Fractal Analytics Market Update **Current Performance and Valuation** Fractal Analytics shares have demonstrated significant volatility following their market debut on **February 16, 2026**. After listing at a **3% discount** to the issue price of **₹900**, the stock staged a sharp recovery during the following session. Intraday trading on **February 17, 2026**, saw the stock surge over **9%**, reaching a high of **₹921** on the NSE. The company currently commands a market capitalization of approximately **₹17,196 crore**. **Institutional Outlook** The recent price rebound was catalyzed by Prabhudas Lilladher initiating coverage with a **BUY** rating. The brokerage set a target price of **₹1,260**, representing a potential upside of approximately **40%**. Analysts highlight the company's shift from a traditional service provider to a high-growth enterprise AI platform. This transition is supported by a premium valuation, with the stock trading at a price-to-earnings (P/E) multiple of approximately **65x** to **71x** on a trailing basis. **Financial Momentum** Fractal reported total income of **₹2,816.2 crore** for FY25, marking a compound annual growth rate (CAGR) of **18%**. Revenue momentum has continued into the first half of FY26, reaching **₹1,594.3 crore**, a **20.5%** increase year-over-year. Profitability remains a core focus. While the company reported a net profit of **₹220.6 crore** in FY25, margins have moderated slightly in recent months. Adjusted EBITDA margins improved to **17.4%** in the last fiscal year, up from **10.6%** previously. **Key Growth Drivers** The company maintains a high level of revenue predictability with a **98%** client retention rate. Existing accounts contribute nearly **80%** of total revenue. Net revenue retention (NRR) stands at an impressive **121.3%**, signaling deep engagement with global brands. Strategic growth is being driven by the **Fractal Alpha** segment, which focuses on standalone AI businesses. Additionally, the **Cogentiq** agentic AI platform is central to the firm’s long-term product-led strategy. **Strategic Utilization of Funds** From the **₹2,834 crore** raised through the IPO, the company has earmarked **₹355.1 crore** specifically for research, development, and marketing within the Fractal Alpha division. A further **₹264.9 crore** is allocated to debt repayment for its US subsidiary. The firm continues to lean heavily on the North American market, which accounts for roughly **65%** of its total revenue.