Fractal Q2: Profit Zooms 139% YoY to ₹79 Cr, Revenue At ₹957 Cr

AI and advanced analytics company Fractal more than doubled (139%) its net profit to ₹79.2 Cr in the second quarter (Q2) of the fiscal year 2026-27 (FY27) from ₹33.2 Cr in the year ago quarter. Sequentially, the bottom line also rose 9.5% from ₹115.8 Cr in Q1 FY27.

Fractal attributed the growing profits to rising revenues, improving margins, increased spending by clients and broad-based growth across all its key verticals.

Revenue from operations rose nearly 20% to a record ₹956.5 Cr in the quarter under review as against ₹798.5 Cr in the preceding quarter. On a quarter-on-quarter (QoQ), the top line grew 4.8% from ₹912.5 Cr in Q4 FY26.

Including other income of ₹28.8 Cr, Fractal’s total income stood at ₹985.3 Cr during the quarter under review. In line with its top line, the company’s total expenses also rose 15% to ₹858.9 Cr in Q2 FY27 as against ₹746.6 Cr in the quarter ending September 2025. 

In its investor presentation, Fractal also said that its adjusted EBITDA rose 30% YoY to ₹154.9 Cr during the quarter under review, while adjusted EBITDA margin improved by 123 bps YoY to 16.2%. The company attributed this to operating leverage; short-term impact in GM driven by investment in AI engineering talent.

Fractal also reported a loss of ₹23.2 Cr from an associate in the quarter, while its tax expenses stood at ₹24 Cr. 

Giving a category-wise revenue split, the AI company claimed that its healthcare and life sciences (HLS) vertical clocked 79% YoY growth in revenues in Q2 FY27, while the banking, financial services and insurance (BFSI) revenue rose 30% YoY. Consumer packaged goods and retail (CPGR), its biggest portfolio, saw 19% YoY top line jump. 

However, Fractal’s revenues from telecom, media, and technology (TMT) clients declined 18% YoY in Q2 FY27.

Giving a geographical breakdown, Fractal said that Americas accounted for the bulk 67.3% of its total revenue during the quarter, while Europe and APAC (Asia Pacific), and other regions, contributed 21.5% and 11.2%, respectively. 

In line with this, revenues from the Americas rose 22% YoY, while the top line from Europe and APAC and other regions jumped 20% and 7%, respectively. 

The AI analytics company also said that its revenue per billable full-time equivalent (FTE) stood at ₹75 Lakh during the quarter under review, up 2% YoY. Billable FTE is an outsourcing-based billing model, where clients pay a fixed monthly rate for a dedicated employee’s time rather than per task. 

Fractal also claimed that it increased its $20 Mn+ clients to four from six in Q2 FY26, while $1 Mn+ sized clients grew to 58 in Q2 FY27 from 52 in the year ago quarter.

In a filing with the exchanges, Fractal also said that its board approved the winding up of its step-down subsidiary, Analytics Vidhya Inc. The AI analytics company noted that this will lead to the simplification of the group’s corporate structure and reduce compliance, administrative overheads, and enhance operational efficiency.

Founded in 2000, Fractal generates revenue through analytics and consulting services as well as licensing and subscriptions for its AI platforms such as Cogentiq, Iqigai and Kalaido.ai. It serves global enterprises such as Google and Wells Fargo. 

Shares of Fractal closed Tuesday’s trading session at ₹713.3 on the BSE.

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