Fractal Analytics (FRACTAL) Q4 25/26 earnings summary

Executive summary

• Achieved 19% year-over-year revenue growth for FY26, reaching INR 32,997 million, with Q4 revenue up 17% to INR 8,863 million; net income up 30% to INR 2,868 million.

• Adjusted EBITDA margin expanded to 22% in Q4 and 18% for the year; net income margin for Q4 at 13.1%.

• Ended the year debt-free after repaying long-term debt using IPO proceeds; cash and equivalents stood at INR 20,520 million.

• Net Promoter Score reached a record 81 in Q4, with net revenue retention at 117% for the year.

• Completed IPO in February 2026, raising INR 10,235 million via fresh issue and INR 18,104 million via offer for sale.

Financial highlights

• Q4 gross margin at 48%, adjusted EBITDA at 22%, and net income at 13%.

• FY26 revenue up 19% to INR 32,997 million; net income up 30% to INR 2,868 million; gross margin at 47%.

• Cash from operations for FY26 was INR 4,090 million, a 70% conversion of adjusted EBITDA.

• Revenue per billable employee increased 5% to INR 7.5 million (USD 85,000).

• Diluted EPS for FY26 at INR 17.19, up 29% year-over-year.

Outlook and guidance

• Expects robust growth in enterprise AI demand, with historical revenue growth rates seen as a good indicator for the coming year.

• Targeting 60% of revenue from output, outcome, or license-based contracts in 2–3 years (currently ~40%).

• License-driven revenue (including Cogentiq) to rise from 3% to 20% by 2030, supporting margin expansion.

• Continued investments in R&D and talent, with inorganic growth via strategic acquisitions.

• IPO proceeds are being deployed as per the prospectus, with significant allocations to R&D, sales and marketing, and inorganic growth.