Fractal sees big opportunity in partnering with OpenAI, Anthropic

Fractal, an Indian IT services firm, expects significant growth by collaborating with OpenAI and Anthropic as they accelerate efforts to embed AI tools into enterprise workflows. Co-founder Srikanth Velamakanni stated that partnerships with these AI leaders would position Fractal as a key beneficiary of the expanding market, which he described as a win-win scenario rather than a zero-sum game. The enterprise AI adoption has faced delays due to challenges like siloed data, complex workflows, and security concerns. However, OpenAI and Anthropic are actively addressing these hurdles to drive faster revenue realization. OpenAI recently secured $4 billion in funding to establish The Deployment Company, while Anthropic partnered with Blackstone, Hellman & Friedman, and Goldman Sachs to form an AI services company with $1.5 billion in backing. Velamakanni emphasized that the AI market is growing far beyond initial expectations, creating ample room for multiple players. He cautioned, however, that acquisitions would likely become a strategy for OpenAI and Anthropic to scale rapidly. Indian IT firms estimate the AI services market for enterprises at nearly $300 billion. Fractal’s Q4 2025 financial results showed strong performance, with revenue rising 17% to Rs 886 crore and profit after tax doubling to Rs 116 crore. Healthcare revenue surged 82%, while banking, financial services, and insurance (BFSI) grew 42%. The company’s adjusted EBITDA margin stood at 22%, with CFO Ashwath Bhat highlighting sustainable reductions in SG&A expenses from 26.5% to 22%. Velamakanni also noted that Fractal is shifting toward output-based contracts to improve gross margins, reinforcing its focus on efficiency and scalability. The company’s strategic positioning aligns with the broader trend of AI integration in enterprise operations, positioning it as a key player in the evolving digital economy.