Fractal Analyt. Q2 FY27 Results (NSE: FRACTAL)
Signal: Margin expansion
The read
The trajectory remains growth-positive, with revenue at ₹9,565 million, +19.8% YoY, and operating result at ₹1,501 million, but earnings quality is mixed: PAT of ₹792 million benefited from ₹69 million exceptional income and ₹288 million other income, while Fractal Alpha and the associate together contributed losses of ₹344 million.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹956.5 Cr | +19.8% | +4.8% |
| Net profit | ₹79.2 Cr | +138.6% | |
| EPS | ₹4.71 | +119.1% | |
| EBIT margin | 10.8% |
P&L walk
Revenue increased to ₹9,565 million, +19.8% YoY and +4.8% QoQ, while operating result rose to ₹1,501 million from ₹969 million YoY; PAT reached ₹792 million, but the bottom line was helped by ₹69 million of exceptional income and offset by a ₹232 million associate loss.
Segments
Fractal.ai drove the group with ₹9,361 million revenue and ₹1,613 million segment result, while the much smaller Fractal Alpha remained loss-making at ₹112 million on ₹340 million revenue, worsening from a ₹87 million loss YoY.
Key positives
- Revenue reached ₹9,565 million, growing 19.8% YoY and 4.8% QoQ, sustaining growth close to the prior quarter's 20.0% YoY pace.
- Operating result rose to ₹1,501 million from ₹969 million YoY, with employee cost growth of 15.0% below revenue growth of 19.8%.
- Finance costs declined 53.9% YoY to ₹53 million, reducing the drag below operating profit.
- Fractal.ai generated ₹1,613 million of segment result on ₹9,361 million revenue, making it the clear earnings engine.
Key concerns
- Fractal Alpha reported a ₹112 million segment loss on ₹340 million revenue, compared with a ₹87 million loss YoY, keeping the product and platform unit a material drag.
- H1 operating cash flow was negative ₹237 million despite H1 profit before tax of ₹2,006 million, while trade receivables rose to ₹8,429 million from ₹7,102 million at March 31, 2026.
- Depreciation rose 40.9% YoY to ₹472 million, faster than revenue growth, and EBIT margin was approximately 10.8%.
- Basic EPS growth of 119.1% lagged PAT growth of 138.6%, alongside paid-up share capital rising to ₹174 million from ₹142 million YoY.
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