Shares of Fractal Analytics Ltd. were trading around 13% higher on Wednesday, November 4, after the artificial intelligence (AI) and analytics company reported its Q2 FY27 results, with quarterly revenue crossing the $100 million mark and net profit more than doubling year-on-year (YoY).
Fractal Analytics reported revenue of ₹956.5 crore for the September quarter, registering a growth of 19.8% compared with ₹798.5 crore in the corresponding quarter last year. On a quarter-on-quarter (QoQ) basis, revenue increased 4.8% from ₹912.5 crore.
The company’s constant-currency (CC) revenue growth stood at 10% YoY, improving from 9% in the preceding quarter.
Adjusted EBITDA margin expanded by 123 basis points YoY to 16.2%, compared with 15% in the year-ago quarter. However, on a sequential basis, the margin contracted by around 65 basis points from 16.8% in Q1 FY27.
Operating EBIT margin stood at 10.8%, expanding 281 basis points YoY, although it declined 54 basis points sequentially.
Fractal Analytics reported net profit of ₹79.2 crore for Q2 FY27, marking a 139% increase from ₹33.2 crore in the year-ago period. On a QoQ basis, net profit rose 9.5% from ₹72.3 crore.
The consumer goods and retail segment remained the largest contributor to revenue, accounting for 34.7% of the company’s overall revenue. The segment reported 11% YoY growth during the quarter.
Healthcare and life sciences recorded strong growth of 79% YoY, with its contribution to overall revenue increasing to 25.1%.
The banking, financial services and insurance (BFSI) segment reported 30% YoY growth, while the others category expanded 47%.
However, the technology, media and telecommunications (TMT) segment reported an 18% YoY decline in revenue.
Across geographies, the Americas remained the key growth market, with revenue increasing 22% YoY during the quarter.
Europe reported 20% YoY growth, while revenue from the Asia-Pacific (APAC) region increased 7%.
What Fractal Analytics management said
Commenting on the quarterly performance, the company’s management said that the rapid advancement of AI models and declining costs are likely to accelerate their adoption in critical business decision-making.
“AI models are getting more capable every week and cheaper every quarter. Within the next few quarters, we will cross a threshold where it becomes irresponsible and downright risky for companies to leave their most important decisions unchanged. We are building Fractal for that moment, and this quarter shows it: revenue crossed $100 million and net income more than doubled.”
Fractal Analytics shares jump 13% after Q2 profit more than doubles, topline crosses $100 million