Fractal Q2 results: Net income jumps 139% to ₹79.2 crore as revenue crosses $100 million
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Fractal Analytics reported a 20% year-on-year (YoY) increase in consolidated operating revenue to ₹956.5 crore in Q2 FY27, marking its first-ever quarter with revenue crossing $100 million. The enterprise AI company also reported a 139% jump in net income to ₹79.2 crore, while adjusted EBITDA margin expanded by 123 basis points (bps) YoY to 16%. Adjusted EBITDA grew 71% on a YoY basis.
For the quarter ended September 30, 2026, revenue grew 10% in constant currency terms. Growth was led by the healthcare and life sciences (HLS) business, which reported a 79% YoY increase. Banking, financial services and insurance (BFSI) also recorded strong growth of 30% during the quarter, continuing a trend seen over the past several quarters.
Consumer packaged goods and retail (CPGR), Fractal’s largest industry vertical, grew 11% YoY. Meanwhile, the technology, media and telecom (TMT) segment reported a sequential recovery, with revenue increasing 6% quarter-on-quarter (QoQ).
The company’s products, including its Cogentiq agentic AI platform, recorded an annual revenue run-rate of more than ₹150 crore, marking a 39% YoY increase.
Fractal’s customer spending and AI business continue to grow
Fractal also reported a net revenue retention (NRR) of 115% in Q2, indicating that existing clients collectively increased their spending with the company. Its Net Promoter Score (NPS), which measures customer satisfaction and willingness to recommend a company, stood at 76 during the quarter.
Commenting on the results, Srikanth Velamakanni, Co-founder and Group CEO of Fractal, said, “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.”
Fractal builds AI models, platforms and products for enterprise clients, including Fortune 500 organisations. The company operates across three pillars: AIT, which focuses on rebuilding business workflows and decisions with AI; AIF, which builds the data and knowledge layer for enterprise AI; and AIW, which helps organisations redesign work and develop AI-ready talent. All three are powered by Cogentiq, its flagship agentic AI platform.
The company has more than 6,000 professionals across North America, Europe, the Middle East and Africa (EMEA), and Asia-Pacific. It also invests more than 6% of its revenue in AI research and development. Its research team develops proprietary models, including the Fathom reasoning models.
Fractal was selected under the IndiaAI Mission to build a large reasoning model for India. Its portfolio also includes Vaidya.ai, whose Vaidya 2.0 model was the first to score above 50 on OpenAI’s HealthBench (hard), and PiEvolve. It had also incubated and spun out Qure.ai, a healthcare AI company focused on tuberculosis, lung cancer and stroke detection and management.
Other businesses include Asper.ai, a revenue growth management product for consumer-packaged goods companies, and Analytics Vidhya, an ed-tech platform.