Fredun Pharmaceuticals Limited held its Q4 FY26 earnings conference call on 10th June 2026 at 11:00 a.m. The call was moderated by Kirin Advisors Private Limited and featured Mr. Fredun Medhora, Managing Director.

Financial Performance

Q4 FY26 Results:

  • Total Income: ₹213 crores, representing 27.27% year-on-year growth (vs. ₹167.41 crores in Q4 FY25)
  • EBITDA: ₹29.13 crores, showing 67.05% year-on-year growth
  • EBITDA Margin: 13.67%, expanding by 326 basis points
  • Net Profit: ₹11.07 crores, with 56.47% year-on-year growth
  • Net Profit Margin: 5.19%, expanding by 97 basis points

Full Year FY26 Results:

  • Total Income: ₹639.12 crores, marking 40.08% year-on-year growth
  • EBITDA: ₹94.79 crores, up 72.05% year-on-year
  • EBITDA Margin: 14.83%, expanding by 276 basis points
  • Net Profit: ₹33.21 crores, delivering 59.59% growth year-on-year

Business Segment Performance

Vintage Business (Growing at 15-20% YoY):

  • Exports: ₹110-120 crores
  • Tolling: ₹24 crores
  • Indirect exports and institution sales: ₹120-130 crores
  • Domestic third-party branding: ₹45-50 crores
  • Fredun DC: ₹25-30 crores

New Age Business (Growing at 40-50% CAGR):

  • Pet Care business: ₹42-43 crores
  • Mobility division: ₹29-30 crores
  • Nutraceuticals: ₹26 crores
  • Mass market cosmetics: ₹20-22 crores

New Product Launches and Strategic Initiatives

Hormonal Line Launch:

  • Launching hormonal products through doctor channel with focus on MMRDA region and metros
  • Will be among first or second in country for certain hormone products
  • First to have medicated hormone products sold online through website and doctor channel
  • Gross margins expected around 50%
  • Targeting testosterone replacement therapies and other hormonal treatments

Anti-Aging Line Launch:

  • Leveraging new CDSCO regulations requiring certified doctors for prescriptions
  • One of first manufacturers for NAD, NAD+ products
  • Has exclusive import rights for the API

Mobility Division:

  • Currently has 4 brands: BraceOn, DigiOn, NebOn
  • Launching Mobilitics brand in July 2026 targeting physiotherapy products
  • Pre-booking completely booked with physiotherapists
  • Expecting Mobilitics alone to reach ₹30-40 crores in next 2 years
  • Targeting ₹100 crores run rate within 2.5 calendar years
  • Long-term target of ₹250-300 crores enterprise
  • Expanding distribution from Maharashtra to Goa, Chhattisgarh, Karnataka
  • Planning to have same distribution as Maharashtra in 17-18 states within 2.5 years

Pet Care Business:

  • Unique approach targeting first-line influencers (breeders, groomers, dog walkers, trainers)
  • Launching 42 variants of functional food biscuits, including Jain biscuits
  • Online platform Wagr.in (formerly Wagr AI) to launch soft launch in 1st week of July 2026
  • Platform described as holistic pet care portal, not just e-commerce
  • Recently conducted CT scan for a cobra, demonstrating diagnostic capabilities
  • Stage 4 trials ongoing with formulations expected in next 12 months

Growth Guidance and Outlook

  • FY27 growth guidance: 25-30% on top line
  • Expect to overachieve previous 2029-2030 targets
  • Transitioning from contract manufacturer to consumer DTC products company
  • Targeting 50:50 vintage vs new age business mix in near term, then 70:30 in favor of new age
  • PAT margins expected to reach 10-12% within next few years
  • Company has maintained 32% CAGR for last 19 years with no degrowth

Operational Updates

  • Current order book: Over ₹320-330 crores in hand
  • Manufacturing: 80%+ products manufactured in-house
  • 43 manufacturing locations currently (increased from 37)
  • Adding 12-13 packing lines by end of September 2026
  • Constructing new wing within plant
  • Over 1,000 registrations in pipeline
  • 2,100 SKUs across 27 therapeutic ranges

Financial Management

  • Debt-to-equity ratio: 0.8
  • Company now generating positive cash flows from operations
  • Inventory levels: ₹270 crores against ₹700 crores top line (improved from ₹220 crores at ₹450 crores top line)
  • Finance costs expected to reduce as credit rating improves

Market Conditions

  • Geopolitical issues caused raw material price increases
  • Company maintained 3-4 months stock buffer to mitigate impact
  • Oil price increases affected PVC and plastic prices globally
  • Price increases absorbed 1-2% impact with no material effect on bottom line