• Q4 financial performance: Fractal Analytics reported a 14.8% year-on-year rise in profit after tax to 117.8 crores, alongside a 529 bps margin expansion and 40% sequential EBITDA growth. Overall annual revenue grew 19%, though growth reached 27% when excluding the TMT segment.
• TMT vertical headwinds: The TMT segment declined 19% over the year due to two client-specific issues, including a client joint venture that reduced engagements and an enterprise software client undergoing internal reorganization.
• Vertical growth drivers: Healthcare and life sciences grew by 80% and banking and financial services rose by 40%, benefiting from AI adoption in drug discovery, process automation, and cognitive repetitive tasks.
• Net revenue retention: Existing client business expanded by 12%, resulting in a net revenue retention rate of 112%, aided by strong client relationships, high net promoter scores, and deployments of the Cogentic platform.
• Future earnings outlook: While the company does not provide specific FY27 guidance, management anticipates margin expansion and strong enterprise AI-driven growth despite broader macroeconomic headwinds.