Fractal Analytics Q2 FY27: Net Profit Jumps 139% to ₹79.2 Crore
- Fractal Analytics reported ₹79.2 crore net profit in Q2 FY27, up 139% year-on-year, while revenue increased 19.8% to ₹956.5 crore.
- The company recorded its first-ever quarterly revenue above $100 million, with 10% growth on a constant-currency basis.
- Healthcare and Life Sciences revenue grew 79%, while BFSI revenue increased 30% during the quarter.
Enterprise AI company Fractal Analytics reported a 139% year-on-year (YoY) increase in consolidated net profit to ₹79.2 crore in Q2 FY27, compared with ₹33.2 crore in the corresponding quarter last year.
Revenue from operations increased 19.8% YoY to ₹956.5 crore, against ₹798.5 crore in Q2 FY26. The company also recorded its first-ever quarter with revenue exceeding $100 million. On a constant-currency basis, revenue grew 10% year-on-year.
On a sequential basis, revenue increased 4.8% from ₹912.5 crore in Q1 FY27, while net profit rose 9.5% from ₹72.3 crore. Including other income of ₹28.8 crore, total income stood at ₹985.3 crore during the quarter.
Fractal Adjusted EBITDA Grows 30%
Fractal’s adjusted EBITDA increased 30% year-on-year to ₹154.9 crore in Q2 FY27, compared with ₹119.5 crore in the year-ago quarter. Its adjusted EBITDA margin expanded 123 basis points to 16.2% from 15%.
Reported EBITDA increased 71% year-on-year to approximately ₹155.7 crore. The company attributed the improvement in adjusted EBITDA margin to operating leverage, while investments in AI engineering talent affected gross margins in the short term.
Gross margin declined 225 basis points to 44%, compared with 46.2% in Q2 FY26. Total expenses increased approximately 15% to ₹858.9 crore from ₹746.6 crore. The company also reported a ₹23.2 crore share of loss from an associate and tax expenses of ₹24 crore.
Among its industry verticals, Healthcare and Life Sciences (HLS) recorded the highest growth, with revenue increasing 79% year-on-year. Banking, Financial Services and Insurance (BFSI) revenue grew 30%, while Consumer Packaged Goods and Retail (CPGR), its largest industry vertical, increased 11%.
Technology, Media and Telecommunications (TMT) revenue declined 18% year-on-year, although the segment recorded a 6% sequential recovery.
Geographically, the Americas accounted for 67.3% of revenue, followed by Europe at 21.5% and Asia-Pacific and other regions at 11.2%. Revenue from the Americas grew 22% year-on-year, while Europe and APAC and other regions recorded growth of 20% and 7%, respectively.
Fractal’s revenue per billable full-time equivalent (FTE) stood at approximately ₹75 lakh on a trailing 12-month basis, up 2% year-on-year. The number of clients generating more than $1 million in annual revenue increased to 58 from 52 in the corresponding period last year.
Fractal’s AI Products Business Crosses ₹150 Crore Revenue Run-Rate
Fractal’s products business, which includes its Cogentiq agentic AI platform, crossed an annual revenue run-rate of ₹150 crore, representing 39% year-on-year growth. The products business accounted for approximately 4% of the company’s overall revenue during the quarter.
Revenue from products stood at around ₹38.3 crore in Q2 FY27. The company also reported a net revenue retention (NRR) of 115% for its Fractal.ai business, indicating increased spending by existing customers, and a Net Promoter Score (NPS) of 76.
Founded in 2000, Fractal provides artificial intelligence, analytics and consulting services to large enterprises. Its business includes AI platforms, enterprise decision-making solutions and products such as Cogentiq, Iqigai and Kalaido.ai. The company also develops proprietary AI models and invests in AI research and engineering.
In a separate exchange filing, Fractal said its board had approved the winding up of its step-down subsidiary, Analytics Vidhya Inc. The company said the decision was intended to simplify its corporate structure and reduce compliance and administrative costs.
FAQs
What was Fractal Analytics' net profit in Q2 FY27?
Fractal Analytics reported a consolidated net profit of ₹79.2 crore, up 139% from ₹33.2 crore in Q2 FY26.
How much revenue did Fractal generate in Q2 FY27?
Revenue from operations increased 19.8% year-on-year to ₹956.5 crore, marking its first quarter with revenue exceeding $100 million.
Which business vertical recorded the highest growth for Fractal?
Healthcare and Life Sciences recorded the highest growth, with revenue increasing 79% year-on-year.
How much did Fractal's adjusted EBITDA grow?
Adjusted EBITDA increased 30% year-on-year to ₹154.9 crore, with the margin improving to 16.2%.
What is Fractal's Cogentiq platform?
Cogentiq is Fractal's agentic AI platform, designed to support enterprise AI applications and workflows. It is part of the company's AI products business, which crossed a ₹150 crore annual revenue run-rate in Q2 FY27.
