Fractal Analytics Limited Earnings Summary — Q3 FY2026
Fractal Analytics Reports Q3 FY26 Financial Results Following Board Approval
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 7 consecutive quarters.
- Revenue of ₹913 Cr is 20.0% higher year-on-year.
- Revenue has compounded at 18.5% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹74 Cr is 97.9% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at -13.9% annualised across the period.
- Operating margin stands at 13.1% in Q1 FY2027.
- Operating margin expanded by 253 bps year-on-year.
- PBT margin is 10.7%.
- Expense growth of 16.6% remained below revenue growth of 20.0%.
- Operating profit of ₹120 Cr is 48.6% higher year-on-year.
- Operating leverage has been under pressure recently.
- 3 of the last 3 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 67/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2019 | Q1 FY2019 | Q4 FY2018 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 913 | 886 | 854 | 799 | 761 | 758 | 707 | — | — | — |
| Expenses | Improving | 793 | 713 | 745 | 724 | 680 | 635 | 622 | — | — | — |
| Operating Profit | Accelerating | 120 | 173 | 110 | 75 | 80 | 123 | 86 | — | — | — |
| Operating Margin | Accelerating | 13.1% | 19.5% | 12.9% | 9.4% | 10.6% | 16.2% | 12.1% | — | — | — |
| Other Income | Volatile | 27 | 20 | 2 | 16 | 14 | 9 | 50 | — | — | — |
| Interest | Stable | 9 | 13 | 11 | 12 | 12 | 11 | 10 | — | — | — |
| Depreciation | Improving | 40 | 37 | 36 | 34 | 30 | 34 | 24 | — | — | — |
| Profit Before Tax | Volatile | 97 | 143 | 65 | 46 | 53 | 86 | 102 | — | — | — |
| Tax | Volatile | 25 | 27 | -35 | 13 | 15 | 30 | 10 | — | — | — |
| Net Profit | Volatile | 74 | 118 | 103 | 34 | 38 | 55 | 93 | — | — | — |
| Net Margin | Volatile | 8.1% | 13.3% | 12.0% | 4.3% | 4.9% | 7.2% | 13.1% | — | — | — |
Key Takeaways
- Fractal Analytics Board approved unaudited consolidated financial results for the quarter ended December 31, 2025.
- The company maintains a strong secular growth trajectory with a reported 5-year revenue CAGR of 30% through its AI-as-a-service model.
- Operating performance has recovered significantly from historical losses, reaching an estimated 13% margin by the end of the fiscal year.
- The balance sheet was recently strengthened by an IPO, with cash and liquid investments reaching INR 1,238 Cr.
- Institutional ownership remains high at over 53%, providing external oversight despite a low promoter holding of approximately 17%.
- A key leadership transition is underway following the resignation of the Group CFO in July 2026, shortly after the IPO cycle.
Management Guidance
Management remains focused on institutional-grade data engineering and 'must-win clients' to maintain high Net Revenue Retention. The strategy centers on scaling Fractal Alpha and capturing enterprise AI adoption trends.
Sentiment Shift
Stable
The business has successfully transitioned from historical volatility to a high-margin, cash-flow positive model with a strengthening balance sheet.
Outlook
The company is positioned as an 'Emerging Compounder' in the enterprise AI space, with expectations for continued revenue momentum and margin stability in the 13% range.
From the Annual Report (Key Quotes)
“Approved the Unaudited Consolidated and Standalone Financial Results of the Company for the quarter and nine months ended December 31, 2025.”
“The business has demonstrated a sharp recovery in operating performance, with OPM expanding from -6% in FY23 to 13% by FY26.”
“The company serves a global clientele with a focus on institutional-grade data engineering and decision sciences.”
Official Quarterly Documents
Ask AI about this quarter
This summary is AI-generated from Fractal Analytics Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.