Fractal Analytics Eyes AI Boom Amid Economic Uncertainty

Pune-based Fractal Analytics sees AI as a tool to counteract economic uncertainties, evidenced by their 47% profit margins. Despite geopolitical challenges and sector-specific issues, the company achieved an 8.5% profit growth in Q3 2025. Europe's business robust, while Asia-Pacific lags due to a client setback.

Pune-based Fractal Analytics is poised to leverage artificial intelligence to boost efficiency and cut operational costs, even as global economic growth faces headwinds from the Middle East crisis. The company's co-founder and Group CEO, Srikanth Velamkanni, expressed optimism about the firm's growth trajectory.

Fractal Analytics reported a healthy 47% margin in the third quarter of 2025, achieving an 8.5% growth in consolidated profit after tax, up from Rs 92.2 crore the previous year. Despite the geopolitical situation impacting the manufacturing sector, the company's AI-driven strategy is set to offset these economic challenges.

While revenue in the Asia-Pacific region dipped, notable growth was recorded in both the US and European markets. The firm's expansion is supported by a rising number of 'must-win' clients across America and Western Europe, despite challenges faced by healthcare associate company, Qure.ai.

(With inputs from agencies.)