Fractal Reports Significant Growth in Revenue and Profit in Q2 FY27
Fractal has exhibited a remarkable 20% year-on-year revenue growth, reaching Rs 956 crore in Q2 FY27. In addition, the company’s profit saw a substantial increase of 2.4 times, standing at Rs 79 crore for the quarter.
Revenue and Operational Highlights
The revenue generated from operations was Rs 956 crore in Q2 FY27, compared to Rs 798 crore during the same period last year, as disclosed in the company’s NSE filings. Established in 2000, Fractal derives income from analytics and consulting services, alongside licensing and subscription fees from its AI platforms such as Cogentiq, fflyfish.ai, and Kalaido.ai. Additionally, the firm generated Rs 29 crore from non-operating income, bringing the total income for the quarter to Rs 985 crore.
Expense Analysis
Employee benefit expenses represented the largest portion of Fractal’s total costs, making up over 76%. This expense rose by 4% year-on-year, totalling Rs 657 crore in Q2 FY27. Moreover, depreciation, finance costs, and other overheads contributed to an overall increase in total expenses of 15%, equating to Rs 859 crore for the quarter, up from Rs 747 crore in Q2 FY26.
Profitability Insights
Thanks to the revenue growth outpacing the increase in expenses, Fractal achieved a profit jump of 2.4 times, escalating to Rs 79 crore in Q2 FY27, compared to Rs 33 crore for the same quarter in the previous year. Sequentially, the profit has shown a 10% increase from Rs 72 crore in Q1 FY27.
IPO and Market Performance
Fractal went public in February of this year, raising funds through an IPO valued at Rs 2,834 crore, which included both a fresh issue and an offer for sale (OFS). This IPO facilitated exits for existing investors, such as Apax Partners and TPG Capital. Following its debut, the stock faced challenges, listing at a 3% discount to its issue price. Currently, Fractal’s shares are trading at Rs 808 each, resulting in a market capitalisation of approximately Rs 14,120 crore.
