This newly listed firm gains nearly 4%: Here is what analysts at Morgan Stanley, Goldman Sachs said

At 1 PM, the stock was trading at ₹816.10 per share on the National Stock Exchange, gaining 1.9%. Over a month’s time, the stock has fallen 2%.

In a regulatory filing on Monday, March 23, Fractal Analysts said as per the NCLT final and rectified order dated September 3, 2025, and September 23, 2025, “the equity share capital of Senseforth has been reduced from Rs. 26,27,88,470, comprising 2,62,78,847 fully paid-up equity shares of Rs. 10 each, to Rs. 2,62,88,270, comprising 26,28,827 fully paid-up equity shares of Rs. 10 each, by extinguishing in aggregate 2,36,50,020 fully paid-up equity shares of Rs. 10 each, amounting to Rs. 23,65,00,200.”

Here’s what analysts said about the firm

Analysts at Goldman Sachs, in a note on Tuesday, said Fractal Analytics is a pure-play data and analytics services company that builds customised solutions to help clients harmonise data, improve operational efficiency, and drive higher revenue. The company operates in a large and fragmented total addressable market (TAM) of about $328 billion, which has been steadily gaining share within enterprises’ IT services spending.

The analysts expect Fractal to deliver a strong 20% revenue CAGR over FY26–30E, translating into a 27% EBIT CAGR—both at the higher end of the Indian IT services peer group. However, they noted that the stock is currently trading at elevated valuations of 41x/31x FY27E/FY28E P/E, placing it at the premium end among Indian IT services companies.

Further, Morgan Stanley analysts view Fractal Analytics as a challenger in the technology services space. They highlighted its strong positioning in data and analytics—a segment growing faster than overall IT services spend—along with its platform-centric approach to delivering agentic AI services, which is expected to help the company’s revenue growth continue to outpace the industry.

They also expect improvement in gross margins, supported by operating leverage across other cost items, which could lift EBIT margins to around 15% and help narrow the gap with peers.

Fractal Analytics IPO

The scrip had debuted at ₹876 per share, a discount of 2.67% against the issue price of ₹900 apiece, on the NSE on February 16. The issue was subscribed to 2.66 times.

The ₹2,833.90 crore IPO was a fresh issuance of shares worth ₹1,023.50 crore and an offer for sale (OFS) of ₹1,810.40 crore by Venkateswara Remala, Satya Kumari Remala Rao, Quinag Bidco, GLM Family Trust, and TPG Fett Holdings Pte Ltd.

The objectives of the issue were investment in subsidiary Fractal USA for debt repayment, buying laptops, setting up new offices in India, investing in research and development, funding acquisitions and other strategic initiatives, supporting Fractal Alpha's sales and marketing, and general corporate purposes.

Fractal Analytics, which was co-founded by Srikanth Velamakanni and Pranay Agrawal in 2000, supports large global companies with data-driven insights. It helps them in decision-making via end-to-end artificial intelligence solutions.

It is a leading pure-play data and AI firm with domain expertise spanning across retail & consumer packaged goods, media and telecom, technology, banking, financial services and insurance, and healthcare and life sciences.

The company has served global enterprises, including Nvidia, Alphabet, Amazon, Microsoft, Meta, Apple and Tesla.

Fractal Analytics Q3 results

The company recorded a 10.56% surge in its consolidated profit after tax attributable to owners of the company at ₹102.6 crore in Q3 FY26, compared to ₹92.8 crore a year back.

Its revenue from operations advanced 20.81% to ₹854.4 crore in the December quarter of the current fiscal year as against ₹707.2 crore in Q3 FY25.

The growth was led by strong demand in the healthcare and life sciences segment, which expanded 78% year-on-year, and the banking and financial services segment, which grew 26% YoY.