Fractal Analytics IPO: Riding India’s AI and Data Analytics Growth Wave – Should You Subscribe?

Fractal Analytics IPO: Riding India’s AI and Data Analytics Growth Wave – Should You Subscribe?

Price band set at Rs 857–900 per share; IPO opens February 9, 2026, closes February 11, 2026, tentative listing February 16, 2026 (NSE & BSE)

Fractal Analytics Limited – IPO Note

IPO Snapshot (At-a-Glance)

Company Overview & Business Operations

Fractal Analytics Limited is a global artificial intelligence and advanced analytics company focused on delivering AI-powered decision intelligence solutions to enterprises. The company provides data science, machine learning, generative AI, and cloud-based analytics solutions across industries including Consumer, Financial Services, Healthcare, Retail, Technology, and Industrial sectors.

Fractal operates through three core platforms:

• Fractal Data & Analytics Services – Core enterprise AI and analytics consulting.
• Crux Intelligence – AI-driven decision intelligence and automated insights platform.
• Qure.ai – Healthcare AI platform focused on medical imaging and diagnostics.

The company serves 200+ global clients, including Fortune 500 enterprises, with a significant revenue contribution from North America. Fractal has built strong proprietary AI capabilities, domain expertise, and recurring client relationships, positioning it as a differentiated player in enterprise AI transformation.

Industry Outlook

The global AI and analytics services market is experiencing structural expansion driven by enterprise digital transformation, cloud adoption, automation, and generative AI deployment.

• Global AI market projected to grow at ~20–25% CAGR over the next five years.
• Enterprise spending on data analytics and AI platforms continues to scale across BFSI, healthcare, retail, and manufacturing.
• Increasing adoption of Generative AI, automation, and decision intelligence is shifting enterprises from traditional analytics toward AI-driven decision systems.
• India is emerging as a global hub for AI talent, digital engineering, and analytics outsourcing, supporting growth for domestic AI firms such as Fractal.

Fractal is well positioned to benefit from long-term enterprise AI adoption and increasing outsourcing of advanced analytics and AI transformation services.

Objects of the Issue

The Company proposes to utilise the Net Proceeds from the Issue towards the following objects:

> Investment in one of our Subsidiaries, Fractal USA, for pre-payment and/ or scheduled repayment, in full or in part, of its borrowings.

> Purchase of laptops

> Setting-up new office premises in India

> Investment in (a) research and development; and (b) sales and marketing under Fractal Alpha

> Funding inorganic growth through unidentified acquisitions and other strategic initiatives, and general corporate purposes

(OFS proceeds will go to selling shareholders.)

Financial Performance (₹ crore)

Strengths

• Pure-play AI and advanced analytics positioning with strong GenAI capability
• Diversified global client base with deep Fortune 500 penetration
• Scalable proprietary platforms (Crux Intelligence, Qure.ai)
• Strong revenue visibility with long-term enterprise relationships
• Improving margin profile and operating leverage

Key Risks

• High dependence on North American markets
• Competitive pressure from large IT services firms and global consulting companies
• Rapid technology evolution in AI/GenAI requiring sustained R&D investment
• Execution risk in scaling platform-led business model
• Valuation risk due to premium pricing

Outlook & Valuation

Avoid. We maintain an Avoid for Now stance and prefer to closely track the company’s post-listing execution and performance trajectory before taking a more constructive view. Fractal is strategically positioned at the intersection of AI, data, and enterprise digital transformation, benefiting from rising adoption of generative AI, decision intelligence platforms, and enterprise automation. Increasing platform monetisation and expansion in healthcare AI are expected to support sustained revenue growth and gradual margin improvement over the medium term. Post-IPO, valuation remains elevated (P/E ~109x vs ~65.5x pre-IPO), reflecting its positioning as a pure-play AI growth company rather than a traditional IT services player, supported by strong structural industry tailwinds. From a listing perspective, upside may remain measured given the premium pricing, with potential for steady value discovery rather than sharp near-term gains. Overall, the investment thesis is more compelling over the long term, making the offering suitable for investors seeking strategic exposure to the evolving AI growth cycle.