Fractal Analytics IPO Makes Flat Debut then Declines, Lists at ₹900 Against Moderate 2.81x Subscription

Fractal Analytics Ltd, a global enterprise AI and analytics firm established in March 2000 supporting major companies in making intelligent decisions with over two decades of experience crafting AI solutions by blending deep technical know-how with domain and functional expertise operating through two key segments comprising Fractal.ai providing AI services and products through agentic AI platform Cogentiq designed to simplify product development with built-in tools, governance, low-code features, and security along with Fractal Alpha housing standalone AI businesses targeted at growth markets serving marquee global clients including Citibank, Costco, Franklin Templeton, Mars, Mondelez, Nationwide, Nestle, and Philips, made a weak debut on BSE and NSE on Monday, February 16, 2026. After closing its IPO bidding between February 9-11, 2026, India's first AI solutions company to go public commenced trading flat at issue price of ₹900.00 before declining to ₹855.15 (down 4.98%) and trading around ₹864.40 (down 3.96% from issue price).

Fractal Analytics Listing Details

Fractal Analytics share launched its IPO at ₹900 per share with minimum investment of 16 shares costing ₹14,400. The IPO received moderate response with subscription of 2.81 times - retail investors at 1.10 times, NII at 1.11 times (bNII at 1.24 times, sNII undersubscribed at 0.86 times), QIB at 4.41 times, employee portion undersubscribed at 0.65 times, total applications of 1,45,596 indicating cautious investor sentiment despite India's first AI company going public with analyst noting issue appears aggressively priced despite serving marquee global clients.

First-Day Trading Performance

Listing Price: Fractal Analytics opened at ₹900.00 representing flat listing at issue price of ₹900.00, declined to touch low of ₹855.15 (down 4.98%), trading around ₹864.40 (down 3.96%), with VWAP at ₹876.00, reflecting weak market sentiment as selling pressure mounted post-listing creating losses for IPO investors with turnover of ₹23.95 crore, traded volume of 2.73 lakh shares, delivery percentage of 57.97%, and market capitalisation of ₹14,864.66 crore against pre-IPO market cap of ₹15,473.60 crore.

Growth Drivers and Challenges

Growth Drivers:

• Leading AI Market Player: Established global enterprise AI and analytics firm with over two decades of experience operating in large and growing AI market with integrated technical, domain, and functional expertise through proprietary agentic AI platform Cogentiq.
• Marquee Global Client Base: Long-standing relationships with top global clients including Citibank, Costco, Franklin Templeton, Mars, Mondelez, Nationwide, Nestle, and Philips contributing to diversified revenue base with strong client retention.
• First Mover Advantage: India's first AI solutions company going public potentially attracting institutional interest in AI sector with proven track record of innovation and experienced founders-led management team focused on long-term growth.
• Strong Balance Sheet: Net worth of ₹1,957.50 crore with low debt-to-equity, total borrowings of ₹274.60 crore, revenue of ₹2,816.20 crore in FY25 with PAT of ₹220.60 crore demonstrating profitability.

Challenges:

• Aggressive Pricing: Analyst notes issue appears aggressively priced at post-IPO P/E of 109.12x with inconsistency in bottom lines despite growing top lines, subscription of only 2.81x indicating market concerns.
• Bottom Line Inconsistency: PAT of ₹220.60 crore in FY25 versus loss of ₹54.70 crore in FY24, PAT margin declining from 8.00% in FY25 to 4.50% in H1 FY26, EBITDA margin declining from 14.40% to 11.90%.
• Weak Retail and NII Interest: sNII undersubscribed at 0.86 times and employee portion at 0.65 times indicating concerns over valuations among informed investors despite first AI company status.

Utilisation of IPO Proceeds

• Research and Development: ₹355.10 crore for investment in research and development and sales and marketing under Fractal Alpha driving innovation and growth.
• Debt Repayment: ₹264.90 crore for investment in subsidiary Fractal USA for prepayment/scheduled repayment of borrowings strengthening balance sheet.
• Inorganic Growth: ₹161.10 crore for funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes.
• New Office Premises: ₹121.10 crore for setting up new office premises in India expanding operational infrastructure.
• Laptops: ₹57.10 crore for purchase of laptops supporting workforce requirements.

Financial Performance

• Revenue: ₹1,594.30 crore for H1 FY26, ₹2,816.20 crore for FY25, growth from ₹2,241.90 crore in FY24 and ₹2,043.70 crore in FY23, reflecting expanding AI and analytics solutions operations across global enterprise clients.
• Net Profit: ₹70.90 crore in H1 FY26, ₹220.60 crore in FY25, turnaround from loss of ₹54.70 crore in FY24, demonstrating improving profitability with post-IPO EPS of ₹8.25 and P/E of 109.12x.