Fractal Analytics Q2 FY27 results: net profit ₹79.20 crore

How did Fractal Analytics perform in Q2 FY27?

Fractal Analytics reported consolidated revenue of ₹956.50 crore for Q2 FY27, EBITDA of ₹150.10 crore and an EBITDA margin of 15.7%. Revenue rose 4.8% from ₹912.50 crore in Q1 FY27, while EBITDA increased 5.0% from ₹142.90 crore and the margin remained unchanged at 15.7%.

Profit before tax was ₹126.40 crore, up 4.6% from ₹120.80 crore in Q1 FY27, and net profit rose 9.5% to ₹79.20 crore from ₹72.30 crore. Basic EPS increased to ₹4.71 from ₹4.31. On a standalone basis, revenue was ₹534.20 crore and profit after tax was ₹73.40 crore.

The investor presentation reported year-on-year revenue growth of 20%, including 10% growth in constant currency, and year-on-year net profit growth of 139%. The presentation also reported adjusted EBITDA growth of 30%, a 16.2% adjusted EBITDA margin and gross margin of 44%.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets stood at ₹4,175.70 crore, lower than ₹4,407.10 crore on 31 March 2026. Total equity was ₹3,427.40 crore, compared with ₹3,186.30 crore, while borrowings fell to ₹0 from ₹286.00 crore. Cash and cash equivalents increased to ₹324.00 crore from ₹206.70 crore.

Trade receivables rose to ₹842.90 crore from ₹710.20 crore, while trade payables fell to ₹127.80 crore from ₹135.60 crore. For the first half of FY27, operating cash flow was negative ₹23.70 crore, investing cash flow was positive ₹413.70 crore and financing cash flow was negative ₹278.30 crore; capital expenditure was ₹60.60 crore. A comparable year-ago cash-flow figure was not provided.

Which businesses drove the quarter?

Fractal.ai reported revenue of ₹936.10 crore and EBIT of ₹161.30 crore for Q2 FY27. Its EBIT margin was 17.2%. The company’s investor presentation reported Fractal.ai revenue growth of 14% year on year and an operating EBIT margin of 10.8%.

Fractal Alpha reported revenue of ₹34.00 crore and an EBIT loss of ₹11.20 crore in Q2 FY27, with an EBIT margin of negative 32.9%. The presentation reported Fractal Alpha revenue of ₹340 million, up 40% year on year, and an operating EBIT loss of ₹104 million; year-ago segment revenue and EBIT were not provided in the facts.

What else did the company announce?

On 3 November 2026, the board approved the unaudited consolidated and standalone financial results for the quarter and six months ended 30 September 2026, subject to limited review by B S R & Co. LLP. It also approved the winding up of Analytics Vidhya Inc., a step-down subsidiary, to simplify the group’s corporate structure and reduce compliance and administrative overheads without affecting ongoing operations.

A same-day filing said Asper.AI Inc., a step-down subsidiary, contracted with key employees of Pricing One SA and acquired certain assets and liabilities without buying shares or any other equity interest. The approximate transfer price was CHF 13,19,308.76, described in the filing as an INR equivalent of ₹15.21 crore, to acquire talent and revenue-growth-management capabilities and expand Asper’s European presence. No dividend, fund-raise or appointment was disclosed in the provided filings.

What did Fractal Analytics' management say?

Management said gross margin could come back up as early as the next quarter and recover significantly in Q3 and Q4 FY27. It reiterated a medium-term construct of increasing revenue growth while taking adjusted EBITDA as close to 22% as possible, with profitability expected to show a decent improvement by Q4 FY27. Management also said G&A should grow at roughly half the rate of revenue growth.

Management expected CPG to grow sequentially over the next two quarters, with better year-on-year growth from the next fiscal, and expected TMT to continue sequential growth in Q3 and Q4 FY27. It said Fractal Alpha could approach break-even by the end of FY27 and break even during the next year. No formal FY27 revenue or margin growth range was given.

Co-founder and Group CEO Shrikanth Velamakani said enterprise adoption had not fully opened and that the company was ready to capitalise on it. He said organic growth should improve the company’s right to win and future growth prospects rather than merely add revenue. Risks identified included gross-margin dilution from AI engineering and forward-deployed-engineering hiring, muted CPG growth, and constant-currency revenue growth of only 10% against 20% reported growth.

How did Fractal Analytics shares react?

The filing was released after market hours. From the price when it appeared, the stock rose 1.1% after 5 minutes, 3.4% after 15 minutes and 5.9% after 30 minutes. It closed the reaction day 13.2% above its previous close, while the Nifty Smallcap 250 rose 2.0%; the median move for other Computers - Software & Consulting stocks was negative 0.0%.

By the next day's close, the stock was up 10.1% from its pre-results close, compared with a 1.1% median move for other industry stocks over the same period. The five-session move was not provided. Earlier reaction-day moves were negative 9.3% on 23 July 2026, negative 2.8% on 11 May 2026 and positive 4.9% on 5 March 2026.

How did other Computers - Software & Consulting companies do?

Among 40 Computers - Software & Consulting companies that had filed for the quarter as of 6 November 2026, the median revenue growth was 14.6%. The data identifies 18 peers growing slower than Fractal Analytics and 12 growing faster, while 25 reported higher profit. Fractal Analytics reported 20% revenue growth, 5.0% constant-currency revenue growth and 139% net profit growth, compared with the peer figures reported for the quarter.