Transcript of Earnings Conference Call pertaining to the Audited Consolidated and StandaloneFinancial Results for the quarter and year ended March 31, 2026.
FRACTAL · price
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Fractal Analytics reported strong Q4 and full year FY2026 results. Q4 revenue grew 17% to INR 886 crore while FY2026 revenue rose 19% to INR 3,300 crore. The company achieved Q4 adjusted EBITDA margin of 22%, up 189 basis points year-on-year, with full year adjusted EBITDA at 17.6%. Net income jumped 30% to INR 287 crore for the year, and 43% to INR 357 crore excluding associate losses. The company ended debt-free with INR 2,052 crore in cash after repaying long-term debt. Key verticals showed mixed performance: Healthcare/Life Sciences led at 66% growth, BFSI grew 32%, while TMT declined 1% due to client-specific issues. Net revenue retention remained strong at 117%. The company reorganized around three pillars (AI-led transformation, AI foundations, AI for work) running on its Cogentiq platform. Qure.ai faced headwinds from USAID funding cuts but now has a strong order pipeline for recovery.
Strong execution with margin expansion demonstrates operating leverage. The shift toward output/outcome-based contracts and the Cogentiq platform should drive higher margins. Client-specific issues in TMT are temporary, and Qure.ai recovery should reduce profitability drag going forward.