Fractal reports 20% revenue growth in Q2 FY27

Fractal Analytics Limited announced its financial results for the quarter and six months ended September 30, 2026. The company reported a 20% year-over-year increase in revenue for both Q2 FY27 and H1 FY27. Net income saw a substantial rise of 139% in Q2 FY27 and 114% in H1 FY27, indicating strong operational leverage and profitability improvements.

Fractal Analytics Reports Strong Financial Performance for Q2 and H1 FY27

Fractal Analytics Limited has unveiled its unaudited financial results for the second quarter and the first half of the fiscal year ending September 30, 2026. The company demonstrated robust growth, highlighted by a significant increase in revenue and net income.

Q2 FY27 Financial Highlights

For the second quarter of FY27, Fractal Group’s revenue from operations reached INR 9,565 million, marking a 20% year-over-year growth. The Net Income for the quarter stood at INR 792 million, an impressive surge of 139% compared to the same period last year. The Net Income Margin improved to 8.3% from 4.2% in Q2 FY26.

H1 FY27 Financial Performance

In the first half of FY27, the company’s revenue from operations amounted to INR 18,690 million, also reflecting a 20% year-over-year increase. Net Income for H1 FY27 reached INR 1,515 million, growing by 114% year-over-year. The Net Income Margin for the half-year stood at 8.1%.

Profitability and Other Key Metrics

Profitability metrics also showed positive trends. The Adjusted EBITDA margin for Q2 FY27 was 16.2%, up 123 bps YoY, and for H1 FY27, it was 16.5%, up 155 bps YoY. Gross Margin for Q2 FY27 was 44.0% and for H1 FY27 was 44.8%.

Client Growth and Engagement

The company highlighted a Net Revenue Retention (NRR) of 115% for Q2 FY27 in its Fractal.ai segment, indicating strong client expansion. The number of clients with over $1m in annual revenue increased to 58 in TTM Sep-26 from 52 in TTM Sep-25. Similarly, clients contributing over $5m, $10m, and $20m in annual revenue also saw an increase.

Industry and Geography Performance

Revenue breakdown by industry shows CPGR leading at 34.7%, followed by HLS at 25.1% for Q2’27. Geographically, the Americas contributed the largest share at 67.3% in Q2’27, with a YoY growth of 22%. Europe followed with 21.5% revenue share and 20% YoY growth.

Fractal Products and Partnerships

The Fractal Products segment reported revenue from operations of INR 383 million in Q2’27, up 39% YoY. The company also emphasized its strategic partnerships with leading technology firms like OpenAI, Google Cloud, AWS, and Microsoft, contributing to its momentum in driving enterprise AI adoption.

ESG Focus

Fractal’s ESG focus includes aiming for net-zero emissions by 2040, maintaining strong IT systems, and adhering to global privacy laws. The company has also been recognized as a Great Place to Work for multiple years.

Source: BSE

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