--- title: "Fractal’s first US$100m quarter: revenue up 20%, half of that growth from currency" summary: "Fractal Analytics’ results for July to September: what the AI company sells, why currency explains half its 20% growth, and how small its own products still are." url: https://www.thetechbag.com/blog/fractal-first-100m-quarter-half-currency format: Note desk: "AI in the enterprise" region: India published: 2026-11-06 facts_checked: 2026-11-06 author: TechBag (The TechBag Journal) tags: ["Fractal Analytics","Fractal","earnings","enterprise AI","AI services","Cogentiq","agentic AI","constant currency","rupee","Asper.ai","Qure.ai","net revenue retention","healthcare","BFSI"] cover: https://www.thetechbag.com/blog/covers/fractal-first-100m-quarter-half-currency.png --- # Fractal’s first US$100m quarter: revenue up 20%, half of that growth from currency *Fractal Analytics’ results for July to September: what the AI company sells, why currency explains half its 20% growth, and how small its own products still are.* Note · AI in the enterprise · By TechBag · Published 2026-11-06 · Facts checked 2026-11-06 · Canonical: https://www.thetechbag.com/blog/fractal-first-100m-quarter-half-currency Fractal Analytics’ revenue passed US$100m in a quarter for the first time: ₹956.5 crore in July–September, up 20% on a year earlier. In constant currency, which strips out exchange-rate moves, growth was 10%.[1] So about half of the growth came from currency, by our arithmetic. Net income rose 139% to ₹79.2 crore.[1] The Mumbai company, which listed on the NSE and BSE on 16 February at ₹900 a share,[2] calls itself “an enterprise AI company that builds its own AI models, platforms and products for Fortune 500 organizations”.[1] +20% revenue growth in rupees, July–September Fractal +10% the same growth in constant currency Fractal 4% of revenue from Fractal's own products Fractal, on the call −18% revenue from technology, media and telecom clients Fractal ## What Fractal sells Mostly people. On the call on 4 November the chief financial officer, Shilpa Kedia, said 58% of revenue came from input-based engagements, billed for the people and time put in, and 42% from output- and outcome-based ones, “including 4% from products”. Products earned ₹38 crore in the quarter, and the portfolio runs at more than ₹150 crore a year, up 39%, the chief executive, Srikanth Velamakanni, said; contracted product revenue not yet recognised is over ₹200 crore.[4] The products are built on Cogentiq, its agentic AI platform, which clients also use directly (Cogentiq Invoice to Cash and Cogentiq CX are two).[4] A separate unit, Fractal Alpha (Asper.ai, revenue-management software for consumer-goods companies, and the edtech platform Analytics Vidhya),[1] earned ₹34 crore, up 40%, with an adjusted segment loss of ₹10 crore.[4] The target is far off. Asked about a goal of products reaching 20% of revenue, Velamakanni said “we aim to do roughly a $100 million run rate by the time, in about 12 quarters from now” and called it “a tall order”.[4] ## Why half the growth is currency Fractal bills 67.3% of its revenue in the Americas and 21.5% in Europe,[3] and reports in rupees. When the rupee weakens, the same dollar and euro invoices turn into more rupees. The weaker rupee also flattered margins: gross margin fell 225 basis points to 44%, after hiring AI engineers cost 279 points and annual pay rises 216, while “the weaker rupee provided a benefit of 270 basis points,” Kedia said.[4] Adjusted EBITDA margin rose 123 basis points to 16.2%.[4] TechBag countHow we got to half Revenue was ₹956.5 crore against ₹798.5 crore a year earlier, growth of 19.8%;[2] Fractal gives 10% in constant currency. The difference, about 10 points, is the currency effect: roughly half the reported growth. Fractal rounds both rates, so “half” is approximate. ## Which clients grew **Figure: Healthcare added about ₹106 crore of quarterly revenue in a year; technology and media clients cut about ₹38 crore** *Fractal revenue by client industry, ₹ crore, July–September 2025 and July–September 2026* | | Jul–Sep 2025 | Jul–Sep 2026 | Change | | --- | --- | --- | --- | | Consumer goods and retail | 299 | 332 | 11% | | Healthcare and life sciences | 134 | 240 | 79% | | Technology, media and telecom | 209 | 171 | -18% | | Banking, financial services, insurance | 100 | 130 | 30% | | Others (energy, travel, industrials) | 57 | 83 | 46% | Source: Fractal Analytics, Q2 FY27 investor presentation (slide 7) · as of 3 November 2026 · TechBag arithmetic from Fractal's shares of revenue and year-on-year growth by industry, so approximate. In rupees, including the currency effect. Healthcare and life sciences grew 79% and banking and insurance 30%. Consumer goods and retail, the largest industry at 34.7% of revenue, grew 11%, and revenue from technology, media and telecom clients fell 18%.[3] Velamakanni put the consumer slowdown down to “inflation and consolidation in this sector” and said technology, media and telecom “has bottomed out”, growing 6% on the previous quarter.[4] Existing clients spent more: in the main Fractal.ai business, net revenue retention was 115%, from 112% a year earlier, and 58 clients paid over US$1m a year, from 52. The ten largest clients’ share of revenue fell to 51.7% from 53.2%.[4] Excluding its share of losses at Qure.ai, the healthcare AI company it incubated and spun out, net income was ₹102.4 crore.[1][3] How we did this Figures as of 6 November 2026, 7pm IST Figures are consolidated, from Fractal’s results, presentation and press release filed with NSE and BSE, and its 4 November call. Fractal says revenue passed US$100m but gives no dollar figure; we do not convert. The currency share of growth and revenue by industry in rupees are our arithmetic on Fractal’s rounded rates and shares. Growth by industry and region is in rupees. The year-earlier quarter was not reviewed by the auditors. Spotted an error? Write to us; corrections are published at the foot of the piece. Sources 1. [Fractal Analytics, press release: Fractal delivers its first ever $100 million revenue quarter (Q2 FY27)](https://fractal.ai/docs/Investor-Relations/Financial-Statements-and-Annual-Reports/2027/Q2/Fractal-Press-release-Q2-27.pdf) — 3 November 2026 2. [Fractal Analytics, outcome of board meeting: unaudited consolidated results for the quarter to 30 September 2026, filed with NSE and BSE](https://nsearchives.nseindia.com/corporate/FRACTAL_03112026223034_Outcome_of_BM_03112026.pdf) — 3 November 2026 3. [Fractal Analytics, Q2 FY27 investor presentation, filed with NSE and BSE](https://nsearchives.nseindia.com/corporate/FRACTAL_04112026003956_Investor_Presentation_Intimation.pdf) — 4 November 2026 4. [Fractal Analytics, transcript of the Q2 FY27 earnings call (call of 4 November)](https://nsearchives.nseindia.com/corporate/FRACTAL_06112026123205_Earning_Call_Transcript.pdf) — 6 November 2026 **Disclosure.** TechBag is a software reseller: it earns a margin when a reader buys through it, including from vendors named here. The analysis is TechBag’s own; no vendor paid for or saw this piece before publication. Facts are labelled reported, TechBag count or our view. **Read this next:** [37% of firms see any profit from AI, 6% a real one, as agents spread](https://www.thetechbag.com/blog/ai-return-few-firms-see-profit) — The buyers’ side: 37% of firms see any profit from AI and 6% a real one, in McKinsey’s survey of 1,719 executives. 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