Fredun Pharma

Fredun Pharmaceuticals Limited delivered robust financial results for Q2 FY26, with total income reaching INR 145.29 crores, marking a 35% year-on-year increase. EBITDA surged by 60% to INR 22.34 crores, improving the margin to 15.37%, while net profit saw a significant 128% jump to INR 9.73 crores. For the first half of FY26, total income grew 42% to INR 265.15 crores, EBITDA increased 61% to INR 39.33 crores, and PAT rose 96% to INR 16.50 crores, demonstrating healthy momentum across new age verticals.

The company significantly expanded its presence in the fast-growing pet care segment through two strategic acquisitions. One Pet Stop Private Limited, a tech-enabled pet grooming and wellness platform, was acquired to integrate products and services and reach a broader consumer base. Additionally, Wagr.ai, a pioneering pet tech platform offering GPS tracking and veterinary consultation, was acquired at zero cost, with plans to invest INR 4-5 crores in the next 18-24 months for platform development. This strategy aims to build a connected technology-led pet wellness ecosystem under the Freossi brand.

Fredun Pharma launched Snacky Jain, India's first pure Jain functional food for pets, developed through in-house R&D. This 100% vegetarian snack, enriched with calcium and essential nutrients, has already seen 12 tons sold through preorders and is rolling out across 6 major cities. The company also highlighted innovative products in cosmeceuticals, such as an SPF 100 sunscreen in a single-use sachet and cost-effective wet wipes, which have gained significant market traction.

To support growing demand and improve operational efficiency, Fredun Pharmaceuticals has commenced the expansion of its state-of-the-art manufacturing facility in Palghar. The company aims for this facility to become one of the largest single-location plants in the country within the next two years. This expansion is crucial for enhancing capacity across its diverse product portfolio, including branded generics, nutraceuticals, cosmeceuticals, animal healthcare, and mobility aids.

While pet care is a key focus, Fredun Pharma maintains a diversified approach, with 1,600 other products in allopathic and GX ranges performing well. The mobility segment is anticipated to grow 25-30% year-on-year, leveraging existing distribution channels. Nutraceuticals are supported by double-blinded clinical trials and offer complementary products to allopathic formulations. The company's long-term vision includes 51% of revenue from the U.S. business by FY32 and aims for its vintage business to grow at a 15% CAGR over the next 7-9 years.

The company's recently raised funds are being strategically allocated to new product development, team building, marketing, distribution, capex, and reserves. This growth capital is intended to expedite the company's journey towards its 2029-2030 goals, particularly in new-age businesses. A significant portion will also be directed towards working capital to support the launch of new SKUs, ensuring sustainable growth and improved margins in the long run.