Is Fractal Analytics IPO Good or Bad – Detailed Review

Fractal Analytics Limited’s IPO is set to open its initial public offering from February 09, 2026, to February 11, 2026. When considering applying for this IPO, potential investors might have questions about whether the Fractal Analytics IPO is a good investment and if it's worth subscribing to.

This article provides a comprehensive analysis of Fractal Analytics IPO, covering its business operations and fundamental analysis from its RHP to help you make an informed investment decision.

Fractal Analytics IPO Review

Fractal Analytics Limited's IPO is open for subscription from February 09, 2026, to February 11, 2026, with listing expected on February 16, 2026, on NSE and BSE.

The company is a globally recognized technology-driven enterprise artificial intelligence (AI) company with a strong growth trajectory that specializes in providing large global enterprises with a comprehensive suite of AI and data-driven decision solutions. It operates as a leading player in the rapidly expanding data, analytics, and AI (DAAI) ecosystem and is a top provider of end-to-end AI solutions for business transformation, serving 122 "Must Win Clients" as of September 30, 2025. Its core business focus is on providing specialized AI services to consumer packaged goods, retail, technology, media, and healthcare sectors, which form the backbone of its revenue from operations.

The platform serves an ecosystem of marquee Fortune 500 clients across a global network, including significant operations in the United States, Europe, and India as of September 30, 2025, leveraging a customer-first, technology-led, and scalable AI platform. The company identifies Srikanth Velamakanni, Pranay Agrawal, and others as its promoters; TPG Fett Holdings Pte. Ltd. is the largest external shareholder with a 25.49% stake pre-offer on a fully diluted basis.

The company operates within the global Data, Analytics, and AI (DAAI) Economy, which is undergoing rapid digital transformation driven by the mass adoption of Generative AI. The total addressable market (TAM) for DAAI services worldwide is estimated at approximately USD 143 billion as of FY25 and is projected to grow at a CAGR of 16.7% to reach USD 310 billion by FY30. This growth is structurally fueled by the proliferation of AI-led decision intelligence, where pure-play AI firms are capturing significant value as enterprises shift to specialized third-party partners.

Fractal Analytics’ financial performance from FY23 to FY25 reflects robust top-line growth and a successful return to profitability. Revenue from operations grew from Rs 1,985.40 crore in FY23 to Rs 2,765.40 crore in FY25, with a reported revenue of Rs 1,559.00 crore for H1 FY26.

Profit After Tax (PAT) demonstrated a strong turnaround, rising from a loss of Rs 54.7 crore in FY24 to a profit of Rs 220.6 crore in FY25, reporting a PAT of Rs 70.9 crore for H1 FY26. Operating efficiency improved as the EBITDA margin recovered to 14.4% in FY25. The Return on Equity (RoE) stood at 12.6% in FY25, while the Net Revenue Retention (NRR) remained high at 121.3%, highlighting strong client stickiness.

Key strengths include being a Leading Pure-Play Enterprise AI Company, Deep Technical and Behavioral Expertise (AED), a Marquee Global Client Base with long-standing relationships, and an Innovation-Driven Platform Strategy (Cogentiq). Risks involve High Client and Sector Concentration (top 10 clients contribute 54.2% of segment revenue), a History of Periodic Losses, Foreign Exchange Risks (92.4% revenue from outside India), and Intense Competition from global IT giants like Accenture.

The IPO consists of a total book-built issue worth Rs 2,834 crore, comprising an Offer for Sale (OFS) of Rs 1,810 crore and a Fresh Issue of Rs 1,023 crore. The proceeds from the fresh issue will be used for repayment of borrowings for its subsidiary Fractal USA, funding technology infrastructure (laptops) and new office premises in India, and investing in R&D and marketing under the Fractal Alpha segment.

Shares are priced in the band of Rs 857 to Rs 900 per share, with a lot size of 16 Shares.

Company Overview of Fractal Analytics IPO

Fractal Analytics Limited is a globally recognized technology-driven enterprise artificial intelligence (AI) company with a strong growth trajectory that specialises in providing large global enterprises with a comprehensive suite of AI and data-driven decision solutions. The company operates as a leading player in the rapidly expanding data, analytics, and AI (DAAI) ecosystem and is a top provider of end-to-end AI solutions to drive business transformation, serving 122 "Must Win Clients" as of September 30, 2025.

Its core business focus is on providing credit to consumer packaged goods, retail, technology, media, and healthcare sectors, which form the backbone of its revenue from operations.

The diversified product portfolio includes specialized AI products primarily hosted on its flagship platform:

• Cogentiq: An agentic AI platform designed to help enterprises accelerate business transformation through pre-built agents and tools.

• Kalaido.ai: A proprietary diffusion-based text-to-image foundation model.

• Vaidya.ai: A medical multi-modal foundation model ecosystem for healthcare assistance.

• Trial Run: An AI-enabled experimentation platform for retail and CPG business decisions.

The platform serves an ecosystem of marquee Fortune 500 clients across a global network, including significant operations in the United States, Europe, and India as of September 30, 2025.

The core operational strength is built around a customer-first, technology-led, and scalable AI platform with a commitment to operational excellence. This strength is demonstrated by its deep AI, engineering, and design (AED) capabilities, resulting in proprietary foundation models and a "decision-backwards" approach to problem-solving.

Furthermore, the company has successfully expanded its presence across multiple countries, maintaining a near-constant focus on high-touch engagement through its industry practice teams. As of September 30, 2025, the company has achieved significant scale with Rs 1,559 crore in half-yearly revenue from operations.

The table below provides the industry-wise revenue segmentation for the Fractal.ai segment as of September 30, 2025:

The company identifies Srikanth Velamakanni, Pranay Agrawal, Chetana Kumar, Narendra Kumar Agrawal, and Rupa Krishnan Agrawal as its promoters. TPG Fett Holdings Pte. Ltd. is the largest external shareholder with a 25.49% stake pre-offer on a fully diluted basis. Key leadership includes Srikanth Velamakanni (Whole-time Director and Group CEO), Pranay Agrawal (Non-executive Director and CEO of Fractal USA), and Ashwath Bhat (Chief Financial Officer).

Industry Overview of Fractal Analytics IPO

Fractal Analytics Limited operates within the global Data, Analytics, and AI (DAAI) Economy, a technology sector undergoing rapid digital and formal transformation, primarily driven by mass adoption of Generative AI, favourable digital infrastructure, and the proliferation of AI-led decision intelligence to global enterprises.

The total addressable market (TAM) for DAAI services worldwide is estimated to be approximately USD 143 billion as of FY25. Within this, the market is expected to grow at a Compound Annual Growth Rate (CAGR) of 16.7% to reach USD 310 billion by FY30. This strong trajectory is projected to continue, with the core AI-led services market expected to reach USD 172 billion by Fiscal 2030.

The accelerated adoption of Generative AI, with 83% of surveyed enterprises either testing or producing Gen AI use cases in FY25, significantly shifts the focus toward productized AI solutions.

Crucially, the segment remains a high-growth market, with pure-play AI firms capturing significant value as enterprises shift from in-house setups to specialized third-party partners. This indicates massive untapped potential for specialized underwriting of AI risks, cluster-based data assessment, and sophisticated agentic AI solutions.

Within this intensely competitive and regulated environment, the industry is navigating challenges such as the potential impact of high talent acquisition costs, vulnerability to cybersecurity threats and data privacy leaks, and adapting to evolving global AI regulations such as the EU AI Act and the Indian Digital Personal Data Protection Act.

Financial Overview of Fractal Analytics IPO

The revenue from operations has shown robust growth, driven by expansion across its AI ecosystem. Revenue increased from Rs 1,985.4 crore in FY23 to Rs 2,196.3 crore in FY24 and accelerated significantly to Rs 2,765.4 crore in FY25, achieving a healthy growth momentum. This continued into the latest half-year, with revenue reaching Rs 1,559 crore for the six months ending September 30, 2025.

In the EBITDA margin part, core business efficiency is seen through optimized operations derived from leveraging its scalable Cogentiq platform. The EBITDA margin stood at 22.0% in FY23, dipped to 4.4% in FY24, and recovered significantly to 14.4% in FY25. For the latest six-month period ending September 30, 2025, the company reported an EBITDA margin of 11.9%, reflecting improved stability compared to the 10.1% margin in the same period of the previous year.

Profit After Tax (PAT) has demonstrated a significant turnaround, reflecting the company's successful transition to a profitable scale-up in the latest full fiscal. PAT stood at Rs 194.4 crore in FY23, dipped to a loss of Rs 54.7 crore in FY24 which was primarily due to share of loss of associate and one-time items, and reached Rs 220.6 crore in FY25. For the latest six-month period ending September 30, 2025, the company reported a PAT of Rs 70.9 crore.

The PAT Margin highlights the company's bottom-line efficiency. The margin was healthy at 9.8% in FY23, turning negative at 2.5% in FY24 due to one-time factors and associate performance, before rebounding to 8.0% in FY25. For the six months ending September 30, 2025, the PAT margin stood at 4.5%, reflecting consistent operations despite ongoing investments in new product segments.

The Return on Equity (RoE) tracks the profitability relative to the shareholders' equity. The RoE showed recovery, moving from 14.5% in FY23 to 12.6% in FY25 after a dip in FY24. This trajectory correlates with the return to profitability and efficient capital utilization as the company expands its global AI services footprint.

The Net Revenue Retention (NRR) highlights the effectiveness of the company's client expansion strategy. The NRR remained strong at 121.3% in FY25, though it shifted to 114.0% as of September 30, 2025. According to the Fractal Analytics IPO details, the company's ability to maintain an NRR above 110% across the last three years demonstrates high client stickiness and successful upselling within its "Must Win Clients" ecosystem ahead of the Fractal Analytics ipo date.

Strengths and Risks of Fractal Analytics IPO

Let's examine the strengths and weaknesses to determine if the Fractal Analytics IPO is a good or bad investment for investors.

Strengths

• Leading Pure-Play Enterprise AI Company: Fractal Analytics is recognized as India’s leading pure-play enterprise AI firm. As of September 30, 2025, it served over 100 Fortune 500 companies with a revenue from operations of Rs 1,559.0 crore for the half-year, focusing on a premium global target segment.

• Deep Technical and Behavioral Expertise: The company has integrated AI, engineering, and design (AED) with behavioral science. This unique methodology leverages its "Behavior Architecture" and "Ethnolab" to ensure that AI solutions are not only technically sound but also adopted by end-users in large enterprises.

• Marquee Global Client Base with High Retention: Fractal Analytics maintains long-standing relationships with global giants like Mars, Google, and Philips. As of September 30, 2025, its top 10 clients have been with the firm for an average of over eight years, reflecting strong client stickiness and a repeat revenue model.

• Innovation-Driven Platform Strategy: The core business model is transitioning toward a platform-led approach. Its flagship Agentic AI platform, Cogentiq, and proprietary models like Vaidya.ai and Kalaido.ai demonstrate its ability to productize AI research. This is evidenced by a patent portfolio consisting of 28 registered and 38 pending patents.

• Scalable and Diverse Talent Pool: The company has built a high-performance culture, recognized as a "Great Place to Work" for eight consecutive years in India. With 5,722 employees globally as of September 30, 2025, and established training through Analytics Vidhya, it maintains a robust supply chain for scarce AI talent.

Risks

• High Client and Sector Concentration: The company derived 54.2% of its Fractal.ai segment revenue from its top 10 clients in H1 FY26. Furthermore, its focus industries (CPGR, TMT, HLS, BFSI) account for 80% of the DAAI market, making it vulnerable to downturns in these specific sectors.

• History of Periodic Losses: Fractal Analytics reported a consolidated net loss of Rs 54.7 crore in Fiscal 2024. While it turned profitable in FY25, there is no assurance that it will maintain this profitability as it continues to invest heavily in R&D and global marketing.

• Foreign Exchange and Global Operational Risks: Since 92.4% of revenue is derived from outside India, primarily in USD, the company is highly exposed to currency fluctuations. Adverse movements in the INR-USD exchange rate could impact financial performance despite hedging strategies.

• Regulatory and Intellectual Property Risks: As an AI-first company, Fractal is subject to evolving global laws on data privacy and AI ethics. Failure to comply with regulations like GDPR or the EU AI Act, or failure to protect its proprietary AI algorithms, could lead to significant penalties and loss of competitive edge.

• Intense Competition from Global IT Giants: The company competes with highly capitalized global IT services firms like Accenture and niche AI startups. These competitors may have greater financial resources to attract talent and invest in similar proprietary AI platforms.

Strategies of Fractal Analytics IPO 

• Acquire and Grow Must Win Clients (MWCs): The company intends to focus on deepening relationships with its existing 122 MWCs. By expanding AI solutions across more business functions within these global giants, Fractal aims to drive higher net revenue retention beyond the current 114.0%.

• Scale Agentic AI via the Cogentiq Platform: A key pillar of the growth strategy is to scale the product-led revenue by porting existing AI products onto the Cogentiq platform. This aims to provide enterprises with more autonomous, interoperable AI agents, enhancing high-margin recurring revenue.

• Accelerate Innovation through Fractal Alpha: Fractal plans to continue using its "Alpha" segment as an incubator for independent AI businesses. By identifying scalable ideas and spinning them off, the company seeks to capture whitespace opportunities in specialized markets like healthcare and image generation.

• Strategic Inorganic Growth through Acquisitions: The company aims to selectively pursue acquisitions to enhance its technical and functional capabilities. A portion of the IPO proceeds is earmarked for unidentified acquisitions that can complement its existing tech stack or geographic reach.

• Deepen Technology Partnerships with Hyperscalers: Fractal Analytics intends to strengthen its alliances with cloud giants like Google Cloud and platform providers like Databricks. This strategy is aimed at leveraging partner ecosystems for lead generation and delivering end-to-end AI transformations at speed.

Fractal Analytics IPO vs. Peers

Currently, there are no listed Indian companies available for direct peer comparison on the stock exchanges. However, the company operates in a competitive landscape alongside players such as C3.ai, Palantir, Accenture, Coforge, Globant, Latent View Analytics, Happiest Minds, and Persistent Systems. These firms offer similar data, analytics, and AI technology solutions and cater to overlapping market segments.

Objectives of Fractal Analytics IPO

The offering consists of a total book-built issue worth up to Rs 2,834 crore, out of which the fresh issue is valued at up to Rs 1,023 crore and the offer for sale is valued at up to Rs 1,810 crore, respectively. The selling shareholders in this IPO include:

Quinag Bidco Ltd (Apax), TPG Fett Holdings Pte. Ltd., the GLM Family Trust, and individuals Satya Kumari Remala and Rao Venkateswara Remala, who will receive the offer-for-sale proceeds.

However, the Rs 1,023 crore fresh issue proceeds will be used for:

• Repayment of Borrowings: Rs 264.9 crore for its subsidiary, Fractal USA.

• Technology & Infrastructure: Rs 57.1 crore for laptops and Rs 121.1 crore for new office premises in India.

• R&D and Marketing: Rs 355.1 crore for investments in the Fractal Alpha segment.

• Inorganic Growth & Corporate Purposes: The balance for strategic initiatives and general corporate needs.

Fractal Analytics IPO Detailsalpha

IPO Dates

Fractal Analytics IPO will be open for subscription from February 09, 2026, to February 11, 2026. The allotment of shares to investors will take place on February 12, 2026, and the company is expected to be listed on the NSE and BSE on February 16, 2026.

IPO Issue Price

Fractal Analytics is offering its shares in the price band of Rs 857 to Rs 900 per share. This means you would require an investment of Rs. 14,400 per lot (16 shares) if you are bidding for the IPO at the upper price band.

IPO Size

Fractal Analytics is offering a total of 3,14,87,777 shares amounting to Rs 2,834 crore. This includes an offer for sale of 2,01,15,555 shares worth Rs 1,810 crore, the proceeds of which will go to the selling shareholders, while the remaining 1,13,72,222 shares constitute a fresh issue valued at Rs 1,023 crore, to be utilised in line with the company’s stated objectives.

IPO Allotment Status

Investors who applied for the IPO can check their IPO allotment status on February 12, 2026, through the registrar's website, MUFG Intime India Private Limited, BSE, NSE, or through the stockbroker platform.

IPO Listing Date

The shares of Fractal Analytics are expected to be listed on the NSE and BSE on February 16, 2026.

IPO Application Link

Open demat account with Rupeezy today and enjoy a seamless experience when applying for the IPO. With an easy-to-use platform, Rupeezy makes the IPO application process quick and hassle-free.

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