Summary: Fractal Analytics, a leading AI-solutions provider, will go public on February 9, 2026 and close on February 11, 2026. We examine the company’s financials, pros, cons and valuations to help you better understand whether the IPO is worth your money.
Fractal Analytics, a global enterprise AI and analytics company, is all set to open its IPO (initial public offering) on February 9, 2026 and close on February 11, 2026. Of the total issue size of Rs 2,834 crore, Rs 1,024 crore comprises a fresh issue while the remaining Rs 1,810 crore will be raised through an offer for sale (OFS).
Here, we breakdown Fractal Analytics’s strengths, weaknesses, valuations and past track record to help you make an informed investment decision.
What the company does
Fractal Analytics is a global enterprise AI company founded in 2000, focused on helping businesses use data and artificial intelligence to improve decision-making. It offers end-to-end AI solutions, supporting clients through the full AI transformation cycle, from ideation to adoption.
The company’s operations are organised under two segments: Fractal.ai (AI services and products) and Fractal Alpha (AI businesses). The company works mainly with large global enterprises, including Citi, Costco and Nestlé. Fractal has strong domain expertise across consumer, technology, healthcare and financial services, and aims to create measurable value by combining AI, engineering and design.
Track record and valuation
A quick glance at the financials shows that Fractal Analytics has been on a modest footing. During FY23-25, its revenue and net income (profit after tax) grew at an annual rate of 18 per cent and 6.5 per cent, respectively. Debt too, grew modestly, at 4.2 per cent per annum. However, EBIT (earnings before interest and tax) turned positive only in FY25.
At the upper end of the price band (Rs 900), Fractal Analytics’s stock is expected to be valued at nearly 71 times its TTM (trailing twelve months) earnings and 5.6 times its book value. It has no listed peers for comparison.
Fractal Analytics IPO details
Total IPO size (Rs cr)
2,834
Offer for sale (Rs cr)
1,810
Fresh issue (Rs cr)
1,024
Price band (Rs)
857-900
Subscription dates
February 9-11, 2026
Purpose of issue
Investment in subsidiary, setting up new office premises in India and funding R&D and sales and marketing initiatives
Post-IPO
M-cap (Rs cr)
15,474
Net worth (Rs cr)
2,997
Promoter holding (%)
17
Price/earnings ratio (P / E)
70.8
Price/book ratio (P / B)
5.6
Financial history
Key financials
2Y CAGR (%)
FY25
FY24
FY23
Revenue (Rs cr)
18.0
2,765
2,196
1,985
EBIT (Rs cr)
218
-26
-224
PAT (Rs cr)
6.5
221
-55
194
Net worth (Rs cr)
14.3
1,753
1,406
1,343
Total debt (Rs cr)
4.2
429
363
395
EBIT is earnings before interest and tax
PAT is profit after tax
Ratios
Key ratios
3Y average (%)
FY25
FY24
FY23
ROE (%)
8.2
14.0
-4.0
14.5
ROCE (%)
-1.1
11.0
-1.5
-12.7
EBIT margin (%)
-1.5
7.9
-1.2
-11.3
Debt-to-equity
0.3
0.2
0.3
0.3
ROE is return on equity
ROCE is return on capital employed
Below are some of the positives of Fractal Analytics.
#1 Among the leading AI solutions provider in India
Fractal is positioned as India’s leading pure-play enterprise data, analytics an AI company, with capabilities across the full DAAI (data, analytics and AI) valu chain. The company reported revenue growth of 18 per cent between FY23 and FY25, outpacing the global third-party DAAI market’s growth of 11 per cent, indicating market share gains.
Although incorporated in India, Fractal serves a largely international client base, with over 90 per cent of its revenue coming from outside India in FY25 and the first half of FY26.
#2 Long-standing clientele
Fractal has built long-standing relationships with marquee global clients across key industries such as consumer, technology, healthcare and financia services. Its client roster includes large enterprises like Citi, Costco, Nestlé anc Mondelez, supporting a well-diversified revenue base.
As of March 2025, the company worked with several top-20 players across the sectors, reflecting strong positioning in its target markets. Revenues from foc industries grew at 16.8 per cent between FY23 and FY25, with Gen AI adoption expected to further accelerate growth across these segments through FY30, Further, the top 10 clients contributed over half of revenues in H1 FY26, while strong net revenue retention highlights the company’s ability to retain and expand business with existing clients.
Here are some of the challenges faced by Fractal Analytics.
#1 Dependency on a handful of customers
Despite its diverse customer base, Fractal’s business performance is closely linked to its ability to attract, retain and deepen relationships with large enterprise clients. The company derives a significant portion of its revenue from a concentrated client base, with the top 10 clients contributing 54.2 per cent of Fractal.ai segment revenues in H1 FY26, and one client alone accounting for 8.2 per cent.
Any inability to maintain or expand these relationships, or to add new clients, could adversely affect the company’s financial performance.
#2 Revenue largely concentrated in a single region
Fractal derives a majority of its revenue from the United States, highlighting its strong dependence on overseas markets. The company reported that the US contributed 66 per cent of revenue in FY23, 62 per cent in FY24 and 65.2 per cent in FY25. This share remained high at 64.1 per cent in the six months ended September 2024 and 65 per cent in the six months ended September 2025. While this reflects a strong global client base, such international exposure also brings operational risks and challenges. These could increase costs, affect
norformance and noquine gronton monggomont attention.
Where will the IPO proceeds go?
Below is a breakdown of how Fractal Analytics plans to utilise its fresh issue proceeds of Rs 1,024 crore.
- Around Rs 265 crore will be invested in one of its subsidiaries, Fractal USA, for the repayment of its debt
- Rs 57 crore will be used for procurement of laptops
- Nearly Rs 121 crore will be utilised for setting up new office premises in India
- Rs 355 crore has been earmarked for funding research and development and sales and marketing initiatives under Fractal Alpha
The remaining funds, if any, will be utilised for inorganic acquisitions and general corporate purposes.
So, should you subscribe to the Fractal Analytics IPO?
Fractal Analytics may be among the key pure-play AI-solutions, boasting of major clients in India as well as globally. However, factors such as a modest track record, dependency on a handful of clients and cybersecurity risks pose a threat to its financial performance. It is yet to be seen whether Fractal Analytics is able to deliver over time, particularly post its IPO listing.
This is where Value Research Stock Advisor helps. With Stock Advisor, you can get access to expert-led guidance on investing in companies with steady growth, rather than chasing short-term IPO hype.
Disclaimer: This content is published for informational and educational purposes only and does not constitute investment advice or an offer to buy or sell any securities. Mutual fund and equity investments are subject to market risks; past performance is not indicative of future results. Readers should conduct their own research and/or consult a SEBI-registered investment advisor before making any investment decisions.
Fractal Analytics IPO – Frequently Asked Questions (FAQs)
Q1. When will the Fractal Analytics IPO open and close?
The Fractal Analytics IPO will open on February 9, 2026 and close on February 11, 2026.
Q2. What is the total issue size of the Fractal Analytics IPO?
The total IPO size is ₹2,834 crore.
Q3. How much of the IPO is a fresh issue and OFS?
Fresh issue: ₹1,024 crore
Offer for Sale (OFS): ₹1,810 crore
Q4. What is the price band for the Fractal Analytics IPO?
The IPO price band is set at ₹857–₹900 per share.
Q5. What does Fractal Analytics do?
Fractal Analytics is a global enterprise AI and analytics company that helps businesses use data and artificial intelligence to improve decision-making across the AI lifecycle, from ideation to adoption.
Q6. When was Fractal Analytics founded?
Fractal Analytics was founded in the year 2000.
Q7. What are the key business segments of Fractal Analytics?
The company operates through two segments:
Fractal.ai – AI services and products
Fractal Alpha – AI-led businesses
Q8. Who are Fractal Analytics’ major clients?
Fractal works with large global enterprises such as Citi, Costco, Nestlé, Mondelez, and other leading companies across consumer, technology, healthcare, and financial services.
Q9. How has Fractal Analytics’ revenue grown in recent years?
Between FY23 and FY25, the company’s revenue grew at a CAGR of 18%, outpacing the global third-party DAAI market growth of 11%.
Q10. How profitable is Fractal Analytics?
While revenue growth has been steady, EBIT turned positive only in FY25. Profit after tax grew at a CAGR of 6.5% between FY23 and FY25.
Q11. What is the company’s valuation at the upper price band?
At ₹900 per share, Fractal Analytics is valued at approximately:
71x trailing twelve months (TTM) earnings
5.6x book value
Q12. Does Fractal Analytics have any listed peers?
No, Fractal Analytics does not have any listed pure-play peers for direct valuation comparison.
Q13. How much revenue comes from international markets?
More than 90% of Fractal’s revenue comes from outside India, with the US contributing around 65% of total revenue in FY25.
Q14. What are the key strengths of Fractal Analytics?
Key positives include:
Leadership in enterprise AI solutions
Strong global client base
Long-standing relationships with marquee clients
Revenue growth faster than the industry average
Q15. What are the major risks associated with Fractal Analytics?
Key risks include:
Dependency on a handful of large clients
High revenue concentration in the US market
Modest profitability track record
Cybersecurity and operational risks
Q16. How concentrated is Fractal Analytics’ client base?
The top 10 clients contributed 54.2% of Fractal.ai segment revenues in H1 FY26, with one client accounting for 8.2%.
Q17. How will Fractal Analytics use the IPO proceeds?
The ₹1,024 crore fresh issue will be used for:
Debt repayment at Fractal USA
Procurement of laptops
Setting up new office premises in India
Funding R&D and sales & marketing under Fractal Alpha
Q18. What will be Fractal Analytics’ market capitalisation post-IPO?
Post-IPO, the company’s market capitalisation is expected to be ₹15,474 crore.
Q19. What will be the promoter holding after the IPO?
Post-listing, promoters will hold around 17% of the company.
Q20. Should investors subscribe to the Fractal Analytics IPO?
Fractal Analytics offers exposure to the fast-growing AI space with a strong client base. However, high valuation, client concentration, and modest profitability history mean investors should carefully assess risks before subscribing.
