AI and advanced analytics firm Fractal reported a 20% year-on-year growth in revenue to Rs 956 crore in Q2 FY27, while its profit surged 2.4X to Rs 79 crore during the quarter.
The company’s revenue from operations stood at Rs 956 crore in Q2 FY27, compared to Rs 798 crore in the corresponding quarter last year, according to its NSE filings.
Founded in 2000, Fractal generates revenue from analytics and consulting services, along with licensing and subscription fees from its AI platforms, including Cogentiq, fflyfish.ai and Kalaido.ai. The company also earned Rs 29 crore from non-operating income, taking its total income to Rs 985 crore during the quarter.
Employee benefit expenses, the largest cost component, accounted for over 76% of the company's total expenses. The expense grew 4% year-on-year to Rs 657 crore in Q2 FY27. Depreciation, finance costs and other overheads pushed total expenses up 15% to Rs 859 crore during the quarter, compared to Rs 747 crore in Q2 FY26.
As revenue growth outpaced the rise in expenses, Fractal's profit increased 2.4X to Rs 79 crore in Q2 FY27 from Rs 33 crore in the same quarter last year. However, on a sequential basis, profit increased 10% from Rs 72 crore in Q1 FY27.
Fractal went public in February this year through a Rs 2,834 crore IPO, comprising a fresh issue and an offer for sale (OFS). The IPO also provided exits to existing investors, including Apax Partners and TPG Capital. The stock made a weak debut, listing at a 3% discount to its issue price.
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