Fractal Analytics Reports 20% Revenue Growth and 92% Net Income Growth in Q1 FY27
AI firm Fractal Analytics announced its first-quarter financial results, showing a 20% year-on-year increase in revenue and a 92% surge in net income.
New York, NY – July 24, 2026 – Fractal Analytics Ltd, a pure-play enterprise AI company, has reported its consolidated financial results for the first quarter of fiscal year 2027, ending June 30, 2026. The company achieved consolidated operating revenue of INR 9,125 million, marking a 20% year-on-year (YoY) increase.
The growth was significantly driven by the Healthcare and Life Sciences (HLS) sector, which saw a 69% YoY increase, becoming the company's second-largest industry vertical. The Banking, Financial Services, and Insurance (BFSI) sector also performed strongly with 36% YoY growth. The Consumer Packaged Goods and Retail (CPGR) segment continued its positive momentum with 19% YoY growth, while the Technology, Media, and Telecommunications (TMT) sector experienced a 22% YoY decline.
Fractal's focus on deepening client relationships contributed to a Net Revenue Retention rate of 117% for the quarter. The company also reported improved profitability, with Gross Margin reaching 46% and Adjusted EBITDA Margin expanding by 189 basis points to 17%. Net Income grew substantially by 92% YoY to INR 723 million.
"Enterprises are putting real transformation budgets behind AI now and we're seeing it directly in the size of the deals coming to us," said Srikanth Velamakanni, Group CEO and Executive Vice-Chairman. He noted that the TMT sector was a drag on overall growth, and that excluding this segment, the business grew 35% YoY, reflecting underlying demand. Velamakanni also highlighted the company's investments in people, research, and intellectual property to serve clients navigating increasing data sovereignty concerns and evolving AI models.