Fractal Q2 FY27 revenue up 20% to Rs 956 crore; net profit more than doubles
Its AI products, including the Cogentiq agentic AI platform, crossed an annual revenue run rate of Rs 150 crore, registering 39% growth.
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AI and analytics firm Fractal reported a 20% year-on-year increase in revenue from operations to Rs 956.5 crore in the July-September quarter of this fiscal FY27 from Rs 798 crore in the corresponding quarter last financial year.
Fractal's net profit surged more than doubled to Rs 79.2 crore during the quarter, compared to Rs 33 crore in Q2 FY26, according to filings with the stock exchanges.
The company's total income stood at Rs 985 crore, including Rs 29 crore in non-operating income. Revenue growth was primarily driven by its Healthcare and Life Sciences (HLS) segment, which grew 79%, followed by Banking, Financial Services and Insurance (BFSI), which recorded 30% growth. Its largest vertical, Consumer Packaged Goods and Retail (CPGR), grew 11%.
Fractal's total expenses increased 15% to Rs 859 crore during the quarter ended September from Rs 747 crore in the corresponding period last year.
The company reported a 71% increase in EBITDA to Rs 155.7 crore in Q2 FY27 from Rs 90.8 crore in the corresponding quarter last year. Adjusted EBITDA grew 30% to Rs 154.9 crore, while its margin expanded by 123 basis points to 16.2%.
Its AI products, including the Cogentiq agentic AI platform, crossed an annual revenue run rate of Rs 150 crore, registering 39% growth. Net revenue retention stood at 115%, indicating higher spending by existing customers.
"AI models are getting more capable every week and cheaper every quarter. Within the next few quarters, we will cross a threshold where it becomes irresponsible and downright risky for companies to leave their most important decisions unchanged," said Srikanth Velamakanni, Co-founder and Group CEO of Fractal, "We are building Fractal for that moment, and this quarter shows it: revenue crossed $100 million and net income more than doubled," he added.
Founded in 2000, Fractal builds AI models, platforms and products for large enterprises, including Fortune 500 companies. Its offerings include Cogentiq, Fathom reasoning models and other AI-led solutions across industries. Fractal went public in February 2026 through a Rs 2,834 crore IPO, comprising a fresh issue and an offer for sale (OFS).