Fredun Pharmaceuticals Limited held its Q1 FY27 earnings conference call on 13th August 2026 at 11:30 a.m. The transcript was submitted to BSE Limited pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Highlights

  • Stand-alone total income for Q1 FY27 stood at ₹228.25 crores, registering a YoY growth of 90.44%
  • EBITDA stood at ₹32.78 crores, reflecting YoY growth of 92.90%
  • EBITDA margin improved to 14.36%, expanding by 18 bps year-on-year
  • Net profit for the quarter stood at ₹13.17 crores, registering YoY growth of 94.63%
  • Net profit margin improved to 5.77%, expanding by 12 basis points

Growth Strategy and Outlook

Management outlined a blended growth rate of 30-35% for the next 3 years, driven by:

  • New age brands growing at 35-45% YoY
  • Vintage business growing at 15-20% YoY
  • Expansion to 43 manufacturing locations across 5 plants in Palghar
  • Target to build one of India's largest manufacturing units at a single location by December 2028/early 2029

Capital Expenditure Plans

  • ₹30-40 crores CapEx planned for FY27
  • Similar ₹30-40 crores annual CapEx expected for the next 2 years
  • Maintenance CapEx of approximately 2% of revenue at ₹1,000 crores revenue level

Business Segment Updates

Fredun GX (Domestic Business):

  • Currently present across 19 states (increased from 17 states)
  • Current revenue base of ₹100-110 crores
  • Targeting 25-35% growth for next 5 years
  • Focus on deeper penetration into Tier 2-4 cities

Pet Care Business:

  • Current revenue of ₹40-43 crores
  • Targeting 40-50% growth for next 3-4 years
  • Planning to launch cat food by Q3 FY27 (Q4 FY27 expected impact)
  • Functional foods targeting ₹18-24 crores in sales this year
  • Expanding diagnostics centers in Mumbai (Worli, Malad, Vashi)

Wagr.in Platform:

  • Soft launched on 15th June 2026 (beta phase)
  • Onboarding 1,500-2,000 medical products from various brands
  • Features include breeder listings, trainers, groomers, dog walkers, doctors, diagnostics, and blood donation services for pets
  • Full launch expected within 60-90 days with marketing campaigns and partnerships

Operational Metrics

Working Capital:

  • Current working capital of ₹170-175 crores at ₹850 crores run rate
  • Working capital expected to increase proportionally with revenue growth
  • Approximately 50% of working capital held as cash on hand

Inventory Management:

  • Targeting inventory days reduction to 120 days within next 4 quarters
  • Long-term target of 110-125 days inventory
  • Inventory days have reduced by 50% over last 2 years

Credit Rating:

  • Improved from BBB to BBB+
  • Contributing to reduced interest costs

Margin Outlook

Management expects margin expansion driven by:

  • Pet care margins: 45-55%
  • Mobility margins: 40-50%
  • Nutrition margins: 35-50% (currently in expansion phase)
  • Dermaceutics margins: 70-75%
  • Expected significant profitability improvement within 8-11 quarters

Guidance

  • FY27 revenue target: ~₹800 crores (with potential to exceed)
  • No specific guidance provided for ₹1,000 crores revenue or ₹100 crores EBIT
  • Emphasis on consistent growth rather than quarterly targets

Additional Business Updates

  • Functional Foods division performing well, with Jain variant performing exceptionally in certain pockets
  • Planning 42 variants in functional foods
  • Cat biscuit treats launch planned (positioning as 2nd or 3rd in country)
  • Team building complete with division CEOs having 10-25 years experience
  • Low attrition rates with core team members retained for 19 years