Highlights
| Issue Size – 31,487,777 shares | Issue Open/Close – 09 Feb / 11 Feb, 2026 |
| Price Band (Rs.) 857 – 900 | Issue Size (Rs.) ~ 28,340 mn |
| Face Value (Rs) 1 | Lot Size (shares) 16 |
Fractal Analytics Limited (FAL) incorporate in 2000, is a leading global enterprise AI and analytics company that helps large companies make better decisions. Spanning more than two decades, the company designs AI solutions by mixing deep technical acumen with functional and domain expertise.
FAL supports large global enterprises with data-driven insights and assist them in their decision making through its end-to-end AI solutions. They build their AI solutions by leveraging their technical, domain and functional capabilities built over their operating history of over 25 years.
As of H1FY26 company’s full suite of AI solutions are organized under two segments: Fractal.ai (comprising AI services and AI products primarily hosted on Cogentiq) and Fractal Alpha (comprising AI businesses). Through these two segments, they cater to the diverse business needs of thier clients across industries and business functions.
Out of the total proceeds from the offer, ~Rs. 2,649 mn would go towards investment in offshore subsidiary for debt repayment, ~Rs. 571 mn would go towards capex and ~Rs. 1211 mn would go towards setting up new office, Rs. 3,551 mn would go towards R&D, sales and marketing, Rs 2,248 mn would go towards unidentified acquisitions and general corporate purposes. While ~Rs. 18,100 mn would go towards existing selling shareholders of the company.
Key Highlights
- The AI software market was estimated to be worth USD 101 bn (Rs. 8 tn) in FY25 and is expected to reach USD 283 bn (Rs. 24 tn) in FY30. The overall AI software market is estimated to grow at a CAGR of 22.9 pct over FY25-FY30.
- The Company is India’s leading pure-play enterprise data, analytics and AI company, recognized globally, with capabilities across the data, analytics and AI (“DAAI”) value chain and is uniquely placed among other industry players, with active investments in expanding its AI and Gen AI software portfolio and research and development capabilities.
- Company works with marquee clients across focus industries of CPGR, TMT, HLS and BFSI. Its clients include Citi, Costco, Franklin Templeton, Mars, Mondelez, Nationwide, Nestle, Philips, among others with its revenue base diversified both across and within its focus industries.
- The company’s core strategies include (i) Acquire and grow “must win clients”, or “MWCs” (ii) Expand capabilities by investing in AI research and product innovation (iii) Continue to build a great place to work (iv) Partner with leading technology companies (v) Accelerate our capabilities through acquisitions.
- Company’s employee count as of H1FY26 was 5,871 of which 5,722 were full time employees and 49 third party employees, of these employees 5,167 employees operate from India, 382 from USA, remaining 173 from locations including UK, Australia, Canada, Singapore, China, UAE, Germany, Netherlands, Ukraine and Switzerland.
- Sales of the company has grown by 58.1 pct CAGR in over FY23-25 and EBITDA and Profit grew by 71.4 pct CAGR and 103.2 pct CAGR over same period. During FY25 the sales of the company jumped by 55.9 pct YoY to Rs. 19,077 mn. While EBITDA of the company grew by 64.4 pct YoY to Rs. 3091 mn and EBITDA margin expanded by 83 bps to 16.2 pct YoY in FY25. During FY25, the company reported profit of Rs. 1466 mn, which grew 361 pct YoY.
Key Risk
- The Company has reported net loss in FY24 and losses before exceptional items and tax expense in FY23 and FY24. There is no assurance that they will not incur losses in the future as they expand their operations.
- Company’s success depends on its ability to adapt to changes in client or market preferences and to adopt new technologies. Its failure to do so could adversely affect business and results of operations.
Financial Performance
| (In Rs. million, unless otherwise stated) | FY23 | FY24 | FY25 | H1FY25 | H1FY26 |
| Revenue from Operations | 19,854 | 21,963 | 27,654 | 13,007 | 15,590 |
| EBITDA | -1,164 | 734 | 3,499 | 1,335 | 1,996 |
| EBITDA Margin % | -5.9% | 3.3% | 12.7% | 10.3% | 12.8% |
| Profit/Loss | 1,944 | -547 | 2,206 | 729 | 709 |
| Profit/Loss Margin % | 9.8% | -2.5% | 8.0% | 5.6% | 4.5% |
| Net Revenue Retention % | 151.0% | 110.2% | 121.3% | 119.1% | 114.0% |
| Total Employees | 4,221 | 4,639 | 5,254 | 4,755 | 5,722 |
Valuation
Fractal Analytics Limited is a globally recognized enterprise artificial intelligence (AI) company, with a vision to empower human decision-making within client enterprises, Fractal delivers data-driven insights through comprehensive AI solutions. Drawing on over 25 years of technical, domain, and functional expertise, the company supports large global organizations across the full spectrum of AI transformation—from ideation to adoption. At the upper end of the price of Rs. 900, the issue quotes P/S of 5.6x on FY25 revenue. The issue looks fully priced. One can avoid this issue.
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