Fractal Analytics targets 25–30% revenue growth on rising enterprise AI demand

Srikanth Velamakanni, Co-founder and Group CEO of Fractal Analytics, expects faster revenue growth as enterprise artificial intelligence (AI) adoption increases over the next two to three years. He said the company would aim to maintain revenue growth of about 25–30% if market opportunities continue.The company is preparing to launch its ₹2,834 crore initial public offering (IPO), which will open for subscription on February 8, 2026. The IPO price band has been fixed between ₹857 and ₹900 per share. The face value of each share is ₹1. Employees applying to the IPO will receive a discount of ₹85 per share.

Retail investors have 10% reservation in the issue and will need to invest at least ₹14,400 for one lot of 16 shares. About 75% of the issue is reserved for qualified institutional buyers.
Also Read | Fractal Analytics IPO – All you need to know about the ₹2,834 crore issueHe said enterprise AI adoption will drive its next phase of growth, even as global AI competition increases. According to him, the AI market is large and will support multiple companies. He said, “There’ll be multiple players, multiple winners.”

He said Fractal is focusing on enterprise AI, which involves applying AI models inside large companies to support decision-making.

Enterprise AI adoption has been slower than consumer AI adoption because company data systems are complex, he said.

He said, converting AI interest into real business performance remains a challenge across industries. Fractal is working to help companies use AI directly in decision systems. He said, “We are the disruptive force.”

On competition from global AI companies, Velamakanni said Fractal uses models from multiple providers along with its own systems. He said currently, there is no direct product competition from new AI tools. He said, “Not today.”Also Read | Hyundai Motor India plans to lift exports share to 30% of production by FY30

On profitability, Ashwath Bhat, CFO, Fractal Analytics, said margins are expected to improve as its enterprise AI platform Cogentic becomes a larger part of revenue.

Velamakanni said gross margins are currently around 46% and could move above 50% over time.

Velamakanni said its incubation platform Fractal Alpha is moving toward profitability and could break even within about one year.

The company is also increasing investment in research and development. Velamakanni said it spent about 6.1% of revenue on R&D in the first half of the financial year and expects this to increase further.

Velamakanni cited Palantir as a benchmark, highlighting its ability to increase revenue without significantly increasing headcount. Fractal aims to achieve a similar growth model as it expands operations.

For the full interview, watch the accompanying video

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