Fractal Reports Profit Growth of 109% for Q4

• Q4 Revenue up 17%; Gross Margin at a Best-In Class 48.2%
• Full Year Revenue Growth of 19%; Profit Growth of 30%

NEW YORK, May 12, 2026 /PRNewswire/ -- Fractal Analytics Ltd (BSE: 544700) (NSE: FRACTAL) announced its consolidated financial results for the quarter and year ending March 31, 2026.

In Q4 FY26, the Company reported consolidated revenue of INR 8,863 m, a growth of 17% year on year (YoY).

Growth was led by a strong performance in the Healthcare and Life Sciences (HLS) segment which grew 82% YoY and the Banking, Financial Services, and Insurance (BFSI) segment which grew 42% YoY. The Consumer-Packaged Goods and Retail (CPGR) segment grew at 11% YoY, while the Telecom, Media and Technology (TMT) segment declined 19% YoY due to client-specific issues.

Fractal further expanded its relationships with existing clients resulting in a Net Revenue Retention³ (NRR) of 112% in Q4 FY26. During the period, Fractal had an industry-leading Net Promoter Score (NPS) of 81.

Fractal's Gross Margin in Q4 was 48.2%, an expansion of 47 bps⁴ YoY. Adjusted EBITDA Margin expanded by 189 bps to 22%. Net Income grew 109% YoY to INR 1,158 m.

FY 2026 Performance

For the full year, Fractal reported revenue of INR 32,997 m, growing 19% YoY.

The company's HLS segment led with 66% growth, followed by the BFSI segment with 32% growth, and CPGR with 12% growth. TMT declined by 1%.

Fractal's Europe revenues grew 34% YoY while revenues from Americas grew 20%. Revenue from APAC declined by 3%.

The company reported an increase in $20 million plus client relationships from 5 clients in the prior year to 6 in FY 2026. One million plus sized client relationships grew from 53 to 59 during the same period.

Fractal's Gross Margin expanded by 93 bps to 47%, Adjust EBITDA Margin expanded 18 bps while the Net Income Margin expanded 72 bps to 8.7%. The company's Net Income was INR 2,868 m, up 30% over the prior year.

Commenting on the performance, Srikanth Velamakanni, Group CEO said: "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."

³ Net Revenue Retention in our Fractal.ai segment measures how effectively we retain and expand revenue from our existing clients over a defined period and is calculated by comparing the current period's revenue from the clients who existed at the start of the period, with their revenue in the previous period - including the effects of upsells, cross-sells and contractions

⁴ Basis points = 1/100th of 1%

About Fractal

Fractal is a publicly listed global enterprise AI company with a vision to power every human decision in the enterprise. With a workforce of over 5,000 professionals across North America, EMEA, and Asia-Pacific, Fractal partners with Fortune 500®-sized companies to embed AI into critical business decisions across growth, supply chains, pricing, and customer experience.

Committed to sustained innovation, Fractal invests more than 6% of its annual revenue in AI research and development, supporting foundational AI research, product development, and IP creation that address both immediate client needs and long-term technological advancement.

The company reported consolidated revenue of INR 32,997 m for the fiscal year ended March 31, 2026. Following a successful IPO in February 2026, Fractal is listed on the BSE and NSE in India.

For more information, go to www.fractal.ai.

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SOURCE Fractal Analytics Limited