Fractal saw a nearly 92% jump in profit after tax to ₹72.3 Cr in Q1 FY27 as against ₹37.7 Cr in the year ago quarter
The AI and advanced analytics company’s revenue from operations grew nearly 20% to ₹912.5 Cr from ₹760.5 Cr in Q1 FY26
In line with the top line, expenses also grew nearly 17% to ₹755.6 Cr in Q1 FY27 as against ₹699.6 Cr in the quarter ending June 2025
AI and advanced analytics company Fractal saw a nearly 92% jump in profit after tax to ₹72.3 Cr in the first quarter (Q1) of the fiscal year 2026-27 (FY27) as against ₹37.7 Cr in the year ago quarter. Sequentially, the bottom line declined 37.6% from ₹115.8 Cr in the preceding quarter.
The company’s revenue from operations grew nearly 20% to ₹912.5 Cr during the quarter under review from ₹760.5 Cr in Q1 FY26. Quarter-on-quarter (QoQ), the top line grew a mere 2.9% from ₹886.3 Cr in Q4 FY26.
The company attributed the improvement in profits to growing revenues, improving margins and strong demand in the healthcare and life sciences (HLS) and banking, financial services and insurance (BFSI) segments.
Including other income of ₹19.6 Cr, Fractal’s total income stood at ₹932.1 Cr during the quarter under review. In line with the top line, expenses also grew nearly 17% to ₹755.6 Cr in Q1 FY27 as against ₹699.6 Cr in the quarter ending June 2025.
In a press statement, Fractal said that its adjusted EBITDA rose 35% YoY during the quarter, without disclosing the figure. The company also noted that its adjusted EBITDA margins improved 189 bps YoY to 17%, while gross margins expanded 29 bps YoY to 46% during the quarter.
On the category front, the AI company claimed that its HLS vertical clocked 69% YoY growth in revenues in Q1 FY27, becoming its second largest industry portfolio. Meanwhile, BFSI revenue grew 36% YoY, while 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 22% YoY in Q1 FY27.
“Enterprises are putting real transformation budgets behind AI now and we’re seeing it directly in the size of the deals coming to us. TMT was the drag on our headline growth this quarter. Excluding TMT, our business grew 35% year on year, which is a better read on the underlying demand we’re seeing,” said Fractal cofounder, group CEO and executive vice-chairman Srikanth Velamakanni.
Giving a geographical breakdown, Fractal said that Americas accounted for the bulk 67.4% of its total revenue during the quarter, while Europe as well as APAC (Asia Pacific) and other regions contributed 21.4% and 11.2%, respectively.
In line with this, revenues from the Americas rose 24% YoY, while the top line from Europe and APAC and other regions jumped 25% and 2%, respectively.
The AI analytics company also said that its revenue per billable full-time equivalent (FTE) stood at $83,000 (₹75 Lakhs) during the quarter under review, up 3% 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 five from four in Q1 FY26, while $1 Mn+ sized clients grew to 58 in Q1 FY27 from 54 in the year ago quarter.
In a filing with the exchanges, Fractal also said it has revised the structure of the sale and transfer of its certain business units to its wholly-owned subsidiary Analytics Vidhya Educon Pvt Ltd (VEPL).
The board approved the change in ‘effective date’ of the business transfer agreement to May 1 from April 1 earlier, citing implementation and operational reasons. With this, the company has increased the transaction size of the slump-sale deal to ₹11.6 Cr from ₹10.9 Cr previously.
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.
Zooming Into Fractal’s Q1 Expenses
Employee Benefit Expenses: This was the biggest cost centre for the listed company, rising 14% to ₹ 631.9 Cr as against ₹554.1 Cr in Q1 FY26.
Other Expenses: Expenses under this bucket zoomed nearly 33.4% % to ₹126.5 Cr in Q1 FY27 compared to ₹94.8 Cr in the year-ago quarter.
ESOP Expenses: Fractal’s ESOP costs rose nearly 25.8% to ₹11.2 Cr during the period under review from ₹8.9 Cr a year ago.
Shares of Fractal closed today’s trading session 3.56% lower at ₹862.15 on the BSE.
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