Fractal, an artificial intelligence and advanced analytics provider, reported a 139% increase in net profit for the second quarter of fiscal year 2026-27, reaching ₹79.2 crore. This figure compares to a profit of ₹33.2 crore during the same period last year.
Revenue Growth and Vertical Performance
The company recorded revenue from operations of ₹956.5 crore, a 20% increase compared to the previous year. Total income, including other income of ₹28.8 crore, reached ₹985.3 crore. Fractal credited the growth to increased client spending and broad-based performance across its business verticals.
Performance varied across sectors. The healthcare and life sciences division led growth with a 79% year-over-year revenue increase. The banking, financial services, and insurance sector saw a 30% rise, while the consumer packaged goods and retail segment grew by 19%. Conversely, revenue from the telecom, media, and technology sector declined by 18%.
Geographic Breakdown and Corporate Changes
Geographically, the Americas remained the company’s primary market, contributing 67.3% of total revenue. Europe and the Asia-Pacific region accounted for 21.5% and 11.2% of revenue, respectively. The company also reported that its adjusted EBITDA rose 30% to ₹154.9 crore, with margins improving by 123 basis points to 16.2%.
During the quarter, the board approved the dissolution of its step-down subsidiary, Analytics Vidhya Inc. The company stated this decision aims to simplify its corporate structure and reduce administrative overhead.
Why it matters: The results indicate a strong demand for AI engineering talent and analytics services, particularly in the healthcare and banking sectors. For investors and industry observers, the growth in high-value client accounts suggests that companies are continuing to prioritize AI integration despite shifting economic conditions in specific tech sectors.