Key takeaways
- Fractal Analytics reports 8.5% profit growth and 21% revenue increase in its first public earnings.
- Client demand for enterprise AI solutions drives growth, with net revenue retention at 114%.
- Healthcare and life sciences segment grows 78%, contributing 20% of total revenue.
- Fractal's stock rises 9% following the positive earnings announcement.
- CEO highlights significant potential for future enterprise AI adoption across industries.
Bengaluru-based AI firm Fractal Analytics reported its first set of earnings as a public company, posting steady profit growth and strong revenue expansion for the December quarter, sending its shares sharply higher.
In Q3 FY26, the company said consolidated profit after tax rose 8.5% year on year to ₹100 crore for the quarter ended December 31, 2025, compared with ₹92.2 crore in the same period last year. Revenue from operations grew 21% to ₹854 crore from ₹707 crore a year earlier.
Fractal’s stock climbed about 9% on the NSE to ₹826 following the announcement.
The company said client demand for enterprise AI solutions continued to drive growth across sectors. Net revenue retention during the quarter stood at 114%, indicating higher spending from existing clients.
Healthcare and life sciences emerged as the fastest growing segment, contributing 20% of total revenue and expanding 78% year on year. The banking and financial services segment accounted for 12% of revenue and grew 26% during the quarter as financial institutions increased adoption of AI-led analytics.
“Our best-in-class organic growth, gross margins, and high client retention reflect the strength of our enterprise AI capabilities and the trust our clients place in us,” said Srikanth Velamakanni, Group CEO and Executive Vice-Chairman of Fractal.
Velamakanni said the company also made progress in its AI research and platforms, including Vaidya and PiEvolve.
Reflecting on the company’s first earnings call as a listed firm, Velamakanni said enterprise AI adoption is still at an early stage.“Enterprise AI adoption will unfold over many years,” he said in his shareholder letter. “Even if AI capabilities stopped improving today, most organisations would still need years to absorb what is already possible.”
He added that the gap between what AI systems can do and what companies have actually deployed remains large, creating a long runway for enterprise AI providers.
“The age of enterprise AI is only beginning. We intend to help shape it.” Velamakanni said.
At the India AI Impact Summit 2026, Fractal launched Vaidya 2.0, a healthcare-focused large reasoning model. The firm highlighted practical AI applications in healthcare, customer experience, and talent management, emphasising sovereign AI for India.
