Fractal Analytics coming with IPO to raise Rs 2983 crore

06 Feb 2026 Evaluate

Fractal Analytics

  • Fractal Analytics is coming out with a 100% book building; initial public offering (IPO) of 3,31,44,762 shares of Rs 1 each in a price band Rs 857-900 per equity share. 
  • Not more than 75% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not more than 15% of the issue will be available for the non-institutional bidders and the remaining 10% for the retail investors.
  • The issue will open for subscription on February 9, 2026 and will close on February 11, 2026.
  • The shares will be listed on BSE as well as NSE.
  • The face value of the share is Rs 1 and is priced 857 times of its face value on the lower side and 900 times on the higher side.
  • Book running lead managers to the issue are Axis Capital, Kotak Mahindra Capital Company, Morgan Stanley India Company and Goldman Sachs (India) Securities.
  • Compliance Officer for the issue is Somya Agarwal.

Profile of the company

The company is a globally recognized enterprise artificial intelligence (AI) company, with a vision to power human decisions in its clients’ enterprises by leveraging AI. It supports large global enterprises with data-driven insights and assist them in their decision making through its end-to-end AI solutions. It builds its AI solutions by leveraging its technical, domain and functional capabilities built over its operating history of over 25 years. Its full suite of AI solutions is organized under two segments: Fractal.ai (comprising AI services and AI products primarily hosted on Cogentiq) and Fractal Alpha (comprising AI businesses). Through these two segments, it caters to the diverse business needs of its clients across industries and business functions.

It works with large global enterprise clients to help them navigate the entire life cycle of AI transformation from ideation to adoption to drive decisions in the enterprise. It aims to become a trusted partner to its clients. It focuses on its Must Win Clients (MWCs), who it defines as its clients who are enterprises that meet one of three criteria: (1) over $10 billion in annual revenue, (2) over $20 billion in market capitalization, or (3) over $30 million end-customers.

It is a client-centric company, which focuses on prioritizing its clients’ success and creating long-term value for them. Its ‘client first’ value is reflected in the tenure of its relationship with its top clients and its Net Promoter Score (NPS) based on client surveys. It is India’s leading pure-play enterprise data, analytics and AI company, recognized globally, with capabilities across the data, analytics and AI (DAAI) value chain. It is uniquely placed among other industry players, with active investments in expanding its AI and Gen AI software portfolio and research and development (R&D) capabilities.

Proceed is being used for:

  • Investment in one of its subsidiaries, Fractal USA, for pre-payment and/ or scheduled repayment, in full or in part, of its borrowings
  • Purchase of laptops
  • Setting-up new office premises in India
  • Investment in research and development and sales and marketing under Fractal Alpha
  • Funding inorganic growth through unidentified acquisitions and other strategic initiatives
  • General corporate purposes

Industry Overview

AI has been a remarkable technology that has helped reshape industries, optimize processes, and redefine human-machine interactions. Over the last two decades, there have been significant advances in data (big data and non-relational database management systems), compute (public cloud offerings and hardware), and AI and Machine Learning (ML) techniques (deep learning, reinforcement learning, General Adversarial Network (GAN), and transformers), among others.

The overall DAAI market, valued at an estimated $143 billion (Rs 12 trillion) in Fiscal 2025 is expected to grow at 16.7% CAGR to $310 billion (Rs 23 trillion) by Fiscal 2030. Banking, financial services, and insurance (BFSI), healthcare and life sciences (HLS), retail and distribution, consumer packaged goods (CPG) and technology, media and telecommunications (TMT) were estimated to account for 80% of the global DAAI services market in Fiscal 2025. Increased Gen AI adoption is likely to drive CAGRs for BFSI (16.7%), HLS (18.2%), retail and distribution (15.2%), CPG (15.0%) and TMT (15.7%) over Fiscals 2025-2030.

The strategic adoption of DAAI and expansion of its deployment across functions, geographies, and the workforce, helps companies strengthen its competitive advantage. AI's ability to glean insights from vast datasets fosters a deeper understanding of customer behavior and market trends. This empowers businesses to proactively anticipate customer needs, optimize internal processes, and make data-driven choices that propel them forward. Furthermore, AI automates repetitive tasks, enabling human capital to focus on higher-value strategic endeavors. From personalized marketing campaigns to streamlined production lines, AI empowers businesses to accelerate time-to-market and lower operational costs to assist in achieving market leadership.

Pros and strengths

Leading player in a large and growing AI market: The company is India’s leading pure-play enterprise data, analytics and AI company, recognized globally, with capabilities across the DAAI value chain. It recorded revenue growth at a CAGR of 18.0% over Fiscals 2023 to 2025 compared to the DAAI global third-party market’s CAGR of 11.0%, demonstrating its ability to win market share. While it is incorporated in India, it caters to a global clientele, with 92.4% of its revenue in the six months ended September 30, 2025 and 91.6% of its revenue in Fiscal 2025 from clients located outside of India. It has also achieved global recognition through various industry awards, for example: (i) Everest Group recognized it as a ‘Leader’ in the Everest Group Data and AI Services Specialists PEAK Matrix Assessment in 2025 (and its predecessor Analytics and AI Services Specialists PEAK Matrix Assessment in 2021, 2022 and 2024); and (ii) Forrester categorized us as a ‘Leader’ in five Forrester Waves for Customer Analytics Service Providers in 2025, 2023, 2021, 2019 and 2017.

Deep and integrated technical, domain and functional expertise: It designs, builds and delivers end-to-end AI solutions for its clients across industries leveraging its technical, domain and functional capabilities and expertise built over its operating history of over 25 years. Technical expertise stems from the company’s strong AI, engineering and design (AED) capabilities including Gen AI, machine vision, algorithmic decision making, cloud and data engineering, behavioral science and human-centered design, amongst others. Domain expertise stems from the company’s experience across its focus industries positions us well to understand industry specific problems. Functional expertise stems from the company’s work with clients across their various business functions like sales and marketing, supply chain, finance & accounting and data & AI among others. 

Culture of trust, transparency & freedom to nurture talent: Its success relies heavily on its employee talent. As of September 30, 2025, it had 5,722 employees. Its cultural values, multiple hiring channels and consistent focus on training and development enable it to hire and retain talent. It continually strives to enhance its AED capabilities by scaling its teams and upskilling and reskilling them. It hires talent through scalable channels including Iqigai.ai (its proprietary, AI powered hiring assessment platform), Imagineer Program (its campus recruitment program), lateral hiring program and ReBoot (its return from career break (returnship) program) to attract employees. It is highly selective in is hiring. 

Track record of inventing and investing to benefit client: It has demonstrated a track record of inventing, by identifying emerging trends in AI, developing new AI solutions, which is evidenced by investments in R&D and acquiring businesses to expand its capabilities. As of January 19, 2026, it had 28 registered patents and 38 patent applications. its commitment to technological research and development is aligned with the view that the technology landscape is ever evolving and it is critical for enterprises to be well-prepared to incorporate the latest techniques and technologies to drive competitive differentiation.

Risks and concerns

Cybersecurity and data risk exposure in DAAI: Security breaches, cyber-attacks, computer viruses, hacking activities and other cybersecurity incidents that affect its systems and the systems of its clients, vendors and third parties whom it relies on for cloud storage and processing of its data, may cause material adverse effects on its business, financial performance and results of operations and may expose it to loss of clients or business, litigation and possible liability. Data-related concerns, such as data privacy concerns, data security threats, lack of data quality, and data silos within enterprises, remain the biggest challenges that enterprises face when adopting DAAI.

High revenue dependence on United States: It derived 64.9%, 64.1%, 65.2%, 61.9% and 66.0% of its revenue from operations from the United States of America (USA) for the six months ended September 30, 2025, six months ended September 30, 2024, Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively. Its global operations involve challenges and risks that could increase its expenses, adversely affect its results of operations and require increased time and attention from its management. For example, the recent imposition of tariffs by the US government has prompted, and may prompt further counter-tariffs from other countries which could increase costs for entities in the USA and in other countries, disrupt supply chains, and adversely affect its revenue and profit margins.

Risk related to rapid technological changes: The company success depends on its ability to adapt to changes in client or market preferences and to adopt new technologies. Its industry is subject to rapid changes in technology, client requirements, competitive products, and industry standards. Its success depends on its ability to adapt to the latest technologies and offer advanced AI solutions to its clients, including without limitation, its ability to timely identify industry changes, adapt its strategies, and develop new or enhance and maintain existing products and technologies that meet the evolving needs of these markets, including due to unexpected changes in industry standards or disruptive technological innovation that could render its products incompatible with products developed by other companies. Its failure to do so could adversely affect its business and results of operations.

Exposure to foreign exchange risk and currency fluctuations: It is exposed to fluctuations of other currencies compared to its reporting currency for its Restated Consolidated Financial Information, Indian Rupees. Its clients are located across Americas, Europe and APAC and others, and it receives more than 70% of its revenue from operations each period/year in U.S dollars, and more than 90% of its revenue each period/year in currencies other than Indian Rupees (including U.S. dollars, pound sterling and euros). Exchange rate fluctuations may adversely affect its results of operations as a significant portion of its revenues are denominated in foreign currencies and may adversely affect the value of its Equity Shares.

Outlook

Fractal Analytics and its subsidiaries (the Group) is the leading provider of advanced analytics that helps companies leverage data driven insights in taking considered decisions. The analytics solution of Group helps companies to enhance profitability by powering their customer management efforts with scientific decision making. On the concern side, it faces ethical and reputational risks associated with the use of its AI (including Gen AI) technology and algorithms, and instances of negative publicity can affect its business, financial condition, results of operations and cash flows. Further, the development and use of AI, including Gen AI, requires it to retain skilled talent. If it fails to attract, retain, train and optimally utilize these professionals, or if there is an increase in employee costs, its business may be unable to grow and its results of operations and profitability could decline.

The issue has been offering 3,31,44,762 equity shares in a price band of Rs 857-900 per equity share. The aggregate size of the offer is around Rs 2840.51 crore to Rs 2983.03 crore based on lower and upper price band respectively. Minimum application is to be made for 16 shares and in multiples thereon, thereafter. On performance front, its total income increased by 25.6% to Rs 28,162 million in Fiscal 2025 from Rs 22,419 million in Fiscal 2024, primarily due to an increase in its revenue from operations by 25.9% to Rs 27,654 million in Fiscal 2025 from Rs 21,963 million in Fiscal 2024. Profit for the year was Rs 2,206 million in Fiscal 2025 compared to a loss of Rs 547 million in Fiscal 2024.

The company will continue to proactively innovate and invest to ensure it remains at the forefront of technological advancements, prepared to implement them as they become commercially viable for scale. This approach will allow it to enhance its value proposition for clients and align with their readiness and aspirations. Its strategy involves identifying emerging trends in AI, conducting fundamental AI research in areas such as Gen AI, quantum computing and computational neuroscience, developing new AI solutions and acquiring businesses to accelerate its capabilities. Its AI research team’s vision is to advance the frontiers of AI towards artificial general intelligence (AGI) by developing agentic systems that automate and augment tasks of varying complexity, enhancing both human and machine performance, through cutting-edge methods.

Fractal Analytics Share Price

879.30 9.70 (1.12%)
19-Feb-2026 10:05 View Price Chart
Peers
Company Name CMP
TCS 2741.70
Infosys 1398.50
HCL Tech. 1491.90
Wipro 213.95
Tech Mahindra 1518.45
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