News ArticleFractal Analytics Achieves 20% Revenue Growth and 139% Net Income Increase in Q2 FY27 Reaching $100M+ Revenue Quarter
Strong client retention with 115% net revenue retention and 16% adjusted EBITDA margin highlight performance in the quarter ended September 30, 2026
Fractal Analytics announced strong Q2 FY27 financial results, reporting a 20% year-on-year revenue increase to INR 9,565 million and a 139% rise in net income to INR 792 million. The company achieved its first-ever $100 million+ revenue quarter, driven by robust client expansion across industries and regions, with a net revenue retention of 115% and improving profitability margins.
Fractal Analytics Limited
Investor Presentation
Fractal Analytics Limited reported a 20% increase in revenue to INR 9,565 million and a 139% increase in net income to INR 792 million for the quarter ended September 30, 2026, marking its first-ever quarter with over $100 million in revenue.
The company's net revenue retention stood at 115%, indicating strong expansion within existing clients, while industry-leading client satisfaction is reflected in a net promoter score of 76 for its Fractal.ai segment.
Adjusted EBITDA margin improved by 123 basis points to 16%, driven by operating leverage despite a short-term gross margin decline due to investments in AI engineering talent.
Revenue growth was broad-based across most industries, with healthcare and life sciences rising 79% year-on-year and banking, financial services, and insurance increasing by 30%. The Americas region contributed 67.3% of revenue, followed by Europe at 21.5%.
Operational highlights include expansion of client base with 68 clients contributing over $1 million in trailing twelve months revenue, up from 47 the previous year.
Cash and cash equivalents increased to INR 17,277 million, including IPO proceeds of INR 6,078 million net of expenses, supporting ongoing investments and growth initiatives.
Highlights
- Revenue increased 20% year-on-year to INR 9,565 million in Q2 FY27.
- Net income rose 139% year-on-year to INR 792 million.
- Fractal Group achieved its first quarter with over $100 million in revenue.
- Net revenue retention in the Fractal.ai segment was 115%, demonstrating client expansion.
- Adjusted EBITDA margin expanded by 123 basis points to 16%.
- Net promoter score for Fractal.ai segment remained high at 76 in Q2 FY27.
Key Data Snapshot
What happened
- Fractal Analytics reported unaudited financial results for the quarter and six months ended September 30, 2026.
- The company delivered 20% year-over-year revenue growth and a 139% increase in net income for Q2 FY27.
- Q2 FY27 marked the group's first-ever quarter exceeding $100 million in revenue.
Financial performance
- Revenue increased to INR 9,565 million in Q2 FY27 from the prior year period, driven by organic growth across sectors and geographies.
- Net income rose sharply to INR 792 million, reflecting improved operating performance and margins.
- Adjusted EBITDA margin expanded by 123 basis points to 16%, supported by operating leverage.
- Gross margin declined by 225 basis points year-over-year due to investment in AI engineering talent.
- Net revenue retention in the Fractal.ai segment was 115%, indicating strong client expansion.
Operational performance
- Client base expanded with 68 clients generating over $1 million in trailing twelve months revenue, up from 47 a year ago.
- Revenue growth was led by healthcare and life sciences (79% YoY) and banking, financial services, and insurance (30% YoY).
- Regionally, Americas contributed 67.3% of revenue, Europe 21.5%, and APAC and others 11.2%.
- Net promoter score of 76 demonstrates high client satisfaction and advocacy.
Business impact
- The company continued to invest in AI R&D, dedicating 6% of revenue towards AI-related research and development.
- Cash and cash equivalents amounted to INR 17,277 million, boosted by IPO proceeds of INR 6,078 million net of expenses.
- Adjusted segment results for Fractal Alpha showed 40% revenue growth year-on-year, reflecting integration of teams and focus on enterprise clients.
- The company is focusing on scaling client relationships with significant headroom for further growth.
Regulatory and governance context
- Financial results were disclosed pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
- The investor presentation and financial results were made public on November 4, 2026, including a scheduled conference call.
Highlights
- Revenue increased 20% year-on-year to INR 9,565 million in Q2 FY27.
- Net income rose 139% year-on-year to INR 792 million.
- Fractal Group achieved its first quarter with over $100 million in revenue.
- Net revenue retention in the Fractal.ai segment was 115%, demonstrating client expansion.
- Adjusted EBITDA margin expanded by 123 basis points to 16%.
- Net promoter score for Fractal.ai segment remained high at 76 in Q2 FY27.
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Source Information
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