Company Overview
Founded in 2000 and headquartered in Mumbai, Fractal Analytics has emerged as India’s foremost pure‑play enterprise AI and analytics firm. With two decades of continuous innovation, it partners with Fortune 500 clients to deliver AI‑powered decision-making across sectors including retail, BFSI, healthcare, consumer goods, and technology. Its global operations span North America, Europe, and Asia-Pacific, contributing over 90% of its revenue. Fractal stands at the forefront of AI-driven transformation, blending industry expertise with cutting-edge analytics platforms.
Product Portfolio
- Fractal Alpha: A robust AI analytics platform for end-to-end enterprise insights.
- Kalaido.ai: A generative AI tool for crafting visual and data-driven content.
- Cogentiq: Agent-based AI solutions to streamline and automate business workflows.
- Vaidya.ai: Healthcare-centric AI offering diagnostic tools and clinical insights.
Key Highlights of the Year (FY25)
- Robust Revenue Growth: Revenue from operations climbed to ₹2,765 crore, reflecting nearly 26% year-on-year growth, driven by expanding AI adoption across global enterprises.
- Strong Profitability Rebound: After a loss in FY24, Fractal recorded a Profit After Tax (PAT) of ₹220.6 crore, highlighting resilience and improved operational efficiency.
- EBITDA Momentum Restored: EBITDA margins improved to 14.4% in FY25 from just 4.4% in FY24, underscoring better cost management and scalability.
- Healthy Cash Flows: Operating cash flow surged to ₹397 crore, a significant jump compared to ₹159.5 crore in FY24, signaling strong financial discipline.
- Client Stickiness: Net Revenue Retention (NRR) stood at 121.3%, showing Fractal’s ability to not only retain but also expand revenue from its existing top-tier clients.
- Global Workforce Expansion: Employee strength crossed 5,200+ professionals worldwide, reinforcing its capacity to deliver large-scale AI and analytics projects.
Fractal Analytics – Revenue and Client Concentration Data (₹ in Crores)
| Particulars | 2025 Amount (₹ Cr.) |
2025 (%) | 2024 Amount (₹ Cr.) |
2024 (%) | 2023 Amount (₹ Cr.) |
2023 (%) |
|---|---|---|---|---|---|---|
| Revenue from operations in our Fractal.ai segment | 270.37 | 100.0% | 216.15 | 100.0% | 196.91 | 100.0% |
| Our Top 10 clients in our Fractal.ai segment | 145.37 | 53.8% | 118.09 | 54.6% | 100.64 | 51.1% |
| Revenue from our Top 20 clients in our Fractal.ai segment | 188.31 | 69.6% | 151.14 | 69.9% | 139.24 | 67.0% |
| MWCs (number) | 113 | – | 110 | – | 107 | – |
| Revenue from MWCs in our Fractal.ai segment | 218.37 | 80.8% | 194.21 | 89.8% | 176.78 | 89.8% |
AI Platforms Market Overview
Market Size & Growth
The AI platforms market was estimated to be worth US$57 billion (₹4.8 trillion) in Fiscal 2025 and is expected to reach US$149 billion (₹12.5 trillion) in Fiscal 2030, growing at an estimated CAGR of 21.3%.
Key Demand Themes for AI Platforms
- Use case orchestration and deployment of tailored AI use cases: AI platforms offer a flexible and scalable environment and a range of tools and libraries for customizing, developing, and deploying tailored AI solutions. For example, a retail company may use an AI platform to build a custom recommendation engine. AI platforms also enable efficient orchestration and management of AI applications and use cases across enterprises.
- Increasing access to various AI models and tools: The evolution of AI technologies has increased the accessibility of pre-trained models, specialized tools, and customizable frameworks. This enables organizations to select the most suitable models for specific use cases, accelerating AI development and deployment.
- Low-code/No-code tools enabling AI democratization: Auto-ML capabilities empower non-technical users to build AI pipelines and solutions. Further, AI copilots and code assistants can provide real-time suggestions and automate parts of the coding process. The involvement of business users also enables enterprises to focus on extracting more business-oriented outcomes from these AI initiatives.
Technological Edge & Achievements
Fractal continues to lead in AI innovation through strong R&D investment, with a global team of 5,200+ experts. Its homegrown platforms—Fractal Alpha, Kalaido.ai, Cogentiq, and Vaidya.ai—demonstrate its ability to stay ahead with emerging technologies like generative AI and adaptive AI agents. The company has also won multiple industry accolades for AI excellence and analytics intelligence.
General Investment Risk
- Risk of total loss: Investments in this offer are highly risky, and investors should be prepared to lose their entire investment.
- Read the risk factors: It’s crucial for investors to carefully read and understand the “Risk Factors” section before making any investment decision.
- Do your own research: Investors must rely on their own analysis of the company and the offer, including all associated risks.
- No SEBI recommendation: The Securities and Exchange Board of India (SEBI) has not recommended or approved the equity shares in this offer.
Valuation
Recent secondary share sales, such as the ~$170 million (around ₹1,460 crore) stake sold by Apax, valued Fractal Analytics at approximately $2.44 billion even before its IPO. This highlights the strong investor demand and confidence in the company’s growth prospects and its positioning as a leading enterprise AI player.
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Investment Thesis
- Pure AI-Play Opportunity: Direct exposure to enterprise AI in a rapidly growing market.
- Global Diversification: Reliable international client base reducing concentration risks.
- Product Innovation Pipeline: Suite of scalable, modern AI platforms ready for next-gen demand.
- IPO as a Milestone: The listing offers early access to institutional grade AI firm, well-positioned for long-term growth.
Conclusion
Fractal Analytics’ IPO brings one of India’s most innovative AI-first firms to public markets. With strong fundamentals, innovative products, global clientele, and a solid balance sheet, the company offers compelling long-term potential. Investors bullish on AI-led growth may find this offering particularly attractive, although short-term traders should weigh valuation and market conditions carefully.
Frequently Asked Questions (FAQ)
What makes Fractal Analytics unique?
It is the only pure-play AI and analytics firm in India with a global footprint and proprietary platforms across verticals, backed by decades of domain expertise.
How strong is growth in FY25?
FY25 revenue grew ~26% over FY24 to ₹2,765 crore, reversing the previous year’s loss into a profit of ₹22 crore, and delivering strong EBITDA and cash flow performance.
What are the main risks?
Key risks include competitive pressure, valuation concerns, geographic dependency, technology disruption, and changing data regulations.
How is the company’s valuation positioned?
Pre‑IPO secondary deals valued Fractal at ~$2.44 billion. With the IPO proceeds, it’s expected to command a valuation exceeding $3.5 billion—indicative of investor optimism in AI growth.
Why should long‑term investors consider it?
Fractal offers direct exposure to enterprise AI, strong financial momentum, innovative platform ecosystem, and global diversification—creating a solid foundation for sustainable returns.