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FinanceFractal Q1 revenue up 20%, net income surges 92%
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Fractal Analytics Ltd reported consolidated financial results for Q1 FY27, ending June 30, 2026. The company posted operating revenue of Rs 912.5 Cr, a 20% year-on-year increase, and net income growth of 92% YoY to Rs 72.3 Cr. Adjusted EBITDA grew 35% YoY, with margins expanding 189 bps to 17%. Growth was led by the Healthcare and Life Sciences (HLS) industry, which surged 69% YoY, becoming the second-largest industry in the portfolio. BFSI grew 36% YoY, while CPGR grew 19% YoY. TMT declined 22% YoY. Net Revenue Retention stood at 117%, and Net Promoter Score at 77. Group CEO Srikanth Velamakanni attributed performance to enterprise AI transformation budgets and data sovereignty trends. Fractal invests over 6% of revenue in AI R&D and employs over 6,000 professionals globally.
Source report
Published - July 24, 2026 10:30 am IST
MUMBAI, India, July 24, 2026 — Fractal Analytics Ltd (BSE: 544700) (NSE: FRACTAL) announced its consolidated financial results for Q1 FY27, ending June 30, 2026.
Key Financial Highlights
- Operating Revenue: Rs 912.5 Cr, up 20% year-on-year (YoY)
- Net Income: Rs 72.3 Cr, up 92% YoY
- Adjusted EBITDA: Grew 35% YoY
- Gross Margin: 46%, up 29 basis points (bps)
- Adjusted EBITDA Margin: 17%, up 189 bps
Industry Performance
Revenue growth was led by the company's Healthcare and Life Sciences (HLS) industry, which recorded 69% growth YoY. Strong sustained growth in HLS over recent quarters has made it the second-largest industry in Fractal's portfolio.
- Banking, Financial Services and Insurance (BFSI): Grew 36% YoY
- Consumer Packaged Goods and Retail (CPGR): Grew 19% YoY (largest industry)
- Technology, Media and Telecom (TMT): Declined 22% YoY
Client Metrics
Fractal's focus on deepening customer relationships continues to yield positive results:
- Net Revenue Retention: 117% in Q1
- Net Promoter Score (NPS): 77 during the period
Management Commentary
Srikanth Velamakanni, Group CEO and Executive Vice-Chairman, commented:
"Enterprises are putting real transformation budgets behind AI now and we're seeing it directly in the size of the deals coming to us. TMT was the drag on our headline growth this quarter. Excluding TMT, our business grew 35% year on year, which is a better read on the underlying demand we're seeing.
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As data sovereignty becomes a bigger priority for governments and enterprises, and as open-weight models keep improving, clients need a partner who can work across models and infrastructure. We have invested heavily in our people, our research, and our own intellectual property to be that partner."
About Fractal
Fractal Analytics Ltd (BSE: 544700) (NSE: FRACTAL) is a globally recognized pure-play enterprise AI company trusted by Fortune 500®-sized enterprises to power decision-making through AI services, solutions, and products, anchored by Cogentiq, its flagship agentic AI platform.
With over 6,000 professionals across North America, EMEA, and Asia-Pacific, Fractal partners with business leaders to drive competitive differentiation by embedding AI into critical decisions across business functions and industry verticals.
Fractal invests more than 6% of its revenue in AI R&D, supporting foundational AI research, product development, and IP creation. Its track record includes developing proprietary models and products such as Cogentiq Health - Vaidya.ai and Cogentiq Data Science - PiEvolve, as well as incubating and spinning out Qure.ai, a global healthcare AI leader.
Fractal's suite of businesses also includes Asper.ai (a Revenue Growth Management product for CPG companies) and Analytics Vidhya (an Ed-tech platform).
For more information, visit www.fractal.ai.
This is a company press release that is not part of editorial content. No journalist of The Hindu was involved in the publication of this release.
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Fractal posts 20% revenue growth and 92% net income growth in Q1 FY27