IPO - Fractal Analytics Limited

10 Feb 2026 , 07:10 PM

Fractal Analytics Limited is a leading B2B enterprise AI and advanced analytics company that enables large organisations to make high-impact, data-driven decisions. The company works closely with Fortune 500 and Global 2000 clients across BFSI, healthcare, retail, consumer goods, technology, and manufacturing, positioning itself as a strategic AI partner rather than a traditional IT services vendor.

Operating in the rapidly expanding AI and analytics services industry, Fractal benefits from strong secular tailwinds. The global enterprise AI and analytics market is projected to grow at a CAGR of ~17% through 2030, driven by accelerating digital transformation, rising data complexity, and the need for real-time decision intelligence. Fractal’s offerings sit at the intersection of analytics, AI platforms, and domain-specific consulting making it a direct beneficiary of this shift.

The company is entering the capital markets at a critical inflection point. In FY25, Fractal reported revenue of ₹2,816 crore, registering a robust 26% year-on-year growth. More importantly, it delivered a sharp turnaround in profitability, moving from a net loss of ₹54.7 crore in FY24 to a net profit of ₹221 crore in FY25, underscoring improving operating leverage and scale benefits.

At the upper price band of ₹900, Fractal is valued at approximately 70x FY25 diluted earnings (EPS ₹13.36). This represents a premium valuation relative to listed IT and analytics peers, implying expectations of sustained high growth, expanding margins, and deeper enterprise penetration over the medium term. The IPO is therefore best viewed as a long-term play on enterprise AI adoption rather than a near-term valuation arbitrage.

Details of the IPO 

Issue Type: Offer For Sale + Fresh Issue

Total Issue Size: INR 2,833.90 crore

Price Band: INR 857 – INR 900 per equity share

Equity Shares Offered: Up to 31.49 million shares

• Fresh Issue: INR 1,023.50 crore

• Offer For Sale: INR 1,810.40 crore

Selling Shareholders:

• Quinag Bidco Ltd. – up to INR 8,809 million

• TPG Fett Holdings Pte. Ltd. – INR 4,500 million 

• Satya Kumari Remala and Rao Venkateswara Remala – up to INR 295 million

• GLM Family Trust  – up to INR 4,500 million

Book Running Lead Managers:

• Axis Capital Limited 

• Kotak Mahindra Capital Company Limited 

• Morgan Stanley India Company Private Limited 

• Goldman Sachs (India) Securities Private Limited

IPO Open: 09 Feb 2026 

IPO Close: 11 Feb 2026 

Industry Outlook

The global AI and advanced analytics industry is undergoing a structural transformation, evolving from experimental deployments to mission-critical enterprise infrastructure. Enterprises are increasingly embedding AI into core decision-making processes—ranging from pricing, supply chain optimisation, and customer engagement to fraud detection and clinical analytics.

Industry growth is being driven by three key forces. First, exponential growth in enterprise data has made traditional analytics insufficient, creating demand for AI-driven decision intelligence platforms. Second, cloud adoption and scalable computing have significantly reduced deployment barriers for advanced AI solutions. Third, the emergence of generative AI has expanded use cases beyond predictive analytics into automation, content intelligence, and real-time decision support.

India-headquartered analytics firms like Fractal are particularly well-placed to capitalise on this opportunity. They combine cost-efficient global delivery models with deep domain expertise, enabling them to compete with global consulting firms while offering differentiated AI platforms. BFSI, healthcare, retail, and consumer goods remain the largest demand drivers, accounting for a majority of enterprise AI spending.

However, the industry is also becoming more competitive. Global IT services majors, cloud hyperscalers, and niche AI startups are all vying for enterprise budgets. This increases pressure on innovation, talent retention, and platform differentiation. Companies that can demonstrate measurable ROI, high client retention, and scalable AI platforms are likely to emerge as long-term winners.

Fractal’s positioning as a platform-led analytics company, rather than a pure services provider, aligns well with industry evolution. Its ability to blend SaaS-based AI platforms with high-value consulting services gives it resilience in an environment where enterprises demand both flexibility and outcomes.

How the Company Is Performing vs Peers

Fractal has consistently outperformed traditional analytics peers on revenue growth, driven by strong client mining and expanding wallet share. Its FY25 revenue growth of ~26% is meaningfully higher than most listed mid-tier IT and analytics firms. Net revenue retention exceeding 110% and client retention above 90% highlight strong customer stickiness.

However, margins remain more volatile compared to mature IT peers due to continued investments in AI platforms, talent, and R&D. While profitability has turned positive, margin stability will be closely watched.

Company vs Peers

Where Fractal Beats Peers

• Higher revenue growth trajectory

• Strong exposure to high-growth AI and decision intelligence

• Platform-led recurring revenue model

• Deep domain specialisation in BFSI, CPG, and healthcare

Where Fractal Lags

• Premium valuation multiples

• Higher client concentration risk

• Shorter track record of stable profitability

PE & PB Comparison with Peers

• Fractal Analytics: ~70x P/E (FY25) | Premium PB

• Listed Analytics / IT Peers: Typically 25–40x P/E

The valuation premium reflects Fractal’s positioning as a pure-play enterprise AI company rather than a conventional IT services firm.

Key Takeaways from the RHP

Objects of the IPO

• Repayment/prepayment of certain borrowings

• Investment in capital expenditure and technology infrastructure

• General corporate purposes

Pending Projects / Focus Areas

• Expansion of AI platform capabilities, including generative AI modules

• Strengthening global delivery and cloud infrastructure

• Continued investment in talent and R&D

Recent & Media Highlights

• Strong turnaround to profitability in FY25

• Increasing adoption of Fractal.ai platform across Fortune 500 clients

• Recognition as a key beneficiary of enterprise AI adoption amid automation concerns for traditional IT services