Fractal Analytics IPO: India’s First Pure-Play AI Powerhouse Goes Public
Fractal Analytics, a global leader in artificial intelligence and decision sciences, has officially set its IPO price band at ₹857 to ₹900 per share. With the issue opening on February 9, 2026, this ₹2,834 crore IPO marks a landmark moment for India’s deep-tech sector. Read the full financial analysis, GMP updates, and strategic growth plans for this "Magnificent 7" partner.
Live IPO Tracking Available
Check live GMP, allotment status, and deep analysis for this IPO.
1. Business Overview: Deciphering the AI Giant
Founded in 2000, Fractal Analytics has evolved into one of the world's most prominent enterprise AI firms. Unlike traditional IT service companies, Fractal focuses exclusively on Decision Intelligence—using data to help Fortune 500 companies make smarter, automated decisions.
Operating Segments:
Fractal.ai: The core services arm that provides AI engineering and decision science to global leaders like Microsoft, Google, Nvidia, and Apple.
Fractal Alpha: An innovation incubator for specialized AI products like Asper.ai (revenue growth management), Senseforth.ai (conversational AI), and Eugenie.ai (sustainability AI).
Global Reach: Over 65% of revenue is generated from the United States, with a significant portion coming from "Magnificent 7" tech giants.
2. Key IPO Snapshot & Timelines (Updated Feb 4, 2026)
The company significantly trimmed its issue size by 40% (from the initially planned ₹4,900 Cr) to ensure a more sustainable valuation in current market conditions.
| Event / Detail | Information |
|---|---|
| Bidding Period | Monday, Feb 9 – Wednesday, Feb 11, 2026 |
| Price Band | ₹857 to ₹900 per share |
| Market Lot Size | 16 Shares |
| Min. Retail Investment | ₹14,400 (16 Shares) |
| Total Issue Size | ₹2,833.90 Crore (Fresh: ₹1,023.5 Cr + OFS: ₹1,810.4 Cr) |
| Anchor Bidding | Friday, February 6, 2026 |
| Allotment Finalization | Thursday, February 12, 2026 |
| Listing Date | Monday, February 16, 2026 |
3. Financial Highlights: A Profitable Turnaround
After a challenging FY24, Fractal has demonstrated a robust recovery in FY25:
Revenue Growth: Climbed 26% YoY to ₹2,765 crore in FY25.
Profitability Turnaround: Swung from a net loss of ₹55 crore (FY24) to a Net Profit of ₹221 crore (FY25).
H1 FY26 Performance: For the first half of the current year (ending Sept 2025), revenue stands at ₹1,594 crore with a PAT of ₹71 crore.
Subscription Growth: Their high-margin subscription income (from Fractal Alpha) surged 167% in the last year, signaling a successful shift toward product-led revenue.
4. Grey Market Premium (GMP) & Sentiment
As of today, February 4, 2026, the Grey Market Premium (GMP) for Fractal Analytics is ₹180.
Listing View: This suggests a 20% listing gain, with shares trading unofficially around ₹1,080.
Valuation: At the upper price band of ₹900, the company is valued at roughly ₹14,450 crore. Its P/E ratio is approximately 27-30x based on FY25 earnings, which is considered highly competitive compared to global AI peers.
5. Strategic "Use of Proceeds"
Debt Reduction (₹265 Cr): Repaying debt at its US subsidiary to strengthen the global balance sheet.
Infrastructure (₹178 Cr): Investing in over 5,000 new laptops and setting up state-of-the-art AI labs and offices in India.
GenAI R&D (₹355 Cr): Specifically allocated for Generative AI and research under the Fractal Alpha umbrella.
6. Investment Analysis: The Verdict
Strengths:
AI Pure-Play: First listed Indian company with 100% focus on AI/Analytics (unlike TCS/Infosys).
Blue-Chip Clients: Deeply embedded with global tech leaders who are the primary spenders in the AI race.
High Retention: Over 90% recurring revenue from existing clients.
Risks:
Concentration: Top 10 clients contribute ~54% of revenue.
Talent War: The high cost of retaining top-tier AI researchers could impact future margins.