Fractal Analytics Limited has received a Draft Assessment Order from the Income Tax Department for Assessment Year 2023-24, proposing significant additions totaling INR 156.56 crore. The company disclosed this development under Regulation 30 of SEBI Listing Regulations on March 26, 2026.

Draft Assessment Order Details

The Income Tax Department issued the Draft Assessment Order dated March 24, 2026, under section 144C(1) of the Income Tax Act, 1961. The order covers the Financial Year 2022-23 (Assessment Year 2023-24) and was received by the company after business hours on March 24, 2026.

Nature of Proposed Adjustments

The Draft Assessment Order proposes additions on account of certain transfer pricing and corporate tax adjustments. The company has clarified that since this is a draft order, there is no immediate tax demand payable. Any demand will only be crystallized after the receipt of the final assessment order.

Regulatory Implications and Penalties

According to the Draft Order, penalty proceedings under section 270A of the Income Tax Act will be initiated separately for under-reporting of income. However, no specific penalty amount has been quantified at this stage.

Company's Response Strategy

Fractal Analytics has outlined its action plan in response to the Draft Assessment Order:

• The company will file objections before the Dispute Resolution Panel
• Management is currently evaluating the contents of the draft order
• The disclosure has been made available on the company's investor relations website

Financial Impact Assessment

The company has stated that there are no immediate financial implications since this is a draft order. The actual financial impact will depend on the final assessment order and the outcome of the dispute resolution process. The company received the order after business hours, which caused a delay in the regulatory disclosure to stock exchanges.

Compliance and Disclosure

The disclosure was made pursuant to Regulation 30 of SEBI Listing Regulations and includes detailed annexures as required under the Master circular dated January 30, 2026. Company Secretary and Compliance Officer Somya Agarwal signed the disclosure on behalf of the company.

Fractal Analytics Limited has secured a CDP 'B' rating for 2025, marking the third consecutive year the global enterprise AI company has received recognition for its climate action governance and emissions management practices. The achievement underscores the company's commitment to environmental sustainability and transparent reporting across its worldwide operations.

CDP Assessment and Global Recognition

CDP, recognized as a leading environmental emissions reporting platform globally, assessed more than 24,800 companies worldwide in 2024. The comprehensive benchmarking process evaluates corporate climate action by measuring and disclosing greenhouse gas emissions, creating datasets that enable investors, policymakers, and stakeholders to assess progress, risks, and opportunities.

A CDP rating of 'B' reflects coordinated management of climate-related impact, risks, and opportunities, along with demonstrated evidence of actions associated with good environmental management.

Environmental Management and Carbon Accounting

Fractal Analytics has established robust environmental reporting processes, practicing carbon accounting for six fiscal years. The company maintains a greenhouse gas inventory in accordance with the GHG Protocol Corporate Standard and has obtained third-party assurance for its Scope 1, 2, and 3 emissions following the AA1000AS standard at moderate level assurance.

Chetana Kumar, Chief Sustainability Officer at Fractal, emphasized that the company's disclosure through CDP demonstrates rigour in environmental emissions reporting and strengthens accountability to stakeholders. The approach reinforces the importance of measuring and monitoring emissions as a foundation for meaningful climate action.

Sustainable Infrastructure and Certifications

As part of its Net Zero journey, Fractal Analytics continues to strengthen processes by acquiring independently assessed third-party credentials. The company's offices in Mumbai and Bengaluru are Leadership in Energy and Environmental Design (LEED) Gold certified workspaces, focusing on resource conservation and responsible waste management.

The Mumbai office has achieved WELL platinum certification, demonstrating dedication to the health and well-being of office occupants and visitors. These commitments align with United Nations Sustainable Development Goal 13 on climate action.

Strategic Integration and Business Impact

The integration of environmental sustainability into Fractal Analytics' business strategy supports lowering carbon footprint while creating resilient operations. This approach enables the company to support clients in meeting their own climate action and responsible AI goals, reinforcing the connection between environmental stewardship and business excellence.

Fractal Analytics operates as a publicly listed global enterprise AI company serving Fortune 500 organizations, with over 5,000 professionals across locations including the United States, Canada, the UK, the Netherlands, Ukraine, India, Singapore, South Africa, the UAE, and Australia.