• Type of Event: The document contains the transcript of an Earnings Conference Call for Q2 FY2027.
  • Date and Time: The call was held on Wednesday, November 04, 2026. A specific time was not mentioned in the transcript.
  • Purpose: The stated purpose was to discuss the company's performance for the quarter and six months ended September 30, 2026 (Q2 FY2027).
  • Earnings Announcement: The call was held after the earnings announcement, as it discusses the already-filed results.
  • Management Participants: The following management participants were present on the call:
  • Mr. Srikanth Velamakanni – Co-Founder & Group CEO
  • Mr. Pranay Agrawal – Co-Founder & CEO
  • Ms. Shilpa Kedia – Chief Financial Officer
  • Mr. Satish Raman – Chief Strategy Officer
  • Ms. Svetlana Joshi – Investor Relations
  • Ms. Anjali Garg – Investor Relations
  • Availability of Materials: The results, investor presentation, and fact sheet were filed with the exchanges and are available on the company's investor relations website. The specific transcript is available at: https://fractal.ai/docs/Investor-Relations/Financial-Statements-and-Annual-Reports/2027/Q2/Fractal-Transcript-Q2-FY2027.pdf
  • UPSI Statement: The call began with a standard caution that certain statements may be forward-looking and are subject to risks and uncertainties, but there was no explicit statement confirming that no Unpublished Price Sensitive Information (UPSI) would be shared.

Financial Highlights & Strategic Themes (As Disclosed on the Call)

The call discussed the following financial period: Q2 FY2027 (quarter ended September 30, 2026) and H1 FY2027 (six months ended September 30, 2026).

Key Financial Figures for Q2 FY2027:

  • Revenue: INR 957 crore (up 20% YoY, 5% QoQ). In constant currency, growth was 10% YoY and 4% QoQ. This crossed the $100 million threshold for the first time.
  • Net Income: INR 79 crore (up 139% YoY). Net income margin expanded to 8.3% from 4% a year ago.
  • Excluding share of loss from associate (Qure.ai), Net Income was INR 102 crore (10.7% of revenue).
  • Adjusted EBITDA: Grew 30% YoY. Adjusted EBITDA margin was 16.2%, expanding 123 basis points YoY.
  • Gross Margin: 44%, down 225 basis points YoY due to investment in AI engineering talent.
  • Diluted EPS: INR 4.48 (up 132% YoY). Diluted EPS without associate loss was INR 5.76.
  • Cash & Equivalents: INR 1,728 crore as of September 30, 2026, including IPO proceeds of INR 608 crore.
  • DSO: 76 days, up from 71 days a year ago, attributed to a timing effect on collections.

Key Financial Figures for H1 FY2027:

  • Revenue: INR 1,869 crore (up 20% YoY; 10% in constant currency).
  • Adjusted EBITDA Margin: 16.5%, up 155 basis points YoY.
  • Net Income: INR 151 crore (up 114% YoY). Net income margin was 8.1%.
  • Excluding share of loss from associate, Net Income for H1 was INR 198 crore (10.6% of revenue).

Vertical-wise Revenue Growth (YoY):

  • Consumer Packaged Goods & Retail (CPGR): +11%
  • Healthcare & Life Sciences (HLS): +79%
  • Technology, Media & Telecom (TMT): Sequentially grew +6% (after declining for 5 quarters)
  • Banking, Financial Services & Insurance (BFSI): +30%
  • Others (Energy, Travel, Industrial): +47%

Geography-wise Revenue Growth (YoY):

  • Americas: +22%
  • Europe: +20%
  • APAC: +7%

Operational Metrics:

  • Net Promoter Score (NPS): 76
  • Net Revenue Retention (NRR): 115%
  • Number of $1M+ clients: 58 (20 are above $5M)
  • Top 10 client concentration: 51.7% of revenue (down from 53.2%)

Product Business & Fractal Alpha:

  • Product Revenue: INR 38 crore for the quarter (4% of total revenue).
  • Product Annual Run Rate: Over INR 150 crore (up 39% YoY).
  • Remaining Performance Obligations (RPO) for products: Over INR 200 crore.
  • Fractal Alpha segment (Asper.ai & Analytics Vidhya) revenue: INR 34 crore (up 40% YoY).
  • Fractal Alpha adjusted segment loss: INR 10 crore for the quarter.

Forward-Looking Statements & Strategic Themes:

Management expressed excitement about three key areas: 1) The growth of the product portfolio (Cogentiq, Asper.ai), 2) Growth levers including larger client relationships and a healthy M&A pipeline, and 3) Leadership changes, including the new CFO, Shilpa Kedia.

Expectations were provided for Q3 and Q4, including a sequential recovery in gross margins, TMT vertical growth, and Fractal Alpha approaching breakeven by the end of the calendar year.

Additional Notes Section

  • Attachments: The regulatory filing intimates that the transcript was enclosed (Encl: a/a).
  • Financial Data: Significant financial data was discussed and is detailed in the summary above.
  • Logistical Details: Dial-in numbers and access codes were not included in the provided transcript excerpt.