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What is the story about?
Fractal Analytics has filed for an initial public offering (IPO)aggregating to ₹2,833.9 crore, comprising a fresh issue of ₹1,023.5 crore and an offer for sale worth ₹1,810.4 crore.
The IPO will open on February 9 and close on February 11, 2026.
The company's promoters are not selling any shares in the offer. The OFS will be led by existing investors, with Quinag Bidco Ltd, an Apax Partners entity, selling shares worth ₹880.9 crore, while TPG Fett Holdings Pte. Ltd. and the GLM Family Trust will each offload shares of up to ₹450 crore.
Other selling shareholders include Satya Kumari Remala and Rao Venkateswara Remala, who will sell shares worth ₹29.5 crore.
Key investors in the company include Apax Partners, TPG, GLM Family Trust, along with OLMO Capital, Gaja Capital and Whiteoak Group.
Founded in 2000, Fractal is positioned as India's first pure-play enterprise AI company.
The company has delivered a revenue CAGR of 18% between FY23 and FY25, with growth accelerating sharply in FY25 to 25.9%, compared with 10.6% in FY24.
Nearly 98% of revenue is derived from the core Fractal.ai segment, which focuses on long-term "must win clients" across industries.
The remaining revenue comes from Fractal Alpha, the company's innovation and incubation arm, which has been scaling rapidly with growth of 92.1% in FY24 and 76.4% in FY25, although it continues to be loss-making.
Fractal has steadily narrowed its losses over the years, reporting a loss of ₹61.6 crore in FY23, which reduced to ₹49.4 crore in FY24 and further to ₹28.3 crore in FY25, before shrinking to ₹6.6 crore in the first half of FY26.
While Fractal Alpha remains loss-making, it enjoys higher gross margins of 69.9% in FY25, compared with 45.3% for the core Fractal.ai business.
One of the key incubated entities, Qure.ai, has since become an independent associate company, with Fractal retaining an equity stake.
Geographically, the Americas continue to be Fractal's largest market, contributing around 66% of total revenue, followed by Europe at 21%, with the balance coming from APAC and other regions.
From an industry perspective, consumer packaged goods and retail remain the largest vertical, accounting for nearly 38-40% of revenue, while healthcare and life sciences has emerged as the fastest-growing segment, expanding from 11.1% of revenue in FY23 to 17% in H1 FY26.
The company spends about 6.1% of its revenue on R&D, while client concentration remains elevated, with the top 10 clients contributing 54.2% of revenue in FY25.
For FY25, Fractal reported an adjusted EBITDA of ₹4,821 million, higher than the reported EBITDA of ₹3,980 million, primarily due to ESOP-related expenses.
Proceeds from the fresh issue will be used for multiple purposes, including ₹264.9 crore towards repayment or prepayment of borrowings of its subsidiary Fractal USA, ₹57.1 crore for laptops, ₹121.1 crore for new office premises, ₹355.1 crore for R&D and sales and marketing initiatives, and funding inorganic acquisitions, details of which have not been specified.
The IPO will open on February 9 and close on February 11, 2026.
The company's promoters are not selling any shares in the offer. The OFS will be led by existing investors, with Quinag Bidco Ltd, an Apax Partners entity, selling shares worth ₹880.9 crore, while TPG Fett Holdings Pte. Ltd. and the GLM Family Trust will each offload shares of up to ₹450 crore.
Other selling shareholders include Satya Kumari Remala and Rao Venkateswara Remala, who will sell shares worth ₹29.5 crore.
Key investors in the company include Apax Partners, TPG, GLM Family Trust, along with OLMO Capital, Gaja Capital and Whiteoak Group.
Founded in 2000, Fractal is positioned as India's first pure-play enterprise AI company.
The company has delivered a revenue CAGR of 18% between FY23 and FY25, with growth accelerating sharply in FY25 to 25.9%, compared with 10.6% in FY24.
Nearly 98% of revenue is derived from the core Fractal.ai segment, which focuses on long-term "must win clients" across industries.
The remaining revenue comes from Fractal Alpha, the company's innovation and incubation arm, which has been scaling rapidly with growth of 92.1% in FY24 and 76.4% in FY25, although it continues to be loss-making.
Fractal has steadily narrowed its losses over the years, reporting a loss of ₹61.6 crore in FY23, which reduced to ₹49.4 crore in FY24 and further to ₹28.3 crore in FY25, before shrinking to ₹6.6 crore in the first half of FY26.
While Fractal Alpha remains loss-making, it enjoys higher gross margins of 69.9% in FY25, compared with 45.3% for the core Fractal.ai business.
One of the key incubated entities, Qure.ai, has since become an independent associate company, with Fractal retaining an equity stake.
Geographically, the Americas continue to be Fractal's largest market, contributing around 66% of total revenue, followed by Europe at 21%, with the balance coming from APAC and other regions.
From an industry perspective, consumer packaged goods and retail remain the largest vertical, accounting for nearly 38-40% of revenue, while healthcare and life sciences has emerged as the fastest-growing segment, expanding from 11.1% of revenue in FY23 to 17% in H1 FY26.
The company spends about 6.1% of its revenue on R&D, while client concentration remains elevated, with the top 10 clients contributing 54.2% of revenue in FY25.
For FY25, Fractal reported an adjusted EBITDA of ₹4,821 million, higher than the reported EBITDA of ₹3,980 million, primarily due to ESOP-related expenses.
Proceeds from the fresh issue will be used for multiple purposes, including ₹264.9 crore towards repayment or prepayment of borrowings of its subsidiary Fractal USA, ₹57.1 crore for laptops, ₹121.1 crore for new office premises, ₹355.1 crore for R&D and sales and marketing initiatives, and funding inorganic acquisitions, details of which have not been specified.
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