Fractal Analytics Reports Strong Q3FY26 Results with 21% Revenue Growth
Fractal Analytics delivered strong Q3FY26 results with revenue growing 21% YoY to ₹8.54 billion and adjusted EBITDA growing 24% YoY to ₹1.52 billion. The company achieved significant client expansion with 58 clients generating over $1 million and demonstrated technological leadership with AI products outperforming global benchmarks.
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Fractal Analytics Limited has announced its unaudited consolidated financial results for Q3FY26 ended December 31, 2025, demonstrating robust growth across key performance metrics. The data analytics and artificial intelligence company showcased strong operational performance with significant improvements in both revenue and profitability measures, crossing ₹1.00 billion in profit after tax.
Financial Performance Overview
The company's Q3FY26 consolidated results reflect strong business momentum with revenue reaching ₹8.54 billion, representing a 21% year-on-year growth. Profit after tax stood at ₹1.00 billion, while adjusted EBITDA outperformed revenue growth at 24% year-on-year to ₹1.52 billion. The company demonstrated enhanced operational efficiency with gross margin improving to 47.2%, an expansion of 0.2% year-on-year.
| Financial Metric: | Q3FY26 | Growth (%) |
|---|---|---|
| Revenue: | ₹8.54 billion | +21% YoY |
| Profit After Tax: | ₹1.00 billion | - |
| Adjusted EBITDA: | ₹1.52 billion | +24% YoY |
| Adjusted EBITDA Margin: | 17.8% | +0.4% YoY |
| Gross Margin: | 47.2% | +0.2% YoY |
Segment Performance and Client Growth
Growth was led by strong demand in the Healthcare and Life Sciences segment, which represents 20% of revenue and grew 78% year-on-year. The Banking and Financial Services segment, accounting for 12% of revenue, grew 26% year-on-year. The company further expanded its relationships with existing clients, resulting in a Net Revenue Retention of 114% in Q3FY26.
Client metrics showed significant expansion with the number of clients generating revenues upwards of $20 million increasing by 2 year-on-year to 6 clients. The number of clients generating more than $1 million increased by 8 year-on-year to 58 clients. Fractal's Net Promoter Score during the period stood at 77.
Product Innovation and Market Leadership
The company achieved significant technological milestones with its AI products beating global benchmarks. Vaidya.ai 2.0, the company's consumer-targeted AI-based health assistant, became the first AI model to achieve a 50+ score on OpenAI's HealthBench (Hard), outperforming ChatGPT-5, GPT-5.2 and Gemini Pro 3. PiEvolve, an evolutionary agentic engine designed for autonomous machine learning and scientific discovery, was ranked among the top-performing agents on OpenAI's MLE-Bench, outperforming agents from leading AI research labs including Google, Microsoft and Meta.
Corporate Developments
The Board of Directors approved these results in their meeting held on March 5, 2026. Group CEO and Executive Vice-Chairman Srikanth Velamakanni commented on the performance, stating that the company delivered a great quarter, improving across nearly every metric. He highlighted that their best-in-class organic growth, gross margins, and high client retention reflect the strength of their enterprise AI capabilities.
Summary
Fractal Analytics' Q3FY26 results demonstrate the company's ability to deliver consistent growth while maintaining strong profitability metrics. The 21% revenue growth coupled with 24% adjusted EBITDA growth reflects successful operational optimization and strategic focus on profitable growth initiatives across Healthcare, Life Sciences, and Banking segments.
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