Fredun Pharma — Q2 FY26 earnings call

Call held 11 Nov 2025

Management summary

Fredun Pharmaceuticals Limited reported a strong Q2 and H1 FY26, with significant year-on-year growth in revenue, EBITDA, and net profit. The company reinforced its focus on high-margin businesses and expanded its footprint in the pet care segment through strategic acquisitions of One Pet Stop Private Limited and Wagr.ai. Product innovation was highlighted with the launch of Snacky Jain, and manufacturing capacity expansion is underway to support growing demand.

Highlights

  • Q2 FY26 Total income stood at INR 145.29 crores, growing by 35% year-on-year.

  • Q2 FY26 EBITDA grew by 60% to INR 22.34 crores, with margin improving to 15.37%.

  • Q2 FY26 Net profit grew by 128% to INR 9.73 crores.

  • H1 FY26 Total income stood at INR 265.15 crores, grew by 42%.

  • H1 FY26 EBITDA grew by 61% to INR 39.33 crores, and PAT grew by 96% to INR 16.50 crores.

  • Acquired One Pet Stop Private Limited and Wagr.ai to strengthen pet care offerings.

  • Launched Snacky Jain, India's first pure Jain functional food for pets, with 12 tons already sold through preorders.

  • Commenced expansion of state-of-the-art manufacturing facility at Palghar to enhance capacity.

Key financials

2 periods

Q2 FY26

  • Total Income
    ₹145.29 Cr
    YoY +35%
  • EBITDA
    ₹22.34 Cr
    YoY +60%
  • EBITDA Margin
    15.4%
  • Net Profit
    ₹9.73 Cr
    YoY +128%

H1 FY26

  • Total Income
    ₹265.15 Cr
    YoY +42%
  • EBITDA
    ₹39.33 Cr
    YoY +61%
  • PAT
    ₹16.5 Cr
    YoY +96%

What they filed

Q1 FY27: revenue up 90.0%, net profit up 85.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue107 103 167 120 145 +36%161 +56%213 +28%228 +90%
EBITDA14 13 17 17 22 +57%26 +100%29 +71%33 +94%
Net profit4 5 7 7 10 +150%10 +100%11 +57%13 +86%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • M&A One Pet Stop Private Limited Acquisition · Closed

    Entered the organized Pet Care service market with a tech-enabled pet grooming and wellness platform serving over 4,000 recurring pet parents.

    Through the acquisition of One Pet Stop Private Limited, a tech-enabled pet grooming and wellness platform serving over 4,000 recurring pet parents, we entered the organized Pet Care service market.
  • M&A Wagr.ai Acquisition · Closed · Consideration ₹0 Cr (stock)

    Enhanced vision of building a connected technology-led pet wellness ecosystem with GPS tracking, health monitoring, and veterinary consultation services, and over 140,000 pet parents patented technology.

    Acquisition cost was zero, with existing stakeholders taking a small stake in the new company.

    We also acquired Wagr.ai, a pioneering pet tech platform that introduced GPS tracking, health monitoring and veterinary consultation service in India. With over 140,000 pet parents patented technology, a strong veterinary network, Wagr.ai enhance our vision of building connected technology-led pet wellness ecosystem.
  • M&A Wagr.ai Platform Development Investment · Announced · Consideration ₹4 Cr (cash)

    To get basic things aligned for the platform and further development.

    Initial investment of INR 4-5 crores in 18-24 months, with another INR 5-7 crores later.

    We are investing about INR4 crores to INR5 crores in the next 18 to 24 months for getting basic things aligned. And then we intend to invest another INR5 crores to INR7 crores later on.

Guidance & targets

Business Mix

  • US Business Contribution to Revenue Business Mix · by FY '32 · High confidence over 51%
    by FY '32, over 51% will come from our U.S. business.

    — Khanjan

Market Share

  • Pet Wellness Ecosystem Dominance Market Share · by 2032 · High confidence no pet in India should be born or die without using Freossi products
    Our long-term vision is that by 2032, no pet in India should be born or die without using Freossi products, reflecting our mission to build India's most trusted and comprehensive pet wellness ecosystem.

    — Khanjan

Revenue Growth

  • Vintage Business CAGR Revenue Growth · next 7 to 9 years · High confidence around 15%
    Our idea is to focus more on our new age businesses because the vintage business is going to grow for the next 7 to 9 years at around 15% CAGR because of the registrations and the existing channels in place.

    — Fredun Medhora

  • Mobility Segment YoY Growth Revenue Growth · year-on-year · High confidence 25% to 30%
    That is why the mobility is growing double digits. We anticipate a 25% to 30% growth year-on-year on the numbers, and there will be a sharp increase once we add more geographies in the latter half of next year.

    — Fredun Medhora

Net Profit

  • PAT Net Profit · FY'29 · High confidence INR 90 crores
    We would definitely be on track to achieve those numbers as for now, whether we would be doing better than that. If we do, that's good for all of us.

    — Fredun Medhora

What to watch in Q3 FY26

Palghar Manufacturing Facility Expansion Progress

Next quarter / within 2 years
Current Commenced expansion, aiming to be one of the largest plants in the country within 2 years.
Target Continued progress on expansion, specific milestones or capacity additions.

Why it matters

Essential for enhancing capacity, improving operational efficiency, and meeting growing demand across domestic and international markets.

We have commenced expansion of our state-of-the-art manufacturing facility at Palghar to enhance capacity, improve operational efficiency, and support the growing demand across both domestic and international markets.

Q&A highlights

8 direct
Mix between in-house and outsourced manufacturing and its impact on cost efficiency Direct
So, in a cluster of 3 plants, we can make a huge number of products. However, considering the product portfolio that we need to add for our future, we have added 37 locations across India in the last 24 months, where we ourselves will manufacture products, which we cannot manufacture in our own facilities due to licensing constraints, due to other MOQs and stuff like that. Considering that right now, the outsourced products are hardly about 5% to 7%. And this will increase to about 15% to 20% in the coming years as we ourselves are also increasing the capacity of our manufacturing as I'm sure you must have heard that we have started an expansion. So hopefully, within the next 2 years, we should be one of the largest plants for a single location in the country.

Clarifies the company's manufacturing strategy, capacity expansion plans, and how outsourcing contributes to cost efficiency and margin improvement.

Asked by Pal Balar

Allocation of recently raised funds and expected impact on revenue growth and profitability Direct
The funds that is going to be used for new product development, team building, marketing, distribution, we are going to have some capex and we are going to have some reserves. The money that we have raised is going to be used as growth capital to expedite our journey towards 2029, 2030 to have sustainable growth in the new age businesses that we have gained. Our idea is to focus more on our new age businesses because the vintage business is going to grow for the next 7 to 9 years at around 15% CAGR because of the registrations and the existing channels in place. So, this will help as a catalyst and give a small impetus and boost to the same.

Details the strategic use of capital for future growth, focusing on new age businesses and supporting existing channels.

Asked by Pal Balar

Strategy for scaling mobility, nutraceuticals, and cosmeceuticals divisions Direct
That is why the mobility is growing double digits. We anticipate a 25% to 30% growth year-on-year on the numbers, and there will be a sharp increase once we add more geographies in the latter half of next year. Plus, we have also launched this last month, we launched Mobilitex, which is our physiotherapist targeted product division because a lot of the products, which are specialty products in the mobility range are used by the physiotherapists as well. For nutraceutical products, as I've said before, we are one of the only companies to have double-blinded clinical trials for nutraceutical products as well, which even much bigger companies don't have. We are giving complementary products to the allopathic formulations where the doctors understand the requirements for the same and ensure that such complementary nutraceutical products are part of the lifestyle.

Provides insights into the growth drivers and competitive advantages in these key non-Pet Care segments, including product differentiation and market approach.

Asked by Krishna Bahirwani

Details of the Wagr.ai acquisition, its scaling strategy, and competitive advantage Direct
So we want to have a central platform, a lifestyle kind of product for pet parents where right from the manufacturers who have good quality products, but no avenue to sell them, Amazon charges 25%, 30% markup, 40% markup on products, sometimes don't even get listing. And there are so many good small manufacturers who give excellent products, but no avenues to sell them. We want to be a platform where they can onboard, and luckily for us, we are not an e-commerce company, but we have the e-commerce platform and the science tech platform. So we can actually verify the products scientifically before they get uploaded on the website so that the pet parents are sure that a company who is in this industry for almost 3 decades have vetted the product before it is sold.

Explains the strategic rationale behind Wagr.ai, its unique positioning as a neutral, verified platform, and how it addresses gaps in the pet care market.

Asked by Keshav Toshniwal

Strategy for building a high-quality team, especially for new ventures like Wagr.ai Direct
So, our team for Wagr is already being built. They are one of the top people in the country in terms of the e-commerce space. They've already onboarded. They are starting their own teams. Hopefully, by mid-Jan or by first week of Feb, we should have the teams launch for Wagr and our online platforms for the teams, which we are hired for new product development. Luckily, we are very strong for a company our size in terms of F&D because of the background of my parents, both my parents are research scientists. So we have 40 people F&D in the plant, which is very rare for a company our size. So we are going to add more people there.

Highlights the company's focus on human capital, particularly in R&D and for new platforms like Wagr.ai, indicating a commitment to talent acquisition for growth.

Asked by Keshav Toshniwal

Plans to reduce the percentage of interest cost Direct
Yes, definitely. That is in the charts and the plan. So it is part of the growth strategy.

Confirms that managing interest costs is a strategic priority, implying efforts to improve financial efficiency.

Asked by Keshav Toshniwal

Primary focus on Pet Care versus other segments given recent acquisitions Direct
So yes, Pet is our focus. We have one of the best range of products in the country for Pet Care. But are we only a Pet Care company? Absolutely not. We have other almost 1,600 products, which are doing phenomenally well even in the allopathic range and even in the GX range. So, I think that should answer your question.

Clarifies the company's diversified strategy, emphasizing that while Pet Care is a focus, other established segments continue to perform strongly and are integral to the business.

Asked by Khushi Jain

Export strategy for new age categories Direct
We have launched Pet Care in Sri Lanka. We are getting our products registered right now in Philippines. We are also getting our products registered in the GCC area. So definitely, export we are present in 52 countries directly and indirectly. So, we are going to tap those channels. Right now, we wanted to create a strong affirmative base for our products in India. And then export market comes very natural to us. So, we are sure that once we build our base in India, we can immediately catapult into the various markets thereon.

Outlines the international expansion plans for new product categories, leveraging existing global presence and building on a strong domestic base.

Asked by Khushi Jain

2 min read 6 chapters

Detailed narrative

Strong Q2 & H1 FY26 Financial Performance

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.

Strategic Expansion in Pet Care Segment

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.

Product Innovation and Market Traction

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.

Manufacturing Capacity Enhancement

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.

Diversified Business Segment Growth Strategy

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.

Capital Allocation for Strategic Growth

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.

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