Fractal’s revenue surpasses $100 million for the first time
Fractal Analytics generated more than $100 million in revenue in the quarter ended September 30, 2026. The Indian company said revenue rose 20% year on year, while net income increased 139%.
- Fractal’s operating revenue was 9565 million Indian rupees.
- Revenue rose 20% year on year.
- Net income increased 139% to 792 million rupees.
- The Healthcare and Life Sciences business grew 79%.
- The product business’s annualized revenue run rate exceeded 1500 million rupees.
Strong quarterly financial results
Fractal Analytics Ltd announced the consolidated results for the second quarter of fiscal 2027 on November 3. The company reported operating revenue of 9565 million Indian rupees, representing 20% year-on-year growth. On a constant-currency basis, growth was 10%.
Net income rose to 792 million rupees, a 139% increase from the same period a year earlier. The company also reported improved profit margins. Adjusted EBITDA margin increased by 123 basis points year on year to 16%.
The release’s headline stated that EBITDA grew 71% year on year. Fractal called this the first quarter in which its revenue exceeded $100 million.
Healthcare drove growth
The strongest growth came from Healthcare and Life Sciences, which expanded 79% year on year. Revenue in the Banking, Financial Services and Insurance, or BFSI, segment rose 30% during the quarter.
Fractal’s largest industry area, CPGR, which covers consumer products and retail, grew 11%. Technology, media and telecommunications, or TMT, improved 6% sequentially, which the company said marked a strong return to sequential growth.
The product business, which includes the Cogentiq agentic AI platform, surpassed an annualized revenue run rate of 1500 million rupees. This represents 39% growth year on year. Net revenue retention among existing customers was 115%, while the net promoter score was 76.
Fractal focuses on proprietary models and enterprise decisions
As an enterprise AI company, Fractal develops proprietary models, platforms and products for Fortune 500 companies. Its strategy is built on three pillars. AIT uses artificial intelligence to transform workflows and business decisions, AIF builds a trusted and governed data and knowledge layer, and AIW supports the redesign of roles and enterprise capabilities.
The Cogentiq platform supports all three areas. The company employs more than 6000 professionals across North America, Europe, the Middle East and Africa, as well as the Asia-Pacific region. Fractal allocates more than 6% of its revenue to AI research and development, while its research team builds proprietary models, including Fathom reasoning models.
The company was also selected to develop a large-scale reasoning model for India under the IndiaAI Mission. Fractal said co-founder and Group CEO Srikanth Velamakanni believes that AI models are becoming increasingly capable and cheaper, placing companies at greater risk if they leave their most important decisions unchanged.
What does this mean for customers?
The report indicates that Fractal is generating growing revenue from healthcare, financial services, consumer products and retail customers, while its product business is also accelerating. Net revenue retention of 115% suggests that existing customers collectively spent more on the company’s services than in the previous period, including the effects of upselling and expansion.
Fractal’s proprietary models, platforms and products are designed to embed AI into enterprise decision-making. According to the results released now, the company is continuing this work alongside rising revenue, higher net income and an improved adjusted EBITDA margin.
