Fractal Analytics — one of India’s leading artificial intelligence and analytics firms backed by TPG Capital and Apax Partners — is gearing up for a major IPO launch shortly after the Union Budget in February 2026.
This offering, sized at about ₹4,900 crore, will likely be one of the biggest tech IPOs of the year, coming on the heels of Amagi Media Labs’ ₹1,788 crore IPO.
Why Post-Budget?
According to market sources, the company chose to delay the launch until after the Budget announcement so it avoids the volatility that typically surrounds major policy events.
IPO Structure & Strategy
The Fractal IPO will be a mix of fresh issue and secondary sale:
- Fresh Issue: ₹1,279.3 crore
- Offer-for-Sale (OFS): ₹3,620.7 crore
— Sold by existing shareholders including TPG and others.
This structure gives the company capital to expand while allowing early investors to partially exit.
What Fractal Does
Fractal specializes in enterprise AI and advanced analytics solutions for global clients. It helps companies:
- Improve customer understanding
- Boost operational efficiency
- Accelerate product innovation
- Support executive decision-making with data insights
Its clients include multinational brands across banking, tech, retail, healthcare, and insurance sectors.
The company even has a focused segment called Fractal Alpha, a set of independent AI businesses targeting global markets with distinct management teams.
Financial Performance Snapshot
Fractal’s financials tell a story of growth and profit turnaround:
- FY25 Revenue: ~₹2,765–2,816 crore
- Net Profit: ₹220.6 crore (up from a loss in FY24)
This improvement underscores strong demand for AI-driven analytics services amid digital transformation trends worldwide.
How the IPO Funds Will Be Used
Funds from the IPO aren’t just for listing prestige — they’re earmarked for strategic purposes, including:
- Repayment or prepayment of borrowings at its U.S. subsidiary
- Research and development (critical for staying ahead in AI)
- Sales and marketing, especially for Fractal Alpha
- New office infrastructure in India
- Acquisitions and general corporate needs
What It Means for Markets
1. A Flagship AI IPO in India
Fractal will be among the largest pure-play AI listings in India, giving domestic investors direct exposure to enterprise AI growth.
2. Signals Strength in Tech IPO Pipeline
With post-Budget timing and substantial size, this issue reflects renewed confidence in India’s primary market for tech and AI firms.
3. Institutional Interest Likely
Given marquee backers and strong client base, institutional demand — especially from long-term funds hunting tech growth — could be robust.
Final Take
The Fractal Analytics IPO isn’t just another listing — it’s a marker of maturity for India’s AI ecosystem and the broader tech capital markets. Whether you’re a retail investor or part of institutional syndicates, this IPO is poised to be a headline event in 2026.