Fractal Analytics Ltd management interview: Fractal Q1 Results LIVE | CEO Srikanth Velamakanni On 92% Profit Jump, AI Demand & Growth Outlook
Business Today, 2026-07-24. Video: https://www.youtube.com/watch?v=O2Q-V_It4kY
- Financial performance and targets: Q1 FY27 net profit rose 92% year-on-year to over ₹72 crore on 20% revenue growth, with management aiming to expand adjusted EBITDA margins from the current 17% to 20% overall and 22% for fractal.ai.
- TMT segment outlook: Revenue in the TMT vertical fell 22% year-on-year as major tech clients shifted spending from AI OpEx to AI CapEx, though sequential growth is expected to resume by Q2.
- Client expansion dynamics: Net revenue retention stood at 117%, with existing clients driving approximately 80% of revenue growth and 58 clients now generating over $1 million in annual revenue.
- R&D investment trajectory: R&D spending is currently tracking near 7% of revenue, with plans to scale investments up to 10% as gross margins expand.