Fractal Analytics IPO 2026: India's First AI Unicorn IPO - Complete Guide to ₹4,900 Crore Listing
Fractal Analytics is about to become India's first pure-play AI unicorn to go public, marking a watershed moment for the country's artificial intelligence sector. With SEBI approval secured on November 18, 2025, the company is preparing for a landmark ₹4,900 crore IPO that will reshape how investors think about India's tech future.
This is not just another tech IPO. Fractal Analytics powers over 100 Fortune 500 companies with AI-driven enterprise solutions, commands a $3.5 billion valuation, and demonstrated a stunning 503% PAT growth from FY24 to FY25—swinging from a ₹54.70 crore loss to a ₹220.60 crore profit. As enterprise AI adoption accelerates globally (87% of large enterprises now implement AI solutions), Fractal is positioned at the epicenter of a $229 billion global market projected to grow at 18.9% annually through 2030.
This comprehensive guide explores everything investors need to know about Fractal Analytics IPO—from IPO structure and financial performance to investment considerations and application process.
What Is Fractal Analytics IPO?
Fractal Analytics Limited (also known as Fractal.ai) is preparing to list its equity shares on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) through a landmark Initial Public Offering.
Key Facts at a Glance:
- Company: Fractal Analytics Limited
- Incorporation: March 2000 (25+ years of operations)
- Status: India's leading pure-play enterprise AI and analytics firm
- SEBI Approval: November 18, 2025
- Approval Validity: 12 months from November 18, 2025
- IPO Type: Book Building IPO (Mainboard)
- IPO Size: ₹4,900 crore (approximately $560 million USD)
- IPO Structure: Mix of fresh issue (₹1,279 crore) and offer for sale (₹3,621 crore)
- Expected Launch: Early 2026 (exact dates TBA when RHP released)
- Listing: NSE and BSE (dual listing)
SEBI Approval Status & Timeline
What Happened:
On August 12, 2025, Fractal Analytics filed its Draft Red Herring Prospectus (DRHP) with SEBI containing preliminary IPO terms and financial details.
On November 18, 2025, after careful regulatory review, SEBI approved the IPO, opening the path for immediate execution.
What Comes Next (Expected Timeline):
Critical Date: When the Red Herring Prospectus (RHP) is released in mid-January 2026, the exact IPO dates, final price band, lot size, and detailed terms will be confirmed.
IPO Size, Structure & Price Band
IPO Valuation & Size:
Why This Valuation?
Fractal's pre-IPO valuation of $3.5 billion+ reflects:
- 26% revenue growth in FY25 to ₹2,816 crore
- 503% PAT swing from -₹54.70 crore loss (FY24) to +₹220.60 crore profit (FY25)
- 14.4% EBITDA margin (up from 4.4% in FY24) showing operational excellence
- 100+ Fortune 500 clients with 90%+ repeat revenue
- 121.3% Net Revenue Retention (highest quality growth metric)
- Pure-play AI exposure in a ₹229 billion global enterprise AI market growing at 18.9% CAGR
Shareholding Structure:
Pre-IPO Shareholding:
- Total shares outstanding: 14,15,52,559 shares
- Promoters: ~18.3% (Founders: Srikanth Velamakanni, Pranay Agrawal, Chetana Kumar, Narendra Kumar Agrawal, Rupa Krishnan Agrawal)
- Existing investors: ~81.7% (TPG Capital, Apax Partners, angel investors, GLM Family Trust)
Post-IPO Shareholding (Estimated):
- Total shares post-IPO: 15,96,46,975 shares
- Promoter stake will dilute slightly with fresh issue but remain controlling
About Fractal Analytics: Business Model
Company Overview:
Fractal Analytics is a global enterprise artificial intelligence and analytics company founded in March 2000 by Srikanth Velamakanni and Pranay Agrawal. The company helps Fortune 500 enterprises solve complex business problems using proprietary AI platforms, machine learning algorithms, and advanced analytics.
Two-Segment Business Model:
1. Fractal.ai (Core Profitable Business)
- Focus: AI services and products through its agentic AI platform Cogentiq
- Cogentiq Features: Built-in tools, governance, low-code capabilities, enterprise-grade security
- Revenue FY25: ₹2,701 crore (96% of total revenue)
- Growth: 24% YoY revenue growth
- Client Base: 100+ Fortune 500 companies
- Net Revenue Retention: 121.3% (shows strong upselling and cross-selling)
- Top 10 Clients Contribution: 54% of segment revenue (concentrated but long-term relationships averaging 8+ years)
- Key Industries Served: Financial services, healthcare, retail, manufacturing, energy, telecom
- Geography: US 65% (₹1,802 cr), Europe 17.5% (₹484 cr), India 8% (₹232 cr), Others 9.5% (₹247 cr)
2. Fractal Alpha (Innovation/R&D Incubation)
- Focus: Standalone AI businesses and research initiatives for high-growth markets
- Model: Run as independent units to drive focused innovation
- Revenue FY25: ₹64 crore (subscription income)
- Status: Currently loss-making but strategic for future innovation
- Key Products:
- Cure.ai: AI-powered medical image analysis (detected TB/COVID in 25+ million X-rays)
- Kalaido.ai: GenAI-powered text-to-image generator
- Flyfish: Sales-oriented GenAI platform
- MarshallGoldsmith.ai: Behavioral coaching chatbot
- Vaidya: Medical AI multimodal model
Competitive Strengths:
- Leadership in Fast-Growing AI Market: Pure-play enterprise AI firm with proven technology
- Fortune 500 Client Base: 100+ global enterprises across 17 countries
- Long-Term Client Relationships: Average 8+ year relationships, 90%+ repeat revenue
- Integrated AI Capabilities: Deep technical expertise + domain knowledge + functional expertise
- Proprietary AI Platforms: Cogentiq and Fractal Alpha products create switching costs
- Innovation Track Record: Continuous investment in R&D (7-10% of revenue)
- Financial Turnaround: Swung from loss-making to 8% PAT margins in one year
- Founder-Led Leadership: Visionary founders continue to lead with long-term focus
- Strong Talent Base: 4,500+ employees globally, hiring 2,000+ annually
Financial Performance & Key Metrics
Consolidated Financial Statements (₹ Crore):
Key Performance Indicators (KPIs):
Financial Highlights:
Outstanding FY25 Performance:
- Operating Cash Flow: ₹397 crore (up from ₹159.5 crore in FY24) — +149% increase
- Free Cash Flow: ₹314.2 crore (up from ₹135 crore in FY24)
- Cash & Bank Balances: ₹288 crore as of March 31, 2025
- Debt: Only ₹266.2 crore (conservative financing)
- Interest Coverage: Strong position to service debt with improving profitability
Revenue Composition:
- Analytical Services: ₹2,701 crore (96% of revenue) — Core consulting/services
- Subscription Income: ₹64 crore (2% of revenue) — SaaS/product revenue (growing 167% YoY)
- Other Income: ₹51 crore — Investment income, gains from subsidiary operations
What This Means for Investors:
✅ Strong profitability rebound signals operational excellence
✅ High cash generation validates business model
✅ Expanding margins show improving scalability
✅ Low debt indicates financial stability
✅ High NRR (121.3%) shows superior customer satisfaction and retention
IPO Structure: Fresh Issue vs. Offer for Sale
What Is a Fresh Issue?
A Fresh Issue means:
- New shares created and issued by Fractal Analytics
- Money raised goes directly to the company's balance sheet
- Uses: R&D investment, infrastructure, global expansion, acquisitions
- Impact: Increases total shares outstanding and slightly dilutes existing shareholders
- Size: ₹1,279.30 crore (26% of IPO)
What Is an Offer for Sale (OFS)?
An Offer for Sale means:
- Existing shares sold by current shareholders (TPG Capital, Apax Partners, early investors)
- Money goes to sellers, not to the company
- Provides liquidity for existing investors to partially exit
- No impact on company's equity or balance sheet
- Size: ₹3,620.70 crore (74% of IPO)
Fractal IPO Structure Breakdown:
Why This Mix?
Fresh issue provides capital for growth while maintaining investor interestOFS gives liquidity to early investors (TPG, Apax Partners) who funded the companyBalance ensures both company growth AND investor returnsMarket signal: Company doesn't need more capital desperately (only 26% fresh), suggesting confidence
Investor Reservation Categories
IPO Allocation by Investor Type:
What This Means:
High QIB allocation (75%) indicates:
- Strong institutional investor demand expected
- Company targets large funds and foreign investors
- Suggests premium valuation expectations
- Lower retail quota means fewer shares available for retail investors
Bidding Rules:
For Retail Investors:
- Maximum bid amount: ₹2 lakh
- Can bid at cut-off price (yes)
- Allocation: Pro-rata if oversubscribed
For NII (HNI):
- Bid range: 2 lakh to ₹10 lakh (sNII) or above ₹10 lakh (bNII)
- Cannot bid at cut-off price
- Must bid within the price band
For QIB:
- Unlimited bidding (up to reserved portion)
- Can bid at cut-off price (yes)
- Institutional-grade bidders
Lead Managers & Registrar Details
Book Running Lead Managers (BRLMs):
1. Kotak Mahindra Capital Co. Ltd.
- Status: Primary lead manager
- Track Record: Top-tier investment banker with strong IPO expertise
- Past Performance: Consistently successful tech and growth-focused IPO exits
- Strengths: Strong institutional investor networks, pricing expertise
- Website: www.kotaksecurities.com
2. Axial Capital Pvt. Ltd.
- Status: Co-lead manager
- Role: Syndicate member supporting book building process
- Expertise: IPO management and equity capital markets
Registrar to the Offer (RTA):
MUFG Intime India Pvt. Ltd. (formerly Linkintime India Pvt. Ltd.)
- Role: Handle all IPO processes including allotment, share crediting, refunds
- Contact:
- Email: fractal.ipo@in.mpms.mufg.com
- Phone: +91-22-4918 6270
- Website: https://linkintime.co.in/Initial_Offer/public-issues.html
- IPO Status Checking: Via MUFG Intime website (status tracker)
Merchant Banker Roles:
Lead Managers will:
- Determine price band
- Conduct roadshow to institutional investors
- Manage book building process
- Determine final IPO price
- Underwrite the IPO (guarantee subscription)
Registrar will:
- Manage investor applications (ASBA process)
- Conduct lottery for allotment
- Credit shares to demat accounts
- Process refunds for non-allotted investors
- Handle investor complaints
