Indian AI firm Fractal Analytics posts Q3 revenue of $103.3m

Fractal Analytics, a newly listed enterprise AI firm, reported a consolidated profit after tax of 100.1 crore rupee (US$12.1 million) for the quarter ended December 31, 2025.

Its consolidated Q3 FY26 revenue was 854.4 crore rupee (US$103.3 million), up 21% year-on-year, following its IPO of 2,834 crore rupee (US$342.7 million) on February 16, 2026.

Revenue from healthcare and life sciences, about 20% of total, rose 78% year-on-year, while banking and financial services, roughly 12% of revenue, grew 26%, the company said.

Adjusted EBITDA was 152.1 crore rupee (US$18.4 million), up 24% year-on-year, with margins at 17.8% and gross margin at 47.2%, the company said.

Net revenue retention was 114%, and enterprise clients generating more than 170 crore rupee (US$18.6 million) annually rose to six, while those contributing over 8.5 crore rupee (US$0.93 million) rose to 58, Fractal said.

Srikanth Velamakanni, group chief executive and executive vice-chairman, said the firm saw strong growth as enterprise adoption of AI accelerated.

Fractal employs over 5,000 professionals. Its shares on the BSE closed at 758 rupee (US$8.3), down 3.7% from the previous session; results were announced after market hours.

🔗 Source: The Economic Times

🧠 Food for thought

Implications, context, and why it matters.

The firm’s muted IPO debut offers market context

Fractal’s shares on the BSE closed at Rs 758, down 3.7% from the prior session; results came after market hours.
That level sits well below its $2.4 billion private-market peak from a July 2025 secondary sale 1.
Ahead of the offering, the company cut the IPO size by over 40% from an initial plan of Rs 4,900 crore, adjusting to market mood 1.
Demand stayed soft. The IPO was subscribed 2.81 times, led by institutional buyers; the retail category reached 1.10 times 2.

Fractal’s IPO is a reality check for AI startups

As a newly listed enterprise AI firm, Fractal has become a test case for the country’s tech ecosystem 3.
The shift from private to public pricing suggests investors now check AI business models for results, such as quarterly profit and growth.
For the quarter ended December 31, 2025, Fractal posted consolidated profit after tax of Rs 100.1 crore. Q3 FY26 consolidated revenue reached Rs 854.4 crore, up 21% year on year, while adjusted EBITDA was Rs 152.1 crore, up 24% year on year.
For other AI unicorns, the takeaway is a clearer route to profitability alongside growth, if a public listing is the goal.