Key Financial Performance - Q1 FY27 (All figures in INR millions, unless specified)

Revenue: ₹9,125 (Q1 FY26: ₹7,605) - 20% YoY growth

Cost of Solutions: ₹4,955 (Q1 FY26: ₹4,152) - 19% YoY increase

Gross Profit: ₹4,170 (Q1 FY26: ₹3,454) - 21% YoY growth

Gross Profit Margin: 45.7% (Q1 FY26: 45.4%) - 29 bps improvement

SG&A Expenses: ₹2,220 (Q1 FY26: ₹1,995) - 11% YoY increase

R&D Expenses: ₹413 (Q1 FY26: ₹322) - 28% YoY increase, representing 4.5% of revenue

Adjusted EBITDA: ₹1,537 (Q1 FY26: ₹1,137) - 35% YoY growth

Adjusted EBITDA Margin: 16.8% (Q1 FY26: 15.0%) - 189 bps expansion

ESOP and Retention Bonus: ₹108 (Q1 FY26: ₹110)

Exceptional Items (Gain)/Loss: (₹69) gain (Q1 FY26: nil)

Other Income: ₹196 (Q1 FY26: ₹144) - 36% YoY increase

Share of Loss of an Associate: ₹234 (Q1 FY26: ₹223) - 5% YoY increase

EBITDA: ₹1,460 (Q1 FY26: ₹948) - 54% YoY growth

EBITDA Margin: 16.0% (Q1 FY26: 12.5%) - 350 bps expansion

Depreciation & Amortization: ₹398 (Q1 FY26: ₹300) - 32% YoY increase

Finance Cost: ₹88 (Q1 FY26: ₹118) - 25% YoY decrease

Tax Expense: ₹251 (Q1 FY26: ₹153) - 64% YoY increase

Net Income: ₹723 (Q1 FY26: ₹377) - 92% YoY growth

Net Income Margin: 7.9% (Q1 FY26: 5.0%) - 296 bps expansion

Earnings per Share (INR): ₹4.31 (Q1 FY26: ₹2.41) - 79% YoY growth

Additional Financial Metrics:

  • Net Income excluding share of loss of associates: ₹957m, representing 10.5% margin and 59% YoY growth
  • Diluted EPS: ₹4.09 with 78% YoY growth; Diluted EPS excluding associates: ₹5.39
  • Cash flow from operations was negative in Q1 due to payouts of variable pay for FY26
  • Cash and cash equivalents (including MFs and FDs) as of June 30, 2026: ₹16,378m
  • This includes IPO proceeds of ₹6,891m (net of offer expenses)
  • Debt repayment of ₹2,887m completed in April 2026 as planned in use of proceeds
  • Zero long-term debt outstanding
  • CFO as % of Adj. EBITDA: 70%

Business Performance Highlights

Fractal.ai Segment:

  • Net Revenue Retention (NRR calculated in INR): Not quantified but mentioned as a key metric
  • Revenue per Billable FTE: Calculated based on trailing twelve months data (not quantified)
  • Net Promoter Score (NPS): Presented as a score above 40 for B2B brands (specific score not provided)
  • Revenue diversification: CPGR (Consumer products goods and retail), BFSI (Banking, financial services and Insurance), HLS (Healthcare and life sciences), TMT (Technology, Media & Telecom), and others (energy, travel, industrials)
  • Geographic revenue based on client billing location

Fractal Alpha Segment:

  • Continued investments with revenue and gross margin details provided in charts but not quantified in text

Operational and Strategic Updates

Client Case Studies:

1. US Housing Finance Institution: Built AI-powered underwriting system that cuts preparation time by ~50% and roughly doubles throughput for multifamily deals

2. Fortune 50 US Retailer: Developed AI-powered fuel pricing engine that reduces reaction time from 5-8 hours to 15 minutes across hundreds of gas stations

3. Fortune 50 US Payer: Created hands-on program to turn engineers into deployment-ready FDEs (Full Deployment Engineers) in three weeks

4. Private Equity Firm: Using Cogentiq Data Science to automate machine learning workflow for sales estimation and performance decomposition of portfolio companies

5. Brihanmumbai Municipal Corporation (BMC): Partnership with Cogentiq Health for Mumbai's health intelligence layer

Product and Platform Development:

  • Cogentiq positioned as flagship agentic AI platform powering all products and solutions
  • Three integrated AI pillars: interpreting AI-native enterprise across people, process, and technology

Growth Strategy:

  • Help Market-Winning Companies (MWCs) transform business with AI
  • Accelerate client success with Cogentiq and reusable assets
  • Partner with leading technology companies
  • Continue to build a Great Place to Work with specific hiring principles and programs
  • Complement growth through inorganic expansion with defined acquisition principles

Capital Structure:

  • Strong balance sheet with ₹16,378m cash and cash equivalents
  • Zero long-term debt providing significant acquisition capacity
  • Strong cash conversion (70% of Adj. EBITDA) enabling self-funded growth

ESG Initiatives:

  • Aiming for net zero emissions by or before 2040
  • GHG emissions assured by independent third-party auditor annually since FY20
  • Major offices run on clean energy; company cars switching to electric
  • CDP climate rating of 'B' for three consecutive years
  • Certified Great Place to Work for 10 years in India
  • Strong IT systems with global security certifications and privacy compliance

Awards and Recognition:

  • Leader in Supply Chain Analytics (ISG) - two years in a row
  • Leader in Data Engineering Service Providers (AIM) - three years in a row
  • Leader in Generative AI (AIM) - four years in a row
  • Key Vendor in multiple categories (IDC, HfS Research)
  • Representative Vendor in Retail Assortment Management (Gartner)

Shareholding Information

  • Outstanding shares: 171,965,112
  • ESOP 2007 & 2019: 13,496,342 shares at strike price ₹447 (exercise value: ₹6,035m)
  • MIP Time based: 2,635,235 shares at strike price ₹205 (exercise value: ₹540m)
  • MIP Performance based: 9,730,817 shares at strike price ₹198 (exercise value: ₹1,925m)
  • Fully diluted shares*: 197,827,506 (total exercise value: ₹8,500m)

*Excludes reserved, not granted count of 1,592,448 shares

Additional Information

  • Company CIN: L72400MH2000PLC125369
  • Registered address: Level 7, Commerz II, International Business Park, Oberoi Garden City, Off W. E. Highway Goregaon (E), Mumbai - 400063
  • Investor relations contact: +91 22 6850 5800, investorrelations@fractal.ai
  • Full results available at: https://fractal.ai/investor-relations