Fractal Analytics IPO: Check IPO Date, Lot Size, Price & Details

Company Overview

Founded in 2000, Fractal is a globally recognised enterprise artificial intelligence (AI) company focused on enabling data-driven decision-making for large global enterprises. The company provides end-to-end AI solutions that span the full lifecycle of AI transformation, ranging from problem definition and solution design to deployment, adoption and scaling across the enterprise. Fractal integrates AI, engineering and design (AED) with deep domain and functional expertise to solve complex business problems and embed AI into core decision processes.

Business Segments

Fractal operates through two reportable segments:

1. AI
   This is the core operating segment and comprises:
   • AI Services: Consulting-led, bespoke AI and advanced analytics engagements across business functions.
   • AI Products: Software and platforms primarily hosted on Cogentiq, Fractal’s flagship agentic AI platform. Cogentiq enables enterprises to rapidly build, deploy and scale AI-powered applications using pre-built agents, tools, workflow builders, connectors and enterprise-grade governance, security and auditability features.
2. Fractal Alpha
   This segment comprises independent AI businesses, each operated under separate management. These businesses target Fractal’s core large enterprise clients (“Must Win Clients”) as well as new markets and geographies, allowing Fractal to incubate and scale newer AI-led offerings beyond its core services model.

Industries Served

Fractal serves enterprises across four primary industries:

• Consumer Packaged Goods & Retail (CPGR)
• Technology, Media & Telecom (TMT)
• Healthcare & Life Sciences (HLS)
• Banking, Financial Services & Insurance (BFSI)

These industries together account for the majority of Fractal.ai segment revenues. The company also has growing exposure to adjacent sectors such as energy, travel, industrials and automotive.

Geographic Presence

Fractal operates as a global company, with a substantial portion of its revenue derived from clients outside India. The company serves enterprises across North America, Europe, Asia-Pacific and the Middle East, while delivery capabilities are supported by a globally distributed workforce. A significant majority of revenues is denominated in foreign currencies, reflecting its international client base, such as Citibank (Citi), Costco, Nestlé, Mondelez, Mars, Franklin Templeton and Philips.

Capabilities and Platforms

Fractal’s core strength lies in its deep technical, domain and functional capabilities:

• Technical: GenAI, foundation models, machine learning, computer vision, conversational AI, MLOps and LLMOps, supported by robust data and cloud engineering.
• Functional: Sales & marketing, supply chain, finance & accounting, customer experience and digital analytics.

A key recent development is the build-out of Cogentiq, launched with early releases in 2025, positioning Fractal as an agentic AI platform provider rather than only a services-led AI company. The company has also invested in GenAI foundation models, responsible AI frameworks, R&D, patents and academic collaborations, strengthening its long-term technology moat.

IPO Details

Use of Funds

1. Investment in Fractal USA (Subsidiary) towards pre-payment and/or repayment of borrowings.
2. Purchase of laptops for operational requirements.
3. Setting up new office premises in India.
4. Investment in R&D and sales & marketing under Fractal Alpha.
5. Inorganic growth, strategic initiatives and general corporate purposes.

Key Strengths

• Marquee Global Client Relationships
  The Company has built deep, long-term relationships with marquee global enterprises across its core industries like CPGR, TMT, HLS and BFSI, resulting in a well-diversified and resilient revenue base. Its client roster includes leading global brands such as Citibank, Costco, Franklin Templeton, Mars, Mondelez, Nationwide, Nestlé and Philips. As of March 31, 2025, the Company worked with 10 of the top 20 CPG companies, 8 of the top 20 TMT companies, 10 of the top 20 HLS companies, 3 of the top 20 BFSI companies, and 5 of the top 20 retail companies, underscoring strong client penetration and sustained relevance across industries.
• Track record of innovation and sustained investment
  The Company has demonstrated a strong track record of inventing and investing to enhance client outcomes, supported by consistent allocation towards research and development. R&D investments have remained a steady proportion of revenue, underscoring a long-term commitment to innovation rather than cyclical spending. Research investments accounted for 6.1% of revenue in the six months ended September 30, 2025, compared with 5.2% in the corresponding prior period, and stood at 5.2%, 6.5% and 5.8% of revenue in Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. This sustained investment enables the Company to identify emerging AI trends, develop new solutions and continuously enhance its technology capabilities.
• Deep and integrated technical, domain and functional expertise
  The Company designs, builds and delivers end-to-end AI solutions by integrating deep technical, domain and functional expertise developed over more than 25 years of operations. Its technical capabilities span AI, engineering and design, enabling the translation of complex business problems into scalable, production-ready solutions. This is complemented by strong domain knowledge across CPGR, TMT, HLS and BFSI, and functional expertise across sales and marketing, supply chain, finance and customer experience. The integrated approach allows the Company to move beyond point solutions and act as a strategic AI partner, driving enterprise-wide adoption and measurable business impact.

Key Risks

• Cybersecurity and data security risks
  The Company’s operations rely extensively on digital infrastructure and the handling of sensitive client data. As a result, it is exposed to risks from security breaches, cyber-attacks, computer viruses and hacking activities, which could disrupt operations, compromise data integrity and lead to service interruptions. Any such incidents may result in financial losses, regulatory actions, contractual liabilities and reputational damage, adversely affecting client relationships and business performance. Despite existing security controls and protocols, the evolving nature of cyber threats increases the risk of unauthorised access or system failures, which could have a material adverse impact on the Company’s business, financial condition and results of operations.
• Client concentration and relationship risk
  The Company’s performance is significantly dependent on its ability to attract, retain and expand relationships with key clients. A substantial portion of revenue is derived from a concentrated client base, with the top 10 clients contributing 54.2% of Fractal.ai segment revenue, and the largest client accounting for 8.2%, in the six months ended September 30, 2025. Additionally, 79.6% of revenue was generated from existing “Must Win Clients” during the same period. Any inability to sustain or deepen these relationships, or to successfully onboard new large clients, could adversely impact the Company’s revenue growth, cash flows and overall financial performance.
• Industry concentration risk
  The Company derives a substantial portion of its revenue from a limited set of focus industries. In the six months ended September 30, 2025, consumer packaged goods and retail (37.5%), technology, media and telecom (27.2%), healthcare and life sciences (17.0%), and banking, financial services and insurance (12.2%) together accounted for the majority of revenue in the Fractal.ai segment. Any reduction in demand for AI solutions, adverse regulatory changes, or cyclical downturns in these industries could lead to lower client spending, which may have a material adverse impact on the Company’s business, financial condition and results of operations.

Financial Snapshot

Revenue Bifurcation

Conclusion

While the Company offers a differentiated positioning as India’s first listed pure-play enterprise AI player with strong long-term growth drivers, current valuation expectations, client concentration and execution risks limit near-term upside. Much of the medium-term growth appears priced in, making the risk-reward unfavourable at the offer price. We recommend avoiding the IPO and re-evaluating post-listing as valuation comfort and execution visibility improve.

IPO Allotment

Find out the allotment status for the Fractal Analytics IPO by checking its registrar's page.