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Fractal Analytics Limited IPO

Introduction:
Fractal Analytics Limited, formerly known as Fractal Communications Limited, is India’s leading pure-play enterprise data analytics and Artificial Intelligence (AI) company, founded in the year 2000. Headquartered in Mumbai, the company has over 25 years of global operating history and works as a trusted AI partner for large global enterprises, including several Fortune 500 companies. Fractal was co-founded by Srikanth Velamakanni (Whole-time Director and Group CEO) and Pranay Agrawal (Non-executive Director and CEO - Fractal USA), who have led the company since inception. As of September 2025, Fractal operates through 24 offices across nine countries, including the US, UK, and Australia.

What does Fractal Analytics do?
Fractal Analytics helps large enterprises make better business decisions using data, analytics, and AI. Instead of selling traditional software, Fractal embeds AI systems into client operations to support decision-making across areas such as customer behaviour analysis, pricing, marketing effectiveness, supply chain optimisation, product launches, and operational efficiency. The company primarily serves large global enterprises, referred to as “Must Win Clients” (MWCs), defined as companies with annual revenue above USD 10 billion, market capitalisation above USD 20 billion, or a customer base exceeding 30 million. As of September 30, 2025, Fractal served 122 such MWCs.

Business Segments
Fractal operates through two main segments:

Fractal.ai

This is the core business segment, comprising AI services and AI products. Fractal provides long-term AI-driven consulting and implementation services to enterprises, supported by its proprietary agentic AI platform, Cogentiq. Cogentiq works in the background, enabling faster deployment, governance, and scalability of AI solutions. Clients pay for ongoing AI-powered decision support rather than one-time software purchases.

Fractal Alpha
This segment consists of independent AI businesses that are either incubated or acquired by Fractal. Examples include Asper.ai, which focuses on revenue growth management for consumer packaged goods companies, and Analytics Vidhya, an AI and data science talent and learning community. These businesses operate independently and provide Fractal with long-term growth optionality beyond services.

Industry Exposure
Fractal serves multiple industries, with revenue contributions from:
  • CPGR (Consumer Packaged Goods & Retail)
  • TMT (Technology, Media & Telecommunications)
  • HLS (Healthcare & Lifesciences)
  • BFSI (Banking, Financial Services & Insurance)
This diversified industry exposure reduces dependency on any single sector while allowing deep domain expertise across verticals.

Industry Growth vs Company Growth
The global data analytics and AI industry is expected to grow at a CAGR of around 16.7%, while Fractal Analytics has delivered a higher revenue CAGR of 18.02%, indicating that the company is growing faster than the overall industry trend.

Financial Performance

For FY 2023 - FY 2025, Fractal reported:
  • Revenue CAGR: 18.02%
  • EBITDA CAGR: –4.54%
  • PAT CAGR: 6.53%
  • PBT CAGR: –12.85%
While revenue growth remains strong, pressure on margins and profitability indicates rising costs and investments, particularly in talent and AI infrastructure.

Key Risks






Valuation
Fractal Analytics is entering the market at a valuation level of:
  • Pre-IPO P/E: 65.5
  • Post-IPO P/E: 109.12
  • Price-to-Sales (P/S): 5.49
The company has stated that there are no directly comparable listed peers in India or globally operating under a similar pure-play enterprise AI business model, making traditional peer comparison difficult.



Objects of the Issue & IPO Details
The IPO proceeds are intended to support business growth, strengthen the balance sheet, and fund strategic initiatives, including investments in AI platforms and expansion of capabilities.

IPO Details