Repayment of borrowings of Fractal USA (Rs. 264.9 Cr.)
Purchase of laptops (Rs. 57.1 Cr.)
Setting up new office premises in India (Rs. 121.1 Cr.)
Investment in R&D and sales & marketing under Fractal Alpha (Rs. 355.1 Cr.)
Funding inorganic growth, acquisitions and general corporate purposes
The Offer for Sale aggregates up to Rs. 18,104 million. The company will not receive any proceeds from the Offer for Sale.
Financial Performance & Valuation
The company’s revenue grew at a CAGR of 18% and PAT at a CAGR of 6.53% between FY23 and FY25. A loss was reported in FY24 due to ESOP-related non-cash expenses.
Adjusted EBITDA Margin (FY25): 17.4%
Adjusted PAT Margin (FY25): 12.6%
Return on Net Worth (FY25): 12.5%
The IPO is valued at a P/BV of 7.76 based on a NAV of Rs. 116 and an implied P/E of approximately 109.12x based on FY26 annualized earnings, indicating aggressive pricing.
Risks to Consider
Cybersecurity threats and data breaches
Client concentration and retention risks
Demand volatility for AI solutions
Revenue concentration from the United States
Negative cash flows in previous years
Regulatory and foreign exchange risks
Our View – Should You Apply?
Fractal Analytics offers investors exposure to a rapidly growing AI and DAAI services segment with a strong global client base.
However, considering the elevated valuation, lack of listed peers, financial volatility, and sector-specific risks, the IPO appears suitable only for investors with a high-risk appetite and a long-term investment horizon.
Frequently Asked Questions (FAQs)
What does Fractal Analytics Limited do?
Fractal Analytics helps enterprises make better decisions using artificial intelligence, data and analytics across industries.
What is the price band and lot size?
The IPO price band is Rs. 857–900 per share with a lot size of 16 shares.
Is Fractal Analytics IPO profitable?
The company reported strong revenue growth, with a loss in FY24 due to ESOP-related expenses and improved profitability in FY25.
Who should invest in this IPO?
The IPO may be considered by investors with a high-risk profile and long-term investment horizon.
Brief Financials
| PARTICULARS |
₹ in Million |
As at
Sep 30, 2025 |
FY ‘25 |
FY ‘24 |
FY ‘23 |
| Total Income |
15,943 |
28,162 |
22,419 |
20,437 |
| Total Expenditure |
14,462 |
25,755 |
22,506 |
22,252 |
| EBITDA |
1,856 |
3,980 |
972 |
4,368 |
| Profit/(Loss) before Tax |
988 |
2,380 |
(305) |
3,134 |
| Profit/(Loss) after Tax |
709 |
2,206 |
(547) |
1,944 |
| E.P.S. (Diluted) |
4.09* |
13.36 |
(3.12) |
12.42 |
| P/E (x) (Diluted) |
- |
67 |
- |
- |
| RONW (%) |
3.6* |
12.6 |
(3.9) |
14.5 |
*Not annualised
PRICE CHART (@ ₹ 900) (Retail Category)
| LOT SIZE |
| Amount |
| 16 |
14,400 |
| 32 |
28,800 |
| 48 |
43,200 |
| 64 |
57,600 |
| 80 |
72,000 |
| 96 |
86,400 |
| 112 |
100,800 |
| 128 |
115,200 |
| 144 |
129,600 |
| 160 |
144,000 |
| 176 |
158,400 |
| 192 |
172,800 |
| 208 |
187,200 |
HNI Payment Chart
| Category |
| No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
224 |
201,600 |
| Big HNI |
1,120 |
1,008,000 |
Indicative Time Table
| Tentative Events |
| Indicative Dates |
| Finalisation of Basis of Allotment with the Designated Stock Exchange |
12/2/2026 |
| Initiation of refunds/unblocking ASBA Fund |
13/2/2026 |
| Credit of Equity Shares to demat accounts of Allottees |
13/2/2026 |
| Commencement of trading of the Equity Shares on the Stock Exchanges |
16/2/2026 |
Disclaimer:
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
