Fractal Analytics IPO: A Deep Dive into the AI Giant's Market Debut
Your Trusted Source for Public Listing Insights
Decoding the Fractal Analytics IPO: Opportunity in Enterprise AI
The Indian capital markets are buzzing with the upcoming Initial Public Offering (IPO) of Fractal Analytics Ltd., a significant player in the global Enterprise AI and analytics space. For investors looking to capitalize on the accelerating digital transformation wave, this IPO presents a compelling opportunity to gain exposure to a high-growth sector. This comprehensive analysis breaks down everything you need to know about Fractal Analytics' public offering, from the company's core business to the critical dates and financial metrics.
Partnering for Success:
Understanding Fractal Analytics: AI for Intelligent Decisions
Fractal Analytics, established in the year 2000, has carved a niche as a leading global firm specializing in Artificial Intelligence and advanced analytics solutions. They partner with Fortune 500 companies to embed intelligence into their operations, enabling smarter, data-driven decisions.
Business Segments and Core Offerings
As of the latest reporting period (Sep 30, 2025), Fractal structures its robust offerings across two primary divisions:
Fractal.ai: This segment focuses on delivering AI services and products via its proprietary agentic AI platform, Cogentiq. This platform emphasizes streamlined product development through built-in governance, low-code accessibility, and robust security features.
Fractal Alpha: This division manages standalone AI businesses aimed at capturing high-growth markets. These are run independently to foster innovation across diverse industries and global geographies.
Competitive Edge in the AI Landscape
The company highlights several key strengths that position it favorably in the competitive AI market:
Leadership in a rapidly expanding global AI market.
Deep, enduring relationships with prominent, blue-chip global clients, ensuring revenue diversification.
A potent combination of integrated technical, functional, and domain expertise.
A proven history of innovation and strategic investment benefiting clientele.
A management philosophy centered on transparency, trust, and nurturing talent, driven by experienced founders with a long-term vision.
Major clients leveraging Fractal's expertise include well-known names like Citibank (Citi), Costco, Mondelez, Nestle, and Philips, among others.
Fractal Analytics IPO: Key Subscription Details
The Fractal Analytics IPO is structured as a Book Building issue, involving both a Fresh Issue of shares and an Offer For Sale (OFS). This dual structure indicates a capital infusion for the company's growth plans alongside an opportunity for existing shareholders to partially divest.
The Financial Snapshot: IPO Structure and Size
The total IPO size aggregates up to ₹2,833.90 Crores, comprising a Fresh Issue of approximately ₹1,023.50 Crores and an Offer for Sale of around ₹1,810.40 Crores.
Metric
Details
Issue Type
Bookbuilding IPO
Total Issue Size
3,14,87,777 Shares (Agg. up to ₹2,834 Cr)
Fresh Issue Size
1,13,72,222 Shares (Agg. up to ₹1,023 Cr)
Offer for Sale (OFS) Size
2,01,15,555 Shares (Agg. up to ₹1,810 Cr)
Price Band
₹857 to ₹900 per Equity Share
Face Value
₹1 per share
Listing Exchanges
BSE and NSE
IPO Timeline: Marking Your Calendar
It is crucial to adhere to the tentative schedule for bidding and allotment processes. Remember, the dates provided are based on the initial filings.
Activity
Tentative Date
IPO Opens for Subscription
Monday, February 9, 2026
IPO Closes for Subscription
Wednesday, February 11, 2026
Basis of Allotment Finalization
Thursday, February 12, 2026
Initiation of Refunds / Credit to Demat
Friday, February 13, 2026
Tentative Listing Date
Monday, February 16, 2026
For a visual representation of the IPO process flow:
Open (Feb 9)
Close (Feb 11)
Allotment (Feb 12)
Credit/Refund (Feb 13)
Listing (Feb 16)
Investment Requirements: Understanding Lot Sizes
Investment requirements vary based on the category of investor. The minimum investment anchors around the upper price band of ₹900 per share.
Investor Category
Lots Applied
Shares
Minimum Investment (Approx.)
Retail Individual Investor (RII)
1 (Minimum)
16
₹14,400
S-HNI (Up to ₹10 Lakhs)
14 (Minimum)
224
₹2,01,600
B-HNI (Above ₹10 Lakhs)
70 (Minimum)
1,120
₹10,08,000
Note: Retail investors are eligible to bid up to a maximum investment of ₹2 Lakhs, while employees receive a special discount, often capped at an application amount of ₹5 Lakhs.
Valuation and Financial Health Assessment
Evaluating the company's financial health and valuation multiples is crucial before committing capital. The pre-IPO valuation suggests a premium positioning given its AI focus.
Company Financial Performance (Restated Consolidated)
Here is a summary of the key financial figures (Amounts in ₹ Crore):
Financial Metric
30 Sep 2025
31 Mar 2025
31 Mar 2024
31 Mar 2023
Total Income
1,594.30
2,816.20
2,241.90
2,043.70
Profit After Tax (PAT)
70.90
220.60
-54.70 (Loss)
194.40
EBITDA
185.60
398.00
97.20
436.80
Total Borrowing
274.60
266.20
250.10
325.60
Key Performance Indicators (KPIs) Check
Analyzing profitability margins provides insight into operational efficiency:
KPI
Sep 30, 2025
Mar 31, 2025
Return on Net Worth (RoNW)
3.6%
12.6%
PAT Margin
4.50%
8.00%
EBITDA Margin
11.90%
14.40%
Valuation Metrics Comparison
The valuation metrics post-IPO highlight market perception relative to earnings:
Metric
Pre-IPO EPS (Rs)
Post-IPO EPS (Rs)
P/E Ratio (x)
Valuation
13.74
8.25
65.51 (Pre) / 109.12 (Post)
The calculated Price-to-Book Value post-IPO stands at 8.65x.
Ownership Structure and Promoters
The promoter group holds a significant stake, indicating strong promoter confidence in the future prospects.
Promoter Holding Pre-Issue: 18.19%
Post-Issue Market Capitalization: Approximately ₹15,473.60 Cr.
Founders: The company is steered by experienced founders, including Srikanth Velamakanni, Pranay Agrawal, Chetana Kumar, Narendra Kumar Agrawal, and Rupa Krishnan Agrawal.
IPO Objectives: Where the Proceeds Go
Understanding the use of the Net Proceeds is vital for assessing management's strategic focus. The funds are earmarked for both domestic expansion and international debt management.
Object of the Issue
Estimated Amount (₹ Cr.)
Pre-payment/Repayment of Borrowings (Fractal USA Subsidiary)
264.90
Setting-up New Office Premises in India
121.10
Investment in R&D and Sales/Marketing (Fractal Alpha)
355.10
Purchase of Laptops
57.10
Inorganic Growth, Strategic Initiatives, and General Corp. Purposes
To be determined
Stakeholder Ecosystem: Key Intermediaries
The success and smooth functioning of an IPO rely heavily on the expertise of its advisors and administrative bodies.
Book Running Lead Managers (BRLMs): Kotak Mahindra Capital Co. Ltd. and Axis Capital Ltd. will oversee the issue management.
Registrar to the Issue: MUFG Intime India Pvt. Ltd. is appointed to handle the administrative tasks, allotment, and refund processing.
SWOT Analysis of Fractal Analytics IPO
A balanced perspective requires an assessment of the company's inherent Strengths, Weaknesses, Opportunities, and Threats related to this market entry.
Strengths
Strong brand equity and long-term client retention.
Deep integration of technical skills with essential business domain knowledge.
Founder-led structure focusing on long-term value creation.
Weaknesses
Recent fluctuation in PAT margin (as seen between Mar 2025 and Sep 2025).
Moderate promoter holding pre-issue, though this changes post-IPO.
Opportunities
Vast potential for expansion in global AI adoption across all sectors.
Funding secured for inorganic growth and new market penetration.
Threats
Intense competition from established global tech giants and specialized AI startups.
Rapid technological obsolescence necessitating continuous heavy R&D investment.
Global economic shifts impacting corporate IT and analytics spending.
Navigating the Application Process: Guidance for Retail Investors
If you plan to participate, the application process is simplified through digital methods like UPI or ASBA. For those using a popular discount broker like Zerodha, the steps involve familiarizing oneself with their dedicated IPO console.
Applying via a Brokerage Platform (Example: Zerodha Users)
Log in to your broker’s back-office portal (e.g., Console).
Navigate to the 'IPOs' section in your portfolio.
Locate the 'Fractal Analytics IPO' row and select the 'Bid' option.
Input your UPI ID, the required quantity (minimum 16 shares), and bid price.
Submit the application and ensure you approve the UPI mandate within your UPI application promptly.
It is generally advised for RIIs to apply at the cut-off price to maximize allotment chances within their budget.
Contact Information & Next Steps
For direct reference to regulatory documents or official communication:
Entity
Contact Detail
Registrar Phone
+91-22-4918 6270
Registrar Email
fractal.ipo@in.mpms.mufg.com
Company Contact (Investor Relations)
investorrelations@fractal.ai
Company Address
Level 7, Commerz II, International Business Park, Oberoi Garden City, Off W. E. Highway, Goregaon (E), Mumbai, Maharashtra, 400063
Conclusion: Weighing the AI Future
The Fractal Analytics IPO offers investors a chance to invest in a seasoned enterprise AI firm navigating a monumental growth phase. The company's strong client base and strategic deployment of IPO proceeds towards R&D and expansion suggest future scalability. While the valuation reflects the premium associated with disruptive technology, a thorough review of the subscription status closer to the closing date, alongside market sentiment, will provide the final clarity needed for an informed investment decision.
