Fractal Analytics Ltd (Fractal), established in 2000 and headquartered in Mumbai, is recognized as India’s first dedicated enterprise AI and advanced analytics company with a strong global footprint across the US, Europe, and Asia. The company works with leading Fortune 500 clients including Microsoft, Apple, and Amazon. Its operations are divided into two key segments: Fractal.ai, which provides services and products through its platform Cogentiq, and Fractal Alpha, which brings together a portfolio of AI-driven businesses to address diverse client requirements across industries and functions.
Key Highlights
The global DAAI (Data Analytics & AI) market is projected to grow from US$143 billion in 2025 to US$310 billion by 2030 at a 16.7% CAGR, driven by Gen AI adoption across BFSI, healthcare, retail, CPG, and TMT sectors.
Fractal delivered steady topline growth, with revenue rising from ₹1,985cr in FY23 to ₹2,765cr in FY25 at an 18% CAGR, driven by strong demand for enterprise AI solutions and deeper engagement with global Fortune 500 clients.
EBITDA margin improved to 12.7% in FY25 from 3.3% in FY24, reflecting better cost control and operating leverage.
After incurring a PAT loss in FY24, the company achieved a strong turnaround in FY25 with a net profit of ₹220.6cr, reflecting resilience and improved operating leverage.
At the upper price band of ₹900, Fractal is valued at a P/E of 70x for FY25 and a P/E of 109x (annualised) for FY26E, reflecting an expensive valuation. However, Fractal Analytics offers a compelling investment opportunity in India’s enterprise AI ecosystem, supported by a strong global client base, improving profitability, and exposure to a rapidly growing sector. Hence, we recommend a ‘Subscribe’ rating for high-risk investors with a long-term investment horizon.
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