IPOName: Fractal Analytics Limited; ListingDate: Feb 16, 2026; IPOSize: ₹2,833.90 Cr; PriceBand: ₹857 - ₹900; OpenDate: Feb 9, 2026; CloseDate: Feb 11, 2026; LotSize: 16; Exchange: NSE, BSE; IssueType: Book Built; FaceValue: ₹1; Registrar: MUFG Intime India;
I am a Senior Research Analyst, but I am NOT SEBI Registered. This report is for educational purposes only. Equity investment is subject to market risks. Read the RHP (Red Herring Prospectus) carefully before investing.
Fractal Analytics IPO Review: Is the Premium AI Valuation Justified?
The Fractal Analytics IPO is arguably one of the most watched events on Dalal Street this quarter, marking the entry of India's first true "AI & Decision Intelligence" pure-play into the public markets. With a price band of ₹857 to ₹900 per share, the company is targeting a massive valuation, banking on its deep relationships with Fortune 500 clients. But does the financial data support the hype?
As investors scan the Upcoming IPO List, Fractal stands out not just for its sector, but for its ambition. This review dissects the company's fundamentals, the steep P/E multiple, and whether the current GMP signals a buying opportunity.
Business Analysis: The "Decision Intelligence" Moat
Fractal Analytics isn't a typical IT services firm. It operates in the high-value niche of "Decision Intelligence," helping global enterprises (including Google, Wells Fargo, and P&G) automate complex business decisions using AI. Their revenue model is robust, driven by:
- Dual-Engine Growth: The core services business (Fractal.ai) provides cash flow, while the product incubation wing (Fractal Alpha) builds high-growth assets like Qure.ai (Healthcare AI).
- Client Stickiness: A key metric for analysts is the Net Retention Rate (NRR), which stands at an impressive ~120%. This means existing clients are spending more year-on-year.
- Revenue Concentration: While impressive, there is a risk. A significant chunk of revenue comes from their top 10 clients, a classic red flag discussed in our guide on Common IPO Mistakes.
Financial Deep Dive: Growth vs. Valuation
The financials present a mixed picture of aggressive top-line growth paired with volatile profitability. The company posted a loss in FY24 but rebounded strongly in FY25.
| Financial Metric (Consolidated) | FY2024 (₹ Cr) | FY2025 (₹ Cr) | Growth % |
|---|---|---|---|
| Total Revenue | 2,241.90 | 2,816.20 | ▲ 25.6% |
| Net Profit (PAT) | -54.70 | 220.60 | Turnaround |
| EPS (Diluted) | -2.12 | 8.15 | - |
Valuation Reality Check: At the upper price band of ₹900, the P/E ratio zooms past 100x. This is a "scarcity premium." Investors are paying for the *future* potential of AI, not just current earnings. It's a high-risk, high-reward setup.
SWOT Analysis
- ✅ Strengths: Market leader in AI/Analytics; strong client roster (Fortune 500); experienced management.
- 📉 Weaknesses: High dependence on US & European markets; historically inconsistent margins.
- 🚀 Opportunities: Generative AI adoption is exploding; expansion into healthcare AI via Qure.ai.
- ⚠️ Threats: Wage inflation in the tech sector; potential global recession impacting IT spending.
GMP & Listing Estimates
The Grey Market Premium (GMP) for the Fractal Analytics IPO has remained volatile. Currently, it trades in the range of ₹0 to ₹15, suggesting a flat-to-muted listing. The lack of a high GMP indicates that the street believes the issue is fully priced. Investors expecting a "pop" might be disappointed, but long-term value remains.
💡 The Verdict: Subscribe for Long Term?
Rating: Neutral / Long-Term Subscribe
The valuation at ₹900 is demanding. However, Fractal is a unique asset in the Indian market. If you understand the IPO vs FPO dynamics and risk appetite, small allocations for a 3-5 year horizon could be considered. Avoid if you are purely seeking listing gains.
Key IPO Details
| IPO Dates | 9 Feb 2026 – 11 Feb 2026 |
| Price Band | ₹857 – ₹900 per share |
| Lot Size | 16 Shares |
| Minimum Investment | ₹13,712 (at lower band) |
| Registrar | MUFG Intime India Pvt Ltd |
Frequently Asked Questions
1. What is the minimum investment for the Fractal Analytics IPO?
The minimum investment is ₹13,712 (16 shares x ₹857). However, retail investors typically bid at the cut-off price (₹900), making the effective investment ₹14,400.
2. Is Fractal Analytics profitable?
Yes, after a loss in FY24, the company posted a profit of over ₹220 Cr in FY25, signaling a financial turnaround.
3. How can I check the allotment status?
You can check the allotment status on the website of the registrar, MUFG Intime India, or via the BSE/NSE websites.
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