
Fractal Reports Strong Quarterly and Full Year Growth, Driven by AI Transformation
Mumbai | May 11, 2026: Fractal Analytics Ltd announced its consolidated financial results for the quarter and year ended March 31, 2026, reporting robust growth across key segments and operational areas.In the fourth quarter of fiscal year 2026 (Q4 FY26), the company posted consolidated revenue of INR 8,863 million, marking a 17% increase year on year (YoY). This strong performance was primarily fueled by the Healthcare and Life Sciences (HLS) segment, which saw 82% YoY growth, and the Banking, Financial Services, and Insurance (BFSI) segment, which grew by 42% YoY. The Consumer-Packaged Goods and Retail (CPGR) segment expanded at 11% YoY, while the Telecom, Media and Technology (TMT) segment declined 19% YoY due to client-specific issues.
Fractal also recorded an industry-leading Net Promoter Score (NPS) of 81 during the quarter, and successfully expanded its client relationships, resulting in a Net Revenue Retention (NRR) of 112% in Q4 FY26. The company's Gross Margin stood at 48.2% in Q4, an expansion of 47 basis points (bps) YoY. Net Income grew significantly by 109% YoY, reaching INR 1,158 million.
Full Year 2026 Performance Highlights
For the full fiscal year 2026, the company reported total revenue of INR 32,997 million, representing a 19% YoY growth.The segment performance for the full year was led by HLS, which reported 66% growth, followed by BFSI with 32% growth, and CPGR with 12% growth. The TMT segment recorded a decline of 1%. Geographically, Fractal saw strong growth from its European revenues, which grew 34% YoY, and revenues from the Americas, which grew 20%. Revenue from APAC declined by 3%.
The company’s financial metrics for FY 2026 showed the following expansion:
| Metric | FY 2026 Performance | Change Details |
|---|---|---|
| Consolidated Revenue | INR 32,997 million | 19% growth YoY |
| Net Income | INR 2,868 million | 30% growth over prior year |
| Gross Margin | 47% | Expanded by 93 bps |
| Net Income Margin | 8.7% | Expanded by 72 bps |
In terms of client relationships, the company reported an increase in $20 million plus client relationships from 5 clients in the prior year to 6 in FY 2026. Furthermore, the number of one million plus sized client relationships increased from 53 to 59 during the period.
Leadership Commentary
Commenting on the results, Srikanth Velamakanni, Group CEO, stated, "We wrapped up FY 2026 on a strong note, with robust revenue and profit growth while delivering AI-led transformation for our clients. AI is becoming more capable everyday: AI that can plan, reason, and act through complex enterprise work - and this frontier intelligence is becoming much more affordable to deploy. This, in no uncertain terms, means that enterprise AI is taking off. And it is exactly what Fractal was built for."About Fractal
Fractal is a publicly listed global enterprise AI company dedicated to powering every human decision in the enterprise. The company partners with Fortune 500 sized companies to embed AI into critical business decisions across growth, supply chains, pricing, and customer experience. With a workforce of over 5,000 professionals across North America, Fractal commits more than 6% of its annual revenue to AI research and development, supporting foundational AI research and product development. The company reported consolidated revenue of INR 32,997 million for the fiscal year ended March 31, 2026, and is listed on the BSE and NSE in India.FRACTAL Stock Price Movement
On Monday, Fractal Analytics Limited shares shed 0.64% of value, closing the day at ₹1059.80. The stock saw 661,400 shares traded during the session, indicating moderate liquidity across the period.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.