Goldman Sachs has initiated coverage on Fractal Analytics with a Neutral rating and a target price of Rs 910. This implies an upside potential of 12.5% from current market levels. The brokerage sees a large analytics services total addressable market of about $328 billion and expects revenue CAGR of around 20% between FY26 and FY30, with EBIT growth at about 27%. It notes the company’s strong exposure to AI, machine learning and advanced analytics segments. However, the stock is trading at around 41x FY27 PE, and the premium valuation already factors in much of the expected growth.
Morgan Stanley, on the other hand, has initiated coverage on Fractal Analytics with an Overweight rating and a target price of Rs 964, implying an upside of about 20% from the last close. The brokerage expects revenue to grow at a CAGR of around 18% between FY26 and FY28, supported by a strong platform-led AI strategy that is driving differentiation.
It highlights the company’s gross margins of about 47%, which are higher than peers, while EBIT margins are seen at around 11% in FY26 and likely to expand towards 15% over time. R&D spending is estimated at 5% to 7% of revenue, and the stock is valued at 28x FY28 estimated earnings.
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Earlier this month, the company reported a consolidated profit after tax of Rs 100.1 crore for the quarter ended December 31, 2025.
The company posted consolidated revenue of Rs 854.4 crore in the third quarter of FY26, marking a 21% year-on-year (YoY) increase, driven by strong demand from healthcare and banking clients.
Revenue from the healthcare and life sciences segment, which contributes around 20% of total revenue, surged 78% YoY. The banking and financial services segment, accounting for about 12% of revenue, grew 26% during the quarter.
Fractal reported adjusted EBITDA of Rs 152.1 crore, up 24% YoY, with EBITDA margins expanding to 17.8%. Gross margin improved to 47.2%, the company said.
Fractal Analytics listed on Indian stock exchanges on February 16, 2026, after raising Rs 2,834 crore through its initial public offering. The company’s stock price opened at Rs 876 on the NSE, a 2.6% discount to the IPO price, while on the BSE it listed flat at Rs 900.
Fractal Analytics is positioned as a global enterprise AI and analytics firm. It operates through two main segments: Fractal.ai, which provides AI services and products through its agentic AI platform Cogentiq, and Fractal Alpha, which houses standalone AI-focused businesses targeting high-growth markets.
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