Fractal Analytics shares gain after quarterly profit crosses ₹100 crore, topline up 21%

Shares of Fractal Analytics Ltd. opened higher on Friday, March 6, after the company reported a strong quarterly performance, with revenue rising 20.8% year-on-year and 7% sequentially.

This marks the company's first earnings announcement since its listing.

Adjusted EBITDA margin improved to 17.8% from 17.4% earlier, while gross margin stood at 47%. Research and development spending accounted for 6.8% of revenue during the quarter.

Quarterly profit after tax also crossed the ₹100 crore mark.

Fractal sees a sizeable opportunity ahead, with its serviceable addressable market estimated at about $85 billion in FY2025, which is expected to expand to nearly $171 billion by FY2030.

The company reported cash and cash equivalents of ₹8,158 million, including liquid investments and bank deposits.

Constant currency revenue growth for the December quarter stood at 14% year-on-year and 5% quarter-on-quarter, while revenue for the first nine months of FY26 rose 20.2%.

Within its product-led business, Fractal Alpha reported revenue growth of 51% to ₹66.4 crore during the nine-month period, with gross margin expanding by 276 basis points to 70%.

Losses for the segment narrowed to ₹10.2 crore from ₹21.1 crore a year ago.

Sector-wise, healthcare saw the fastest growth with revenue rising 78% year-on-year, followed by BFSI at 26% and consumer packaged goods at 14%.

Revenue from technology, media and telecom declined 2% and accounts for about 25% of total revenue.

Regionally, revenue from the Americas grew 26% year-on-year and contributes 69% of total revenue, while Europe also expanded 26%.

Asia-Pacific declined 6% year-on-year and contributes around 12% of revenue.

The company currently has 58 clients generating more than $1 million in annual revenue, eight clients generating over $5 million, and six clients contributing more than $10 million annually.

In terms of sectoral mix, consumer packaged goods and retail contribute 36% of revenue, followed by technology, media and telecom at 25%, healthcare and life sciences at 20%, BFSI at 12%, and other sectors at 7%.

Fractal Analytics operates across AI-led consulting services and products.

Rather than competing directly with large general-purpose models such as those developed by OpenAI or Google, the company positions itself as a specialist that builds highly customised AI solutions for regulated industries, leveraging large language models like GPT and Gemini while adding deep domain expertise through its consulting-led approach.

Despite the strong results, the stock is trading around ₹758, below its issue price of ₹900. Fractal Analytics shares ended 3.60% lower on Thursday at ₹758. The stock declined 7% in the last five trading sessions.