The Pulse
Fractal Reports Its First $100 Million Revenue Quarter
Fractal Analytics reported its first quarter with revenue above $100 million in Q2 FY27, with operating revenue of INR 9,565 m. Net income rose 139% year over year to INR 792 m, while adjusted EBITDA margin reached 16%.
AI.info Team · Written with AI · fact-checked ·
AI models are getting more capable every week and cheaper every quarter. Within the next few quarters, we will cross a threshold where it becomes irresponsible and downright risky for companies to leave their most important decisions unchanged. We are building Fractal for that moment, and this quarter shows it: revenue crossed $100 million and net income more than doubled.
Srikanth Velamakanni, Co-founder and Group CEO of Fractal
Fractal Analytics Ltd announced its consolidated Q2 FY27 results on Nov. 3, 2026; the quarter ended Sept. 30. The company describes the period as its first-ever quarter with revenue above $100 million. Its shares trade on the BSE as 544700 and on the NSE as FRACTAL.
Healthcare and financial services lead growth
Consolidated operating revenue reached INR 9,565 m, up 20% year over year and 10% in constant-currency terms. Healthcare and Life Sciences led the company’s industry segments with 79% year-over-year growth. Banking, Financial Services and Insurance grew 30%, and Fractal said both segments had delivered sustained growth over several quarters. Consumer Packaged Goods and Retail, Fractal’s largest industry vertical, grew 11%; Technology, Media and Telecom recorded 6% quarter-over-quarter growth.
Fractal’s products, including its Cogentiq agentic AI platform, reached an annual revenue run-rate of more than INR 1,500 m, a 39% year-over-year increase. The company reported net revenue retention of 115% for Q2, a measure it defines by comparing revenue from clients active at the start of a period with those clients’ revenue in the previous period, including upsells, cross-sells and contractions. Its Net Promoter Score for the quarter was 76.
Margins improve as net income more than doubles
Adjusted EBITDA margin expanded by 123 basis points year over year to 16%. Net income increased 139% to INR 792 m. The release also reports 71% year-over-year EBITDA growth in its headline.
Cogentiq anchors Fractal’s three business pillars
Fractal describes itself as an enterprise AI company that builds models, platforms and products for Fortune 500 organizations. Its strategy has three pillars: AIT, which rebuilds business workflows and decisions with AI; AIF, which builds a governed data and knowledge layer; and AIW, which helps organizations redesign work and develop AI-ready talent. The company says Cogentiq, its flagship agentic AI platform, powers all three.
Fractal says it has more than 6,000 professionals across North America, EMEA and Asia-Pacific, and invests more than 6% of revenue in AI research and development. Its research team builds its own models, including the Fathom reasoning models, and Fractal was selected under the IndiaAI Mission to build a large reasoning model for India. The company also lists Vaidya.ai, whose Vaidya 2.0 model it says was the first to score above 50 on OpenAI’s HealthBench (hard), and PiEvolve among its models and products.
Other businesses span healthcare and education
Fractal incubated and spun out Qure.ai, which the company describes as a global healthcare AI leader focused on identifying and managing tuberculosis, lung cancer and stroke. Its other businesses include Asper.ai, a revenue growth management product for consumer packaged goods companies, and Analytics Vidhya, an ed-tech platform.