Fractal Analytics shares in focus after strong Q4; 'Must Win Client' base expands sequentially

Shares of Fractal Analytics Ltd. are in focus on Tuesday, May 12, after the company reported a positive set of earnings in the fourth quarter.

Its revenue increased 3.7% sequentially and 17% from the previous year to ₹886.3 crore. The company's profit after tax (PAT) came in at ₹115.6 crore, up 15.7% from the previous quarter and 109% from last year.

Its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was at 22% compared to 17.8% last quarter and 17.4% last fiscal. Its gross margins expanded by 47 basis points from the year-ago period to 48% in the fourth quarter.

For the entire financial year, the company's revenue increased 19% to ₹3,299.7 crore, while its PAT was up 30% at ₹286.8 crore. Its gross margins were up 93 basis points at 47% from the year-ago period.

Fractal Analytics' revenue per billable FTE in FY26 improved by 5% from the previous year to ₹75 lakh. It also deepened its "must win client" base, ending the year with 59 clients contributing over $1 million in annual revenue, compared to 53 at the end of FY25.

Its R&D investment was 6.4% of its revenue invested annually, peaking at 6.6% in the fourth quarter.

Here's a look at Fractal Analytics' industry vertical growth in Q4:

• Consumer packaged goods and retail: Up 11% compared to 14% in Q3


• Healthcare and life sciences: Up 82% compared to 78% in Q3.


• Technology, media and telecom: Down 19% compared to a 2% drop in Q3.


• Banking, financial services and insurance:
  Up 42% compared to 26% in Q3.


• Others: Up 33% compared to 48% in Q3.

Healthcare growth was driven by the launch and extension of Vaidya 2.0, a verticalised healthcare foundation model.

Here's a look at the company's geographical growth in Q4:Americas: Up 17%, decelerated from 26% in Q3.
Europe: Up 24%, slight deceleration from 26% in Q3.
Asia Pacific and others: Up 7%, recovered from a 6% decline in Q3.

Shares of Fractal Analytics ended the previous session 0.6% lower at ₹1,064.65 apiece. The stock has gained 25.3% in the past month, thereby surging past its issue price of ₹876.

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