Fractal Analytics Ltd has announced its consolidated financial results for the first quarter of FY27 ended June 30, 2026, reporting higher revenue, improved profitability and continued momentum across key industry verticals.
The company reported consolidated operating revenue of Rs 912.5 crore in Q1 FY27, representing a 20% year-on-year (YoY) increase.
The Healthcare and Life Sciences (HLS) segment led the company’s growth, recording 69% YoY growth during the quarter. Sustained expansion in HLS over the past several quarters has made it the second-largest industry in Fractal’s portfolio.
The Banking, Financial Services and Insurance (BFSI) segment also delivered strong performance, growing 36% YoY in Q1 FY27.
Meanwhile, Consumer Packaged Goods and Retail (CPGR), the company’s largest industry segment, maintained its growth momentum with a 19% YoY increase. In contrast, the Technology, Media and Telecommunications (TMT) segment declined 22% YoY during the quarter.
Fractal continued to strengthen customer relationships, with clients increasing their spending on the company’s services. This resulted in a Net Revenue Retention (NRR) of 117% in Q1 FY27. The company also reported a Net Promoter Score (NPS) of 77 during the period.
The company improved profitability across all key metrics during the quarter. Gross Margin stood at 46%, while Adjusted EBITDA Margin expanded by 189 basis points YoY to 17%. Net Income increased 92% YoY to Rs 72.3 crore.
Commenting on the performance, 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’s Q1 FY27 performance reflects continued demand for AI-driven enterprise solutions, with strong growth in Healthcare and BFSI, expanding profit margins and rising customer engagement helping offset weakness in the TMT segment.
