Fractal Analytics: Powering Decisions with AI, Delivering Strong Q3 FY26 Performance

Fractal Analytics, a pure-play AI company, has reported a robust performance for the third quarter and nine months ended December 31, 2025, following its recent public listing. The company, focused on powering human decisions within enterprises through advanced AI solutions, showcased significant growth across key financial and operational metrics. For Q3 FY26, Fractal Analytics reported a revenue from operations of INR 854.4 crore, marking a substantial 21% year-over-year growth. This strong top-line expansion was complemented by impressive profitability, with the company's quarterly Profit After Tax (PAT) crossing the INR 100 crore milestone for the first time.

The company's performance was driven by a combination of strong existing client relationships and new client additions. Net Revenue Retention (NRR) stood at an impressive 114% for Q3 and 115% for the nine-month period, underscoring its ability to expand engagements with current clients. The healthcare and life sciences (HLS) segment emerged as a standout performer, achieving a remarkable 78% year-over-year revenue growth. The banking and financial services (BFSI) segment also demonstrated healthy growth at 26% year-over-year. Geographically, both the Americas and Europe contributed significantly, each growing by 26% year-over-year. While the CPG and retail segment experienced a more modest 14% growth due to tariff-related headwinds, and the TMT segment saw a slight degrowth of 2% due to client-specific issues, the overall picture reflects a diversified and resilient business model.

Strategic Investments and AI Leadership

Fractal Analytics' consistent investment in research and development (R&D) is a cornerstone of its strategy, with 6.8% of Q3 FY26 revenue allocated to R&D. These investments are yielding significant innovations, including the launch of Vaidya 2.0, a medical multimodal reasoning system that has achieved a 50+ score on OpenAI's HealthBench (Hard), outperforming leading models like ChatGPT-5 and Gemini Pro 3. This positions Fractal as a leader in verticalized AI solutions for healthcare. Additionally, the company introduced PiEvolve, an agentic engine for autonomous machine learning and scientific discovery, which ranks #2 on OpenAI's MLE-Bench, demonstrating its prowess in advanced AI frameworks.

The company is also building and scaling Cogentiq, an enterprise agentic AI platform designed to help organizations reimagine their workflows. This platform, along with other AI products like Fathom-R1-14B, asper, and Analytics Vidhya, forms a robust portfolio aimed at delivering impactful AI solutions. Fractal's commitment to innovation has not gone unnoticed; it won the Microsoft Partner of the Year 2025 award in the Retail and Consumer Goods category and secured