Synopsis: AI stock rose 6% after its Q4 results. Revenue increased 16.9% YoY to ₹886 crore from ₹758 crore, while net profit jumped 109% to ₹116 crore from ₹55.5 crore. The earnings per share (EPS) for the quarterly period stood at ₹6.85.
The shares of a Small-Cap company specialising in artificial intelligence, advanced analytics, and data engineering to drive decision-making for Fortune 500 companies, are in focus following their Q4 results.
With a market capitalization of Rs. 18,697.77 crores in the day’s trade, the shares of Fractal Analytics Ltd rose upto 5.77 percent, making a high of Rs. 1,119.60 per share compared to its previous closing price of Rs. 1,058.45 per share.
What happened
Fractal Analytics Ltd, engaged in artificial intelligence, advanced analytics, and data engineering to drive decision-making for Fortune 500 companies, is in the spotlight following its Q4 results as follows:
Its revenue from operations rose by 16.9 percent YoY from Rs. 758 Crores in Q4FY25 to Rs. 886 Crores in Q4FY26, and it rose by 3.7 percent QoQ from Rs. 854 Crores in Q3FY26 to Rs. 886 Crores in Q4FY26.
Its net profit rose by 109.0 percent YoY from Rs. 55.5 Crores in Q4FY25 to Rs. 116 Crores in Q4FY26, and it also rose by 16 percent QoQ from Rs. 100 Crores in Q3FY26 to Rs. 116 Crores in Q4FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 6.85, compared to Rs. 16.36 in the previous year’s quarter.
Other Updates
Fractal reported strong growth led primarily by its Healthcare and Life Sciences (HLS) segment, which grew 82% year-on-year, and the Banking, Financial Services, and Insurance (BFSI) segment, which grew 42%. The Consumer-Packaged Goods and Retail (CPGR) segment saw more modest growth of 11%, while the Telecom, Media and Technology (TMT) segment declined 19% due to client-specific issues.
The company also strengthened existing client relationships, achieving a Net Revenue Retention (NRR) of 112% in Q4 FY26, along with an industry-leading Net Promoter Score (NPS) of 81, indicating strong customer satisfaction and expansion within its client base.
On the profitability front, Fractal improved its margins and earnings. Gross margin rose to 48.2%, up 47 basis points year-on-year, while Adjusted EBITDA margin expanded by 189 basis points to 22%. Net income more than doubled, growing 109% year-on-year to ₹116 crore.
Management Commentary
Commenting on the performance, Srikanth Velamakanni, Group CEO, said: “We wrapped up FY 2026 on a strong note, with robust revenue and profit growth while delivering AI-led transformation for our clients. AI is becoming more capable every day: AI that can plan, reason, and act through complex enterprise work – and this frontier intelligence is becoming much more affordable to deploy. This, in no uncertain terms, means that enterprise AI is taking off. And it is exactly what Fractal was built for.”
Company Overview & Others
Fractal is a publicly listed global enterprise AI company with a vision to power every human decision within organisations. It works with Fortune 500-sized companies, helping them embed AI into critical business areas such as growth strategy, supply chains, pricing, and customer experience. The company has a global workforce of over 5,000 professionals across North America, EMEA, and Asia-Pacific.
It is also strongly focused on innovation, investing more than 6% of its annual revenue in AI research and development. These investments support foundational AI research, product development, and intellectual property creation, addressing both immediate client requirements and long-term advancements in artificial intelligence.
The company reported strong capital efficiency metrics, with Return on Capital Employed (ROCE) at 16.6% and Return on Equity (ROE) at 17.2%, reflecting healthy profitability from its deployed capital and shareholder equity. Its debt-to-equity ratio stands at a conservative 0.25, indicating a relatively low reliance on borrowed funds and a stable financial structure.
Operationally, the company has also improved its efficiency in managing short-term resources. Working capital requirements have reduced from 28.8 days to 22.2 days, showing better cash flow management and quicker conversion of investments into revenue.
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