Fractal Analytics Limited

Technology — Software - Infrastructure · NSE

₹738.00+₹5.45 (+0.74%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:06 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

The 60-second version of Fractal Analytics Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Fractal Analytics Limited provides artificial intelligence (AI) and analytics solutions to automate business workflows, extract insights from data, and optimize enterprise operations.

IndustrySoftware - Infrastructure

SectorTechnology

Employees5,868

Annual revenue₹3,300 Cr

How does it make money?

Turns over ₹3,300 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 5,868 employees supports ₹56.2 lakh of revenue a year, the signature of a people-led business.

EBITDA margin15.4%

Net margin8.9%

Revenue / employee₹56.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What is its competitive advantage?Little sign of one

Returns on capital of 10.4% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE10.4%

ROE9.2%

Peer median ROE32.0%

What is the outlook?

7 analysts covering the stock expect revenue to grow about 17.3% and earnings to grow about 36.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.3%

Est. earnings growth+36.7%

Analysts7

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +66% while net margin moved -13% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+66%

Margin effect-13%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

62/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

26/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

39.3x

Sector Median

16.5x

median of 4 sector peers

⚠️Against its sector it trades 137% above the peer median of 16.5x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

16.5x median of 4 peers · +137%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

39.3x

P/B

3.86x

EV/EBITDA

25.4x

PEG

3.04

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -4.3% to 15.4% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.13x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 15.1% to 9.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 19.4% to 10.4% — often a sign of competition or overexpansion.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -4.3% to 15.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹190 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 137% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 15.1% to 9.2%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 14% a year✓ 18.5% CAGR
Latest reported year was 20.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 15.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹190 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 6 neutral · 0 weak

Market Cap

₹12,691 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

39.3x

Fair

Fairly valued against the generic band

P/B Ratio

3.86x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹18.78

Profitable

Profitable on a per-share basis

ROE

9.2%

Moderate

Moderate capital efficiency

ROCE

10.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.13x

Low

Conservative leverage

Revenue Growth (YoY)

20.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

77.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹190 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹738

P/E (Forward)

26.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

11.3%

Average

Average margins

Net Margin

9.5%

Average

Average bottom-line conversion

Current Ratio

3.00

Comfortable

Healthy short-term liquidity

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

735.8 / 781.7

Bearish alignment (short < long)

RSI (14)

45.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,985 Cr	₹2,196 Cr	₹2,765 Cr	₹3,300 Cr	+18.5%
EBITDA	-₹86 Cr	₹68 Cr	₹332 Cr	₹509 Cr	—
EBITDA Margin	-4.3%	3.1%	12.0%	15.4%	—
PAT (Net Profit)	₹203 Cr	-₹48 Cr	₹223 Cr	₹292 Cr	+12.9%
EPS	₹11.8	₹-2.76	₹12.97	₹17.19	+13.4%
ROE	15.1%	-3.4%	12.7%	9.2%	—
ROCE	19.4%	0.5%	12.3%	10.4%	—
Total Debt	₹377 Cr	₹363 Cr	₹429 Cr	₹418 Cr	+3.5%
Free Cash Flow	-₹65 Cr	₹135 Cr	₹314 Cr	₹190 Cr	—

🟢 Revenue has grown at 18.5% a year over 3 years.

🟢 EBITDA has turned positive, from -₹86 Cr to ₹509 Cr.

🟢 EBITDA Margin has risen from -4.3% to 15.4% over 3 years (+19.8 pts).

🟢 PAT (Net Profit) has grown at 12.9% a year over 3 years.

🟢 EPS has grown at 13.4% a year over 3 years.

🔴 ROE has fallen from 15.1% to 9.2% over 3 years (-5.9 pts).

🔴 ROCE has fallen from 19.4% to 10.4% over 3 years (-9.1 pts).

🔴 Total Debt has grown at 3.5% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹65 Cr to ₹190 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,407 Cr

Total Liabilities

₹1,221 Cr

Total Debt

₹418 Cr

Cash & Equivalents

₹207 Cr

Operating Cash Flow

₹409 Cr

Capex

-₹219 Cr

Shareholding (proxy)

Institutional Holding

10.9%

Insider Holding

63.8%

Analyst Consensus

Recommendations

5 Buy · 2 Hold · 1 Sell

Target Price (Mean)

₹944.5

+28.0% vs CMP

Target Range

₹685 – ₹1,200

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

3 mixed1 negative2 general

FRACTAL ANALYTICS LIMITED Share Price

Upstox, 16 Oct

Fractal Analytics net income surges 92% in Q1 FY27 as TMT bottoms out

scanx.trade, 18 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

FRACTAL Stock Price and Chart — NSE:FRACTAL

TradingView, 30 Sept

Why Is Fractal Analytics Share Price Falling Key Reasons 2026

Univest, 24 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Fractal Analytics among two stocks Kotak Securities is bullish on

Business Standard, 18 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Fractal Analytics Shares Fall 6% After Q1 Results As Net Profit Drops

NDTV Profit, 24 JulResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate10.5/20

🟢Financial HealthStrong17.8/20

🟡GrowthModest12.9/20

🔴ProfitabilityWeak5.8/15

🟡ValuationFair7.5/15

🔴RiskHigh3.2/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

This thesis breaks if

✓Revenue growth stays above 14% a year18.5% CAGR
✓EBITDA margin holds above 13%15.4%
✓Free cash flow remains positive₹190 Cr
✓Debt / EBITDA stays below 2x0.8x
✓ROCE stays above 8%10.4%