Fractal Analytics IPO to open on Feb 9: Check business model, price band, and financials of this artificial intelligence firm

Fractal Analytics IPO: Artificial intelligence service provider Fractal Analytics is set to launch its much-awaited IPO on February 09, 2026.

Fractal Analytics helps large global businesses leverage artificial intelligence to improve their decision-making. The company has developed full-stack AI capabilities over the last 25 years by integrating technology, industry knowledge, and business expertise.

The company plans to raise ₹2,833.90 crore through its public issue through a combination of fresh issue and offer-for-sale.

Fractal Analytics operates through two parts: Fractal.ai, which offers AI services and AI products largely through its Cogentiq platform and Fractal Alpha, which is the home of smaller, independent AI businesses being incubated by the group.

The company mainly focuses on working with very large global companies that have more than US$10 billion in revenue, over US$20 billion in market value or have more than 3 crore customers. As of September 2025, the company had 122 such clients compared to 107 two years ago. Its clients are some of the biggest global names like Citi, Costco, Nestle, Mondelez, Mars, Philips, and Franklin Templeton.

Fractal Analytics IPO details

Fractal Analytics IPO aims to raise ₹2,833.90 crore through its public issue. Out of which ₹1,023.5 crore is a fresh issue and ₹1,810.40 crore is offer-for-sale.

The company has fixed the price band of the issue at ₹857 to ₹900 per share. The lot size, or the minimum bid quantity to apply for the issue, is 16 shares. This equates to a minimum investment amount of ₹14,400 per lot at the upper end of the price band for retail investors.

Fractal Analytics has appointed Kotak Mahindra Capital as the book-running lead manager of the IPO, while MUFG Intime India is the registrar for the issue.

Fractal Analytics IPO: Important dates

Fractal Analytics IPO will remain open for bidding from 09 to 11 February 2026. After the bidding is closed, the allotment of shares is expected to be finalised on February 12.

Successful bidders can expect the shares to be credited to their demat accounts by February 13, with others receiving refunds on the same day. Fractal Analytics shares are scheduled to list on the BSE and NSE on February 16.

Fractal Analytics IPO objective

Fractal Analytics Financial Snapshot

About the company

Fractal Analytics has business operations mainly in 4 major industries: consumer goods and retail, technology and telecom, healthcare and life sciences, and financial services. In H1FY26, consumer goods and retail contributed the most to revenue, followed by the technology and telecom sectors, then healthcare, and lastly, financial services. The majority of the company's business derives revenue from abroad.

In H1FY26, the Americas accounted for 2/3rd of the company’s revenue, followed by Europe and then Asia-Pacific. Around 92% of total revenue derives from foreign clients. The company has built strong relationships with its clients. Over the past years, the 10 largest clients, on average, have been working with Fractal for more than 8 years and together represent just more than 50% of the revenue. Customer feedback scores have been at a consistently high level over the last few years.

The company is significantly spending on its research and development. The company has developed in-house AI models for applications like medical imaging and image generation and has even open-sourced some of its work. As of Jan 2026, it has 28 and 376 registered patents and trademarks, respectively, with 38 and 104 pending.

The market for AI software is rapidly expanding. Its value was approximately $101 billion (INR ~8 lakh crore) in FY25, and it is projected to nearly triple to $283 billion (INR ~24 lakh crore) by FY30, increasing at a CAGR of 22.9%. This surge is due to companies buying ready-made AI software more and more rather than developing software from scratch internally, an increase in cloud usage, and innovations like GenAI and foundation models that are making AI friendlier to users. Additionally, AI use cases in areas like sales, marketing, supply chain, finance, and IT are becoming standard products rather than one-off projects.

Risks and Threats

• High revenue concentration in the US: Fractal's top-line revenue is largely derived from the US market. In FY26, FY25, FY25, and FY24, the US accounted for 64.9%, 64.1%, 65.2%, and 61.9% of total revenue from operations, respectively. Therefore, a sharp decline in the US economy or a negative perception of outsourcing in the US would have a significant effect on the company's finances.
• History of negative cash flows: Fractal reported positive cash flows of ₹159.5 crore in FY24 and ₹397.0 crore in FY25, following negative operating cash flows of ₹30.6 crore in FY23. However, with negative cash flows of ₹124.2 crore to PPE and intangibles in 6M FY26, the company has been characterised by high capital expenditure and investment intensity. In addition to increasing reliance on outside funding, persistently negative cash flows may have an effect on growth and liquidity.
• Dependence on top‑10 clients: In the Fractal.ai sector, the company's top 10 clients generated 54.2% of its operating revenue in 6MFY26, with one client accounting for 8.2%. Furthermore, 79.6% of Fractal.ai's revenue during the same time period came from existing MWCs, underscoring the business's heavy reliance on a limited customer base. The loss or repricing of a few key clients could have a significant impact on growth and profitability.

Strengths and Opportunities

• Strong global client relationships: In terms of revenue as of FY25, the company served 10 of the top 20 global CPG companies, 8 of the top 20 TMT companies, and 10 of the top 20 healthcare companies. Its varied clientele not only reduces the risk of concentration but also makes it possible to cross-sell AI products across sectors and geographical areas. Additionally, the fact that foreign clients accounted for 92.4% of H1FY26 revenue and 91.6% of FY25 revenue demonstrated Fractal's scalability and global relevance.
• Exposure to a global AI market: Fractal Analytics operates as a pure-play Data, Analytics, and AI (DAAI) company in a market valued at ₹12 lakh crore in FY25 and projected to reach ₹23 lakh crore by FY30 at a CAGR of 16.7%. The company is the preferred partner for businesses wishing to combine their providers due to its capacity to offer end-to-end AI solutions. From FY23 to FY25, Fractal Analytics revenue increased at a CAGR of 18.0%, greatly exceeding the ~11% CAGR of the global third-party DAAI industry.
• Strong track record of innovation: Innovation is a crucial part of the company’s business strategy since the company consistently invests in R&D. During H1FY26, the company spent ₹143.6 crore on research and development, concentrating on Gen AI, machine vision, NLP, and agentic AI systems. Fractal had 38 patent applications and 28 granted patents as of January 2026. The company's flagship platforms, like Cogentiq and Kalaido.ai, show how it can apply its knowledge of research to develop AI solutions for commercial use.