Fractal Analytics Reports Multifold Jump in Q2 Net Profit to ₹79.2 Crore

Fractal Analytics posted a multifold increase in net profit to ₹79.2 crore for the quarter ending September, driven by growth across industry segments and reduced finance and employee costs. Quarterly revenue rose 20 per cent to ₹956.5 crore, supported by strong performance in the Healthcare and Life Sciences sector.

Fractal Analytics has reported a multifold jump in its net profit, reaching ₹79.2 crore for the quarter ending September. According to the company, the profit growth was driven by positive performance across various industry segments, alongside lower finance costs and employee expenses.

During the same period, the company's revenue recorded a 20 per cent increase to ₹956.5 crore. This top-line growth was led largely by the Healthcare and Life Sciences (HLS) industry, which clocked a 79 per cent growth annually. Other sectors also contributed to the performance, with Banking, Financial Services and Insurance (BFSI) growing by 30 per cent. Consumer Packaged Goods and Retail (CPGR), Fractal's largest industry vertical, grew 11 per cent, while the TMT sector saw a sequential recovery with 6 per cent growth.

On a sequential basis, the company's profit increased by 9.5 per cent, while revenue grew by 5 per cent. Fractal also reported that its gross margin grew by 46 per cent, and the Adjusted EBITDA Margin expanded by 123 basis points annually to reach 16 per cent.

Srikanth Velamakanni, Co-Founder and Group CEO, noted that quarterly revenue crossed $100 million and net income more than doubled. He attributed the results to a broader market shift, stating that AI models are becoming more capable and cost-effective, pushing companies to integrate advanced decision-making tools.

In addition to core analytics services, Fractal's product portfolio—including the Cogentiq agentic AI platform—reached an annual revenue run-rate of over ₹150 crore, marking a 39 per cent annual increase. Client metrics also showed positive trends, with the Net Revenue Retention standing at 115 per cent in the second quarter and a Net Promoter Score (NPS) of 76.

"Fractal Analytics' latest quarterly performance highlights a solid trajectory of scalable growth, crossing the $100 million quarterly revenue milestone while significantly expanding margins. The ability to simultaneously scale top-line revenue and improve profitability through optimized employee and finance costs demonstrates mature operational execution. Furthermore, the strong traction in their AI products and high net revenue retention reflect a healthy enterprise demand environment for advanced analytics and artificial intelligence solutions." — Dr. Shishir Gupta, Founder & CEO, StartupLanes