Fractal Analytics profit almost doubles to Rs 74.2 crore in April-June

New Delhi, Jul 24 (PTI) Artificial intelligence firm Fractal Analytics on Friday said its consolidated profit surged by nearly twofold to Rs 74.2 crore in the first quarter of the current fiscal.

A year ago, the company had posted a profit of Rs 37.5 crore attributable to owners of the parent firm.

The consolidated revenue of Fractal Analytics grew by about 20 per cent to Rs 912.5 crore during the reported quarter from Rs 760.5 crore in the June 2025 quarter, according to a regulatory filing.

“Enterprises are putting real transformation budgets behind AI now, and we’re seeing it directly in the size of the deals coming to us. TMT was the drag on our headline growth this quarter. Excluding TMT, our business grew 35 per cent year on year, which is a better

read on the underlying demand we’re seeing,” Fractal Analytics Group CEO and Executive Vice-Chairman Srikanth Velamakanni said.

He said higher capex spending by TMT players in the US and Asia Pacific led to lower growth in the segment, but there are signs that the companies in this segment are now working to reduce capital and operational expenses.

In terms of geography, the Americas accounted for 67.4 per cent to the company’s total revenue during the reported quarter, followed by Europe with a 21.4 per cent contribution. The rest of the company’s revenue came from Asia Pacific and other regions.

The CPGR (consumer products goods and retail) segment was the biggest contributor to Fractal’s revenue with a 37.8 per cent share, followed by HLS (Healthcare and life sciences) with 23.5 per cent, TMT (Technology, Media & Telecom) with 18 per cent, and BFSI (Banking, financial services and Insurance) with a 13 per cent contribution.

“CPGR grew by about 19 per cent. It is still less than the overall growth rate of 20 per cent that we have. Banking and financial services as well as healthcare and life sciences have grown much more significantly. Healthcare and life sciences grew 69 per cent and BFSI 35 per cent,” Srikanth Velamakanni said.

He said every industry is seeing growth demand-wise because AI addressable spends are going up.

“Our (financial) result is not just a reflection of the market as much as it’s a reflection of how well we have done as teams we have executed. There are certainly some tailwinds, additional tailwinds in healthcare and life sciences, because they are process-intensive, complex industries, where AI is a huge lever to unlock profitability and growth and even patient care and satisfaction,” Velamakanni said.

Talking about employees, he said artificial intelligence is all about a high-quality workforce, and Fractal continues to push it further.

“Our total employees last year at the same time were 5,200. This year, the same is 6,000. Roughly, between 85 to 90 per cent of them will be in India locations, with a few of them in Ukraine. Rest of them would be all over the US and Europe, as well as Australia, Middle East and so on,” Velamakanni said. PTI PRS HVA