Times of India | Fractal says AI demand stronger than growth suggests despite TMT drag
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Fractal Analytics says demand for enterprise artificial intelligence remains stronger than its reported growth suggests, even though weakness in its technology, media and telecom (TMT) segment dampened quarterly performance. Founder‑CEO Srikanth Velamakanni noted that without TMT disruptions, revenue growth would have been about 27% instead of the reported 17%; the company posted a 17% year‑on‑year rise to ₹886 crore for Q1 2026 and a 109% jump in profit to ₹116 crore. Fractal is shifting from a traditional analytics services model to an AI transformation platform with outcome‑based pricing, aiming to increase output‑linked engagements from 40% to 60% in the next few years, as license revenue offers higher margins. Its healthcare and life‑sciences vertical is among the fastest‑growing, reflecting broader AI adoption in regulated sectors. Velamakanni highlighted that AI is moving beyond experimentation toward enterprise‑wide workflow redesign, driven by increasingly autonomous systems, and stressed the need for continued investment in frontier AI capabilities in India.







