Fractal Analytics slips after Q1 PAT drops 38% QoQ to Rs 72 crore
On a year-on-year (YoY) basis, the company reported a 92% surge in consolidated net profit to Rs 72.3 crore, while revenue from operations increased 20% to Rs 912.5 crore in Q1 FY27 compared with Q1 FY26.
Consumer Packaged Goods and Retail (CPGR) continued to gather momentum, growing 19% YoY. On the other hand, TMT declined 22% YoY.
Fractal?s focus on deepening customer relationships continues to yield good outcomes. Its clients collectively increased their spending with the company, as reflected in the Net Revenue Retention (NRR) of 117% in Q1. Further, its Net Promoter Score (NPS) during the period stood at 77.
The company reported improved margins across all levels. Gross margin stood at 46% in Q1, while the adjusted EBITDA margin expanded 189 bps YoY to 17%. Net income surged 92% YoY to Rs 72.3 crore.
The company reported profit before exceptional items and tax of Rs 90.5 crore in Q1 FY27. It also recorded exceptional items of Rs 69 crore during the quarter.
Srikanth Velamakanni, Group CEO and executive vice chairman, said, ?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% year on year, which is a better read on the underlying demand we're seeing. As data sovereignty becomes a bigger priority for governments and enterprises, and as open-weight models keep improving, clients need a partner who can work across models and infrastructure. We have invested heavily in our people, our research, and our own intellectual property to be that partner.?
Fractal is a publicly listed global enterprise AI company with a vision to power every human decision in the enterprise.
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