Fractal Analytics plans to raise R&D to 10% of revenue (timing not specified in the source)
Fractal Analytics, a major player in the AI space, is upping its R and D investment from 6.5% to 10% of revenue as it gears up for stronger growth.
Co-founder Srikanth Velamakanni shared that TMT revenue in FY26 took a hit mainly because one client entered into a joint venture and sharply reduced engagement, while another went through reorganization and restructuring.
Fractal Analytics posts FY26 19% growth
Even with the TMT dip, Fractal still posted 19% overall growth for FY26, and if you leave out TMT, growth was actually a solid 27%.
The extra R and D cash will go into building smarter AI models and tools for businesses.
Fractal also plans to focus more on outcome-driven projects, which should make its margins and profits healthier going forward.
Fractal Analytics market cap ₹18,512cr
Fractal's market cap now stands at ₹18,512 crore after its shares jumped nearly 25% in just the last month. Investors clearly like where things are headed.
The company aims to cut back on input-based revenue over a roughly three-year horizon to boost margins even further.