India's First AI Firm Fractal Analytics Has Muted IPO Debut

Concerns over AI technology and market volatility impact Fractal's public market debut.

Published on Feb. 16, 2026

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Fractal Analytics, India's first AI company to go public, had a subdued first day of trading on the stock market. The company's shares opened below the IPO price of ₹900 and closed down 7% at ₹873.70, giving Fractal a market cap of around $1.6 billion. This marks a step down from Fractal's recent $2.4 billion private market valuation, signaling investor jitters around AI technology and the broader market sell-off in Indian software stocks.

Why it matters

Fractal's muted IPO debut is seen as a reflection of persistent concerns in India over the adoption and impact of AI technology, even as the country seeks to position itself as a key market and development hub for AI. The performance also highlights the volatility in Indian markets, where software stocks have faced a major sell-off recently, impacting investor sentiment.

The details

Fractal had originally planned to raise around $540 million through the IPO but ended up cutting the size by over 40% to $312.5 million based on advice from its bankers. The company, which pivoted to AI in 2022 after over 20 years as a traditional data analytics firm, has been touting steady business growth with a 26% jump in revenue to $304.8 million in the year ended March 2025. It also swung to a net profit of $24.3 million from a loss the previous year.

  • Fractal Analytics listed on the public markets on Monday, February 16, 2026.
  • In July 2025, Fractal raised $170 million in a secondary sale at a $2.4 billion valuation, becoming India's first AI unicorn in January 2022.

The players

Fractal Analytics

An Indian artificial intelligence and data analytics software company that recently went public, becoming the country's first AI firm to list on the stock exchange.

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The takeaway

Fractal Analytics' muted IPO debut reflects the persistent concerns in India over the adoption and impact of AI technology, even as the country seeks to position itself as a key market and development hub for the industry. The performance also highlights the volatility in Indian markets, where software stocks have faced a major sell-off recently, impacting investor sentiment.