal Analytics closed with an overall subscription of 2.66 times on the final day of bidding, reflecting a mixed response from investors.

The IPO, priced in the band of ₹857 to ₹900 per share, saw stronger participation on the last day after a slow start. Qualified Institutional Buyers (QIBs) played a key role in lifting the issue, subscribing their portion over four times. However, retail individual investors and non-institutional investors showed relatively cautious interest, with their segments being subscribed just about one time each.

Fractal Analytics is one of India’s leading artificial intelligence (AI) and advanced analytics companies, serving global clients across industries such as healthcare, consumer goods, banking and technology. The IPO attracted attention as one of the first large pure-play AI companies from India to tap the public markets.

Despite the full subscription, market sentiment appeared guarded. The grey market premium (GMP), which indicates unofficial market expectations before listing, remained muted and even softened closer to the closing day. This suggests that investors are not expecting very strong listing gains.

The company had earlier reduced the size of its IPO compared to initial plans, possibly to improve investor appetite amid fluctuating market conditions. Analysts have pointed out that while Fractal operates in a high-growth AI segment, valuation concerns and broader market volatility may have tempered enthusiasm, especially among retail participants.

Funds raised from the IPO will be used for business expansion, investment in subsidiaries, repayment of borrowings, strengthening technology capabilities, and general corporate purposes.

Share allotment is expected to be finalised shortly, with the stock likely to list on the stock exchanges next week. Investors will closely watch the listing performance to gauge market confidence in AI-focused companies entering the public space.

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