Fractal Analytics IPO Details : GMP, Issue Size And Valuation Risks

India’s First AI centric startup, Fractal Analytics, is coming with its IPO, announcing a price band of Rs 857 to Rs 900 per equity share to a face value of Re 1.

Founded in 2000, the company is headquartered in Mumbai and New York.

It is partnered with some of the world’s largest technology firms like Amazon, Google, Databricks, Microsoft and Alphabet.

Let's further explore in detail the IPO, its business model, and financials ahead.

Fractal Analytics IPO Details 

Fractal Analytics IPO Date: The subscription will start on February 9 and will close on February 11. Whereas allocation to anchor investors will take place on Feb 6, before the IPO opens to the public.

Fractal Analytics IPO price band: The price band has been fixed at Rs.857 to Rs.900 per share.

Fractal Analytics IPO size:  The issue size is Rs 2,833.90 crore.It is a mix of fresh issue and OFS, fresh issue of shares worth Rs 1,023.50 crore, along with an offer for sale (OFS) of Rs 1,810.40 crore by existing shareholders.

Fractal Analytics IPO GMP: Fractal Analytics’ unlisted shares are trading at about an 11% premium. This shows the expected listing price could be around Rs.1,005 per share.

Fractal Analytics Market Cap: The company is valued at around Rs 15,500 crore.

Fractal Analytics Financial Analysis

Source: Fractal AI

• Between FY24 and FY25, revenue grew 25.9% from Rs.21,963 million to Rs.27,654 million. This shows that demand for Fractal’s AI and analytics solutions is growing steadily across industries.

• EBITDA jumped 376% Y-O-Y, rising from Rs.734 million to Rs.3,499 million, improving efficiency as revenues grow.

• At the bottom line, the company reported a PAT of Rs.2,206 million in FY25, compared to a loss of Rs.547 million in FY24. This might happen due to better margin control and improved scalability of its business model. 

• The PAT margin is nearly 8% after a loss from the previous year, showing the company is moving toward stable profitability.

• Fractal moved from a loss last year to solid profits this year, with EPS rising to around Rs.72 from negative Rs.15.

This shows the company is now actually earning money per share, which is a big positive sign for investors.

How Does Fractal Generate Revenue?

The business model of Fractal Analytics Limited focuses on advanced analytics, machine learning and artificial intelligence (AI) solutions in order to help companies to get data-related insights. This helps them make better decisions and enhances profits.

The company works with clients through:

• Time and material contracts (billing based on effort and time spent)

• Fixed price projects (clear scope, fixed fees)

• Subscription models for its cloud-based AI software

While following this, Fractal generates both project income and recurring revenue.

Business Segments

1.    Fractal AI Segment
This is the core services arm. It provides AI consulting, builds custom AI solutions and develops specialised products by combining technology, design and industry expertise.

2.    Fractal Alpha Segment
This focuses on ready-to-use AI products. These are pre-built solutions developed from Fractal’s own intellectual property or acquired technologies. They require minimal customisation and can be deployed across industries.

Therefore, Fractal focuses on customised solutions and long-term partnerships.

Fractal Analytics Share Price Overview 

If you see the charts, Fractal Analytics unlisted shareearlier traded close to Rs. 1,900-Rs.2,000 but has now come down to around Rs.1,500.

While looking at financials previously, it tells a more positive side. In FY25, the company delivered solid revenue growth of about 26%. 

After posting losses earlier, Fractal generated a healthy profit, which pushed its Return on Equity (ROE) to roughly 11–12%. This shows the company is now generating reasonable returns on shareholders’ funds.

Franctal Analytics Valuation

If we look at valuation, the stock might have already run ahead of current profits. 

Based on FY25 earnings, Fractal trades at a very high P/E multiple (above 100x). This doesn’t mean the company is weak; it simply means the market is already pricing in a lot of future growth.

Hence, investors are not valuing Fractal for what it earns today, but for what they expect it to earn in the coming years as demand for AI and analytics keeps rising.

Overall, Fractal has improving fundamentals and a decent ROE, but the stock may trade at a premium valuation. Future performance will matter more than past growth in deciding where the share price goes next.

Fractal Analytics Operations And Projects 

Apart from financials, there are some reasons that one can look at:

1.    Fractal operates in 17 countries with offices across India and overseas. This helps in reducing dependency on any one market, while having global clients.

2.    The company consistently invests in research and development to improve its AI tools and software platforms. It also backs AI-focused associates like Qure.ai Technologies Private Limited, aligning with its long-term vision in healthcare AI and advanced analytics.

3.    Fractal measures customer satisfaction using tools like Net Promoter Score (NPS) and focuses on building long-term relationships rather than one-off deals.

4.    Wide Industry Reach: Its solutions are used across industries such as Retail, Financial Services, Healthcare, Technology, and Manufacturing. This diversification reduces business risk.

5.    ESG and Social Responsibility: Fractal is also working toward net zero emissions by 2040 and runs CSR initiatives like scholarships, assistive devices, water access projects and environmental programs.

Overall, it blends global reach, innovation and industry expertise to deliver practical AI solutions that solve real business problems.