Financial Performance
Fractal Analytics Ltd announced its consolidated results for the first quarter of fiscal year 2027, which ended on 30 June 2026. The company posted operating revenue of Rs 912.5 crore, representing a 20 percent increase over the same quarter a year earlier. Revenue growth was driven primarily by the Healthcare and Life Sciences (HLS) vertical, which expanded 69 percent YoY and has become the second‑largest industry segment in Fractal’s portfolio. The Banking, Financial Services and Insurance (BFSI) segment recorded a 36 percent YoY rise, while Consumer Packaged Goods and Retail (CPGR) grew 19 percent YoY. In contrast, the Technology, Media & Telecom (TMT) segment contracted 22 percent YoY.
Profitability and Margins
Adjusted EBITDA rose 35 percent YoY, with the adjusted EBITDA margin expanding by 189 basis points to 17 percent. Gross margin improved by 29 basis points to 46 percent. Net income increased 92 percent YoY to Rs 72.3 crore.
Customer Metrics
The Fractal.ai segment achieved a net revenue retention of 117 percent in the quarter, indicating that existing clients increased their spend. The company’s Net Promoter Score for the period was 77.
Management Commentary
Group CEO and Executive Vice‑Chairman Srikanth Velamakanni said that enterprises are now allocating real transformation budgets to AI, which is reflected in larger deal sizes. He noted that TMT was a drag on headline growth and that, when TMT is excluded, the business grew 35 percent YoY, providing a clearer view of underlying demand. Velamakanni added that growing concerns around data sovereignty and the improvement of open‑weight models are prompting clients to seek partners capable of operating across models and infrastructure, and that Fractal has responded by heavily investing in talent, research and its own intellectual property.
Operational Highlights
Fractal invests more than 6 percent of its revenue in AI research and development, supporting foundational AI research, product development and IP creation. The firm employs over 6,000 professionals across North America, Europe‑Middle East‑Africa and Asia‑Pacific. Its product portfolio includes the Cogentiq AI platform, Cogentiq Health – Vaidya.ai, Cogentiq Data Science – PiEvolve, the spin‑out Qure.ai, the revenue‑growth‑management tool Asper.ai for CPG companies, and the ed‑tech platform Analytics Vidhya.
Additional Information
The press release was issued in Mumbai on 24 July 2026 and is distributed by PRNewswire. For further details, the company directs readers to its website at www.fractal.ai.