Marking a defining—though cautious—moment for the Indian technology sector, Fractal Analytics Limited made its stock market debut today, February 16, 2026. Despite being hailed as the “gateway to AI” for Indian retail investors, the stock opened at a 3% discount on the National Stock Exchange (NSE), reflecting a broader market trend of valuation discipline and skepticism toward high-P/E tech listings.
The listing makes Fractal the first pure-play AI and decision intelligence company to go public in India, setting a benchmark for future “AI-first” unicorns.
Listing Day Performance: February 16, 2026
The stock’s entry into the secondary market was characterized by a lack of “listing gain” momentum, with shares dipping further into the red during afternoon trade.
| Metric | National Stock Exchange (NSE) | Bombay Stock Exchange (BSE) |
| Issue Price | ₹900 | ₹900 |
| Listing Price | ₹876.00 | ₹900.00 |
| Listing Change | ↓ 2.67% (Discount) | Flat (At Par) |
| Intraday Low | ₹852.00 (↓ 5.3% from Issue) | ₹851.55 (↓ 5.4% from Issue) |
| Market Cap at Open | ~₹14,840 Crore | ~₹15,470 Crore |
Why the “Muted” Reception?
Analysts identified several factors that tempered the debut of this AI unicorn:
- Aggressive Pricing: At the upper band of ₹900, Fractal was valued at over 100x FY25 earnings (post-issue P/E). In an environment where global IT stocks have recently corrected, investors felt the valuation left little “margin of safety.”
- Moderate Subscription: The IPO was oversubscribed 2.66 times overall, but retail interest was notably thin at 1.03 times. The lack of retail “hype” meant there was no significant buying pressure to push the price up post-listing.
- Revenue Concentration: While Fractal serves marquee clients like Google, Microsoft, and Apple, its top 10 clients contribute more than 50% of its revenue, a concentration risk that often weighs on institutional valuations.
- Generative AI Paradox: Some analysts expressed concern that while Fractal is an “AI-play,” the rapid rise of autonomous AI agents could disrupt traditional analytics consulting models, adding a layer of long-term uncertainty.
Business Fundamentals & Utilization of Proceeds
Despite the soft listing, Fractal enters the public market with a strong balance sheet and a clear roadmap for the ₹2,834 crore raised.
- Turnaround Story: After a loss in FY24, the company returned to profitability in FY25 with a PAT of ₹220.6 crore on a revenue of ₹2,816 crore.
- Capital Allocation: The fresh issue proceeds (₹1,023.5 crore) are earmarked for:
- Fractal USA Debt: ₹264.9 crore for repayment of borrowings.
- R&D & Innovation: ₹355.1 crore for the “Fractal Alpha” incubator.
- Infrastructure: ₹121.1 crore for new Indian offices and ₹57.1 crore for laptops.
- Dual-Engine Growth: The company continues to operate via Fractal.ai (services and the Cogentiq platform) and Fractal Alpha (product-led, IP-driven AI businesses).
“Fractal is a long-term play on the global AI market, which is projected to reach $310 billion by 2030. While the listing discount is disappointing for short-term traders, it offers a more reasonable entry point for those betting on the ‘Decision Intelligence’ theme over a 3-5 year horizon.” — Dr. Ravi Singh, Master Capital Services.
