Fractal Analytics Q2 profit more than doubles to Rs 79.2 crore

Fractal Analytics Limited reported consolidated profit after tax of Rs 79.2 crore for the quarter ended September 30, 2026, up from Rs 33.2 crore a year earlier, while revenue from operations rose 19.8% to Rs 956.5 crore. Profit before tax increased to Rs 103.2 crore from Rs 45.8 crore as revenue grew faster than total expenses.

How did Fractal Analytics perform in Q2 2026?

Fractal Analytics reported higher revenue, profit and earnings per share in the September 2026 quarter. Revenue from operations was Rs 956.5 crore, compared with Rs 798.5 crore in the quarter ended September 30, 2025, and Rs 912.5 crore in the preceding June 2026 quarter. Total income, including Rs 28.8 crore of other income, was Rs 985.3 crore, against Rs 819.4 crore a year earlier.

Profit after tax was Rs 79.2 crore, rising Rs 46 crore year-on-year from Rs 33.2 crore and Rs 6.9 crore sequentially from Rs 72.3 crore in June 2026. Basic earnings per share were Rs 4.71, compared with Rs 2.15 a year earlier and Rs 4.31 in the preceding quarter. Profit attributable to owners of the parent was Rs 81.2 crore, while non-controlling interests recorded a Rs 2 crore loss.

The September 2025 comparative figures were approved by Fractal Analytics' board but had not been subject to limited review, because quarterly-results submission became applicable after its February 16, 2026 listing. The audit committee and board approved the unaudited consolidated September 2026 results on November 3, 2026, and the statutory auditor issued an unmodified review conclusion.

What drove Fractal Analytics' Q2 profit increase?

Fractal Analytics' profit before tax rose because its Rs 158 crore increase in revenue from operations exceeded the Rs 112.3 crore rise in total expenses. Employee-benefit expense, the largest cost line, increased to Rs 656.7 crore from Rs 571.1 crore. Employee stock-option expense, however, declined to Rs 4.5 crore from Rs 18.1 crore in the September 2025 quarter.

Profit before the associate loss, exceptional items and tax was Rs 126.4 crore, compared with Rs 72.8 crore a year earlier. The group recorded a Rs 23.2 crore share of loss from its associate, versus Rs 22.2 crore in the prior-year quarter. Finance costs declined to Rs 5.3 crore from Rs 11.5 crore, while depreciation and amortisation increased to Rs 47.2 crore from Rs 33.5 crore.

The September 2026 quarter contained no exceptional item, while the September 2025 quarter included a Rs 4.8 crore exceptional expense for share of upside consideration. Reported segment result increased to Rs 150.1 crore from Rs 96.9 crore, before separately disclosed associate loss, other income, finance costs, depreciation, amortisation, exceptional items and tax. This compares with revenue from operations of Rs 956.5 crore and Rs 798.5 crore, respectively.

Which Fractal Analytics segments contributed to revenue?

Fractal.ai generated most of Fractal Analytics' revenue increase, reporting Rs 936.1 crore in the September 2026 quarter against Rs 775.8 crore a year earlier. Fractal Alpha revenue rose to Rs 34 crore from Rs 24.3 crore. After Rs 13.6 crore of intersegment eliminations, consolidated revenue from operations was Rs 956.5 crore.

Fractal.ai's segment result rose to Rs 161.3 crore from Rs 113.5 crore, while Fractal Alpha's segment loss widened to Rs 11.2 crore from Rs 8.7 crore. The group identifies Fractal.ai and Fractal Alpha as operating segments serving artificial-intelligence services and software markets through products and services. The chief executive officer is the chief operating decision maker for allocating resources between the two segments.

Fractal Analytics transferred its FAA, Edtech and iqigai businesses from Fractal.ai to wholly owned subsidiary Analytics Vidhya Educon Private Limited effective May 1, 2026. The board approved the transfer on March 20, 2026. Earlier segment results and the previous year were restated for comparison because those businesses moved from Fractal.ai to Fractal Alpha.

What do Fractal Analytics' cash flow and balance sheet show?

Fractal Analytics held Rs 324 crore of cash and cash equivalents at September 30, 2026, compared with Rs 206.7 crore at March 31, 2026. For the six months ended September 30, 2026, net cash used in operating activities was Rs 23.7 crore, compared with Rs 21.4 crore used in the corresponding 2025 period. Trade receivables increased by Rs 140 crore during the six months.

Investing activities generated Rs 413.7 crore during the six months ended September 30, 2026, compared with an outflow of Rs 202.1 crore a year earlier. The cash movement included Rs 1,006.6 crore of mutual-fund maturity proceeds, Rs 883.8 crore of mutual-fund purchases and Rs 344.6 crore of net bank-deposit redemptions. Financing activities used Rs 278.3 crore, including Rs 288.7 crore of borrowing repayments.

Total assets were Rs 4,175.7 crore at September 30, down from Rs 4,407.1 crore at March 31, 2026. Trade receivables rose to Rs 842.9 crore from Rs 710.2 crore, while current investments declined to Rs 777.1 crore from Rs 874.1 crore. Total equity increased to Rs 3,427.4 crore from Rs 3,186.3 crore and total liabilities decreased to Rs 748.3 crore from Rs 1,220.8 crore.

Conclusion

Fractal Analytics combined 19.8% year-on-year revenue growth with a 138.6% increase in profit after tax in the September 2026 quarter. Fractal.ai supplied most of the Rs 158 crore rise in consolidated revenue and increased its segment result, while Fractal Alpha increased revenue but remained loss-making at the segment-result level. Lower finance costs and the absence of the prior-year exceptional expense also affected the comparison.

The next disclosed matter to watch is the use of Rs 607.8 crore of unutilised initial public offering proceeds at September 30, 2026. The stated allocations include Rs 284 crore for Fractal Alpha research and development and sales and marketing, Rs 121.1 crore for new India offices, Rs 161.1 crore for inorganic growth and strategic initiatives, and Rs 41.6 crore for laptops. Asper.ai Inc. also contracted on November 2, 2026 to acquire selected Pricing One SA assets and liabilities for net consideration of Rs 15.2 crore, subject to final calculations and exchange-rate adjustments.