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Newly Listed Fractal Crosses INR 1,001 m Net Income in Q3

(Moderate)
(Positive)
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Fractal (NSE:FRACTAL) reported Q3 FY2026 consolidated revenue of INR 8,544 m, up 21% YoY, with Adjusted EBITDA INR 1,521 m (+24% YoY) and Profit after Tax of INR 1,001 m for quarter ended Dec 31, 2025.

Gross margin improved to 47.2%; Healthcare & Life Sciences grew 78% YoY and Banking grew 26% YoY. Net Revenue Retention was 114% and NPS was 77. Product benchmarks included Vaidya.ai 2.0 and PiEvolve outperforming peer models on public AI tests.

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Positive

  • Revenue +21% YoY to INR 8,544 m
  • Adjusted EBITDA +24% YoY to INR 1,521 m
  • Profit after Tax INR 1,001 m
  • Gross margin 47.2% (up 0.2% YoY)
  • Net Revenue Retention 114% and NPS 77
  • Healthcare segment +78% YoY (20% of revenue)

Negative

  • Gross margin expansion only 0.2ppt, modest improvement
  • Banking segment 12% of revenue, growth may be concentrated
  • Client concentration risk: only 6 clients >$20m and 58 >$1m

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  • Revenue Grows 21%, Adjusted EBITDA Grows Even Faster at 24% YoY
  • Improves Gross Margin to 47.2%, considered Best in Class

NEW YORK, March 5, 2026 /PRNewswire/ -- Fractal Analytics Ltd (BSE: 544700) (NSE: FRACTAL) announced its consolidated financial results for Q3 FY 2026, ending December 31, 2025.

In Q3 FY26, the Company reported consolidated revenue of INR 8,544 m, a growth of 21% year on year (YoY). Growth was led by strong demand in the Healthcare and Life Sciences segment (20% of revenue) which grew 78% YoY and the Banking and Financial Services segment (12% of revenue) which grew 26% YoY.

Fractal further expanded its relationships with existing clients resulting in a Net Revenue Retention* of 114% in Q3 FY26. Fractal's Net Promoter Score (NPS) during the period stood at 77.

The number of clients who generate revenues upwards of $20 million increased by 2 YoY to 6 clients. The number of clients who generate more than $1 million went by 8 YoY to 58 clients.

The company reported a Gross Margin of 47.2%, an expansion of 0.2% YoY. Adjusted EBITDA outperformed revenue growth, clocking 24% growth YoY to INR 1,521 m. Adjusted EBITDA margin was at 17.8%, an expansion of 0.4% YoY. Profit after Tax was INR 1,001 m.

 

Fractal Products beating Global Benchmarks

The company's consumer-targeted AI-based health assistant, Vaidya.ai 2.0, became the first AI model to achieve a 50+ score on OpenAI's HealthBench (Hard), on the toughest healthcare benchmarks that measure advanced clinical reasoning across complex diagnostic scenarios, outperforming ChatGPT-5, GPT-5.2 and Gemini Pro 3.

PiEvolve, an evolutionary agentic engine designed for autonomous machine learning and scientific discovery, was ranked among the top-performing agents on OpenAI's MLE-Bench, outperforming agents from leading AI research labs, including Google, Microsoft and Meta.

 

Commenting on the performance, Srikanth Velamakanni, Group CEO and Executive Vice-Chairman said: " We delivered a great quarter, improving across nearly every metric. Our best-in-class organic growth, gross margins, and high client retention reflect the strength of our enterprise AI capabilities and the trust our clients place in us.

We have built a disciplined, high-performance organization focused on solving complex enterprise problems with AI. As adoption scales across industries, Fractal is well positioned to lead this transformation while creating sustained long-term value for our clients and shareholders."

 

For more information, please visit the Investor Relations section of our website at https://fractal.ai/investor-relations

 

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® companies to embed AI into critical business decisions across growth, supply chains, pricing, and customer experience.

Committed to sustained innovation, Fractal invests more than 5% 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 27.6 billion for the fiscal year ended March 31, 2025, representing a 30% CAGR over the past decade. 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.

*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, crosssells and contractions

Cision View original content:https://www.prnewswire.com/news-releases/newly-listed-fractal-crosses-inr-1-001-m-net-income-in-q3--302705722.html

SOURCE Fractal Analytics Limited

FAQ

What were Fractal's Q3 FY2026 revenue and profit figures (FRACTAL)?

Fractal reported consolidated revenue of INR 8,544 m and Profit after Tax of INR 1,001 m. According to the company, revenue grew 21% YoY and PAT reflects quarterly profitability for the period ended December 31, 2025.

How did Fractal's margins and EBITDA perform in Q3 FY2026 (FRACTAL)?

Adjusted EBITDA rose to INR 1,521 m, a 24% YoY increase, with an EBITDA margin of 17.8%. According to the company, gross margin expanded to 47.2%, a 0.2 percentage-point improvement versus prior year.

Which segments drove Fractal's growth in Q3 FY2026 for FRACTAL?

Growth was led by Healthcare & Life Sciences and Banking sectors; Healthcare grew 78% YoY. According to the company, Healthcare represented 20% of revenue while Banking represented 12%, both contributing materially to the 21% revenue increase.

What client metrics did Fractal report in Q3 FY2026 (FRACTAL)?

Fractal reported a Net Revenue Retention of 114% and an NPS of 77. According to the company, clients generating >$20m rose to six and those >$1m rose to 58, indicating strong client expansion and retention.

Did Fractal report any product benchmark achievements in Q3 FY2026 (FRACTAL)?

Yes; Vaidya.ai 2.0 scored 50+ on OpenAI's HealthBench (Hard) and PiEvolve ranked among top agents on MLE-Bench. According to the company, both products outperformed leading models and agents on public AI benchmarks.

How should investors view Fractal's Q3 FY2026 performance (FRACTAL)?

The quarter shows strong revenue and EBITDA growth with high client retention, but modest margin expansion. According to the company, the results reflect scalable enterprise AI adoption and continued focus on client-driven growth and product benchmarking.