Fractal Analytics Q4 EBITDA Rises to Rs 1.80B; FY26 Revenue Up 19% to Rs 32,997 Million

Fractal Analytics Limited reported its audited consolidated and standalone financial results for the quarter and year ended March 31, 2026, as approved by its Board of Directors at a meeting held on May 11, 2026. Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company conducted its Q4 FY26 Earnings Call on May 12, 2026, and uploaded the audio recording on its website, accessible at https://fractal.ai/investor-relations/earnings-call-q4 . The presentation and related disclosures are hosted at https://fractal.ai/investor-relations . The statutory auditors, B S R & Co. LLP, issued an unmodified opinion on both the consolidated and standalone financial results, prepared in accordance with Indian Accounting Standards (Ind AS).

Consolidated Financial Performance

Fractal Analytics delivered strong consolidated revenue growth for the year ended March 31, 2026. Revenue from operations rose 19% year-on-year to Rs 32,997 million from Rs 27,654 million in the prior year. Total income, including other income of Rs 629 million, stood at Rs 33,626 million compared to Rs 28,162 million previously. Net income grew 30% YoY to Rs 2,868 million, while net income excluding associates grew 43% YoY to Rs 3,571 million. The following table summarises key consolidated income statement metrics:

Metric: Year ended Mar 31, 2026 Year ended Mar 31, 2025 Revenue from operations: Rs 32,997 million Rs 27,654 million Other income: Rs 629 million Rs 508 million Total income: Rs 33,626 million Rs 28,162 million Total expenses: Rs 29,746 million Rs 25,755 million Profit before tax: Rs 3,067 million Rs 2,380 million Profit after tax: Rs 2,868 million Rs 2,206 million Total comprehensive income: Rs 3,234 million Rs 2,156 million Basic EPS (Rs per share): Rs 18.20 Rs 14.49 Diluted EPS (Rs per share): Rs 17.19 Rs 13.36

For the quarter ended March 31, 2026, consolidated revenue from operations was Rs 8.86B versus Rs 7.57B in the corresponding prior-year quarter. Consolidated net profit for Q4 stood at Rs 1.18B, compared to Rs 548M in the year-ago period. Basic EPS for Q4 FY26 was Rs 7.07, up 100% YoY, while diluted EPS was Rs 6.73, up 106% YoY. Cash flow from operations for Q4 FY26 was Rs 3,010 million, up 8% YoY, and Rs 4,090 million for the full year, representing 70% of Adjusted EBITDA. Days of sales outstanding (DSO) improved to 72 days in FY26 from 74 days in FY25. Cash and cash equivalents as of FY26 end stood at Rs 20,520 million, including IPO proceeds of Rs 9,568 million.

Operational and Client Metrics

The investor presentation highlights several key operational indicators for FY26 and Q4 FY26. Net Revenue Retention (NRR) for the Fractal.ai segment, which measures revenue retention and expansion from existing clients, stood at 117% for FY26 and 112% for Q4 FY26, both calculated on an INR basis. The Net Promoter Score (NPS) for Fractal.ai was 81 in Q4 FY26, up 6 points YoY, and 78 for the full year FY26. Revenue per Billable FTE was USD 85K (Rs 7.5 million), up 5% YoY, calculated on a trailing twelve-month basis. Total employees stood at 5,868 as of March 31, 2026, and the company had 68 clients with USD 1 million or more in annual revenue. R&D investments as a percentage of revenue were 6.4% for FY26 (R&D opex: 4.1%), and 6.6% for Q4 FY26 (R&D opex: 4.2%), up 125 bps and 141 bps YoY respectively. The company held 59 patents granted and applications as of March 31, 2026.

Key profitability metrics for FY26 and Q4 FY26, including the latest EBITDA figures, are summarised below:

Metric: Q4 FY26 FY26 EBITDA: Rs 1.80B — EBITDA (Prior Year): Rs 1.28B (YoY) — EBITDA Margin: 20.33% — EBITDA Margin (Prior Year): 16.9% (YoY) — Gross Margin: 48% (▲47 bps YoY) 47% (▲93 bps YoY) Adjusted EBITDA Margin: 22% (▲189 bps YoY) 18% (▲18 bps YoY) Gross Margin Growth (YoY): +18% +22% Adjusted EBITDA Growth (YoY): +28% +21% Operating EBIT Growth (YoY): +53% +50%

Revenue by Industry and Geography

For FY26, Fractal.ai's revenue was diversified across industries, with Consumer, Packaged Goods & Retail (CPGR) contributing 37%, Technology, Media & Telecom (TMT) 25%, Healthcare & Life Sciences (HLS) 19%, Banking, Financial Services & Insurance (BFSI) 12%, and Others 7%. On a YoY basis, HLS grew 66%, BFSI grew 32%, CPGR grew 12%, and Others grew 30%, while TMT declined 1%. For Q4 FY26, HLS grew 82% YoY, BFSI grew 42%, CPGR grew 11%, and Others grew 33%, while TMT declined 19%.

Geographically, Americas accounted for 67.3% of FY26 revenue, Europe 19.9%, and APAC & Others 12.8%, with Americas growing 20% YoY, Europe growing 34% YoY, and APAC & Others declining 3% YoY. For Q4 FY26, Americas represented 68% of revenue (▲17% YoY), Europe 18% (▲24% YoY), and APAC & Others 13% (▲7% YoY). Revenue by geography is based on client billing location.

Segment Performance

The Group operates through two reportable segments — Fractal.ai and Fractal Alpha. Segment-wise revenue and results for the year ended March 31, 2026 are presented below:

Segment: Revenue FY26 Revenue FY25 Result FY26 Result FY25 Fractal.ai: Rs 32,190 million Rs 27,037 million Rs 5,409 million Rs 3,788 million Fractal Alpha: Rs 908 million Rs 644 million Rs (170) million Rs (283) million Intersegment elimination: Rs (101) million Rs (27) million — — Total: Rs 32,997 million Rs 27,654 million Rs 5,083 million Rs 3,499 million

The Fractal.ai segment remained the primary revenue and profit contributor, while the Fractal Alpha segment narrowed its losses from Rs 283 million in FY25 to Rs 170 million in FY26, reflecting consistent improvement in profitability.

Standalone Financial Performance

On a standalone basis, Fractal Analytics reported revenue from operations of Rs 18,662 million for the year ended March 31, 2026, compared to Rs 14,366 million in the prior year. Standalone profit after tax was Rs 1,865 million versus Rs 1,321 million previously. Key standalone metrics are summarised below:

Metric: Year ended Mar 31, 2026 Year ended Mar 31, 2025 Revenue from operations: Rs 18,662 million Rs 14,366 million Total income: Rs 19,293 million Rs 14,905 million Total expenses: Rs 16,520 million Rs 13,042 million Profit before tax: Rs 2,471 million Rs 1,765 million Profit after tax: Rs 1,865 million Rs 1,321 million Basic EPS (Rs per share): Rs 11.62 Rs 8.58 Diluted EPS (Rs per share): Rs 10.97 Rs 7.92

IPO Completion and Proceeds Utilisation

During the year, Fractal Analytics completed its Initial Public Offer (IPO) of 31,523,948 equity shares of face value of Rs 1 each at an issue price of Rs 900 per share, including a share premium of Rs 899 per share. A discount of Rs 85 per share was offered to eligible employees in the employee reservation portion of 383,008 equity shares. The issue comprised a fresh issue of 11,408,394 equity shares aggregating to Rs 10,235 million and an offer for sale of 20,115,554 equity shares by selling shareholders aggregating to Rs 18,104 million. The equity shares were listed on NSE and BSE on February 16, 2026. Subsequent to the year end, the Group repaid the full amount of borrowings outstanding as at March 31, 2026, retiring long-term debt completely using IPO proceeds.

The utilisation of IPO proceeds as at March 31, 2026 is as follows:

Object of Issue: Amount as per Prospectus (Rs million) Amount Utilised (Rs million) Amount Unutilised (Rs million) Repayment of borrowings of Fractal USA: 2,649 (26) 2,623 Purchase of laptops: 571 — 571 Setting-up new office premises in India: 1,211 — 1,211 R&D and sales & marketing under Fractal Alpha: 3,551 — 3,551 Inorganic growth and general corporate purposes: 1,611 — 1,611 Total: 9,593 (26) 9,567

During the year, the company also issued bonus shares in the ratio of 1:4 (for every one equity share, four bonus shares were issued) on July 29, 2025, and converted Compulsorily Convertible Preference Shares (CCPS) into 22,618,020 equity shares following Board approval on January 23, 2026.

Corporate Restructuring and Other Developments

The Board approved two key corporate restructuring actions at the May 11, 2026 meeting. First, Senseforth Inc., a wholly owned step-down subsidiary, is to be merged with Fractal Analytics Inc., a wholly owned material subsidiary, to simplify the corporate group structure, derive operational synergies, and achieve administrative and cost efficiencies. The shareholding pattern of Fractal Analytics Limited remains unchanged as the company is not a party to the merger. Second, Fractal Frontiers Inc., a wholly owned subsidiary of Senseforth AI Research Private Limited and a step-down subsidiary of the company, is to be liquidated as part of a broader initiative to streamline the legal entity structure and reduce duplicative compliance and administrative overheads, without any adverse impact on ongoing business operations.

Exceptional items for the year ended March 31, 2026 on a consolidated basis amounted to Rs (110) million, primarily comprising the statutory impact of new Labour Codes notified by the Government of India on November 21, 2025, which consolidate 29 existing labour laws. On a standalone basis, exceptional items for the year amounted to Rs (302) million. During the quarter ended March 31, 2026, the Group also recognised government grants of Rs 123 million from foreign governments related to employment conditions, accounted as a credit under employee benefit expenses. The Board approved the purchase of the balance stake of 44.08% in Analytics Vidhya Educon Private Limited for a consideration of Rs 487 million, making it a 100% subsidiary effective November 22, 2025.