AI and advanced analytics company Fractal more than doubled (139%) its net profit to ₹79.2 Cr in the second quarter (Q2) of the fiscal year 2026-27 (FY27) from ₹33.2 Cr in the year ago quarter. Sequentially, the bottom line also rose 9.5% from ₹115.8 Cr in Q1 FY27.
Fractal attributed the growing profits to rising revenues, improving margins, increased spending by clients and broad-based growth across all its key verticals.
Revenue from operations rose nearly 20% to a record ₹956.5 Cr in the quarter under review as against ₹798.5 Cr in the preceding quarter. On a quarter-on-quarter (QoQ), the top line grew 4.8% from ₹912.5 Cr in Q4 FY26.
Including other income of ₹28.8 Cr, Fractal’s total income stood at ₹985.3 Cr during the quarter under review. In line with its top line, the company’s total expenses also rose 15% to ₹858.9 Cr in Q2 FY27 as against ₹746.6 Cr in the quarter ending September 2025.
In its investor presentation, Fractal also said that its adjusted EBITDA rose 30% YoY to ₹154.9 Cr during the quarter under review, while adjusted EBITDA margin improved by 123 bps YoY to 16.2%. The company attributed this to operating leverage; short-term impact in GM driven by investment in AI engineering talent.
Fractal also reported a loss of ₹23.2 Cr from an associate in the quarter, while its tax expenses stood at ₹24 Cr.
Giving a category-wise revenue split, the AI company claimed that its healthcare and life sciences (HLS) vertical clocked 79% YoY growth in revenues in Q2 FY27, while the banking, financial services and insurance (BFSI) revenue rose 30% YoY.
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