Fredun Pharmaceuticals Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Fredun Pharmaceuticals Ltd filed with BSE on 17 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Fredun Pharmaceuticals reported Q1 FY27 standalone total income of INR228.25 crores, up 90.44% year-on-year, with EBITDA of INR32.78 crores and net profit of INR13.17 crores. Management attributed part of the growth to booking additional customer orders at older prices ahead of a price increase in the prior quarter. Management also discussed growth plans across its new-age brands, GX division, pet care business including the Wagr platform, working capital, inventory days, and capex for the coming years.
Numbers mentioned
Total income: INR228.25 crores (Q1 FY27)
p. 3
“During Q1 FY27, stand-alone total income stood at INR228.25 crores, registering a strong Y-on-Y growth of 90.44%.”
Sakhi Panjiyara, page 3 of the filed PDF · View the filing
EBITDA: INR32.78 crores (Q1 FY27)
p. 3
“EBITDA stood at INR32.78 crores, reflecting a growth of 92.90% year-on-year growth.”
Sakhi Panjiyara, page 3 of the filed PDF · View the filing
EBITDA margin: 14.36% (Q1 FY27)
p. 3
“EBITDA margin improved to 14.36%, expanded by 18 bps year-on-year.”
Sakhi Panjiyara, page 3 of the filed PDF · View the filing
Net profit: INR13.17 crores (Q1 FY27)
p. 3
“Net profit of the quarter stood at INR13.17 crores, registering a growth of 94.63% year-on-year growth.”
Sakhi Panjiyara, page 3 of the filed PDF · View the filing
Net profit margin: 5.77% (Q1 FY27)
p. 3
“Net profit margin improved to 5.77%, expanded by 12 basis points.”
Sakhi Panjiyara, page 3 of the filed PDF · View the filing
GX revenue base: INR100 crores, INR110 crores (FY27)
p. 4
“And we are at a very small base of this year, about INR100 crores, INR110 crores only.”
Fredun Medhora, page 4 of the filed PDF · View the filing
Revenue run rate: INR850 crores
p. 8
“So we are currently at now a run rate of around INR850 crores.”
Fredun Medhora, page 8 of the filed PDF · View the filing
Working capital: INR170 crores, INR175 crores
p. 8
“We have a working capital of somewhere around INR170 crores, INR175 crores, which is not a high working capital for a company our size.”
Fredun Medhora, page 8 of the filed PDF · View the filing
Inventory days: 140, 135 days
p. 9
“We are looking at around 140, 135 days of inventory.”
Fredun Medhora, page 9 of the filed PDF · View the filing
Prior year revenue: INR635 crores (FY26)
p. 10
“But our road map for last year was INR570 crores. We achieved INR635 crores.”
Fredun Medhora, page 10 of the filed PDF · View the filing
EBIT margin: 9% to 10%
p. 11
“Yes. A follow-up to that is the EBIT margins have improved a lot. I think they stand at about 9% to 10%.”
Ketan Patak, page 11 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Blended revenue growth — 35% to 30% · next 3 years
stated as an aspiration by Fredun Medhora
p. 3
“So a blended growth of somewhere around 35% to 30% for the next 3 years is kind of on the charts and it's going to be a combination of all the new brands and our existing ones, plus the increase in the capacities that we are building currently at our own facility.”
Fredun Medhora, page 3 of the filed PDF · View the filing
GX business growth — 25% to 35% · next 5 years
stated as an aspiration by Fredun Medhora
p. 4
“We expect 25% to 35% growth in this business year-on-year, even for the next 5 years, we don't anticipate any hiccup because we are at a very small base.”
Fredun Medhora, page 4 of the filed PDF · View the filing
GX business growth — 30% to 35% · next 4 years
stated as an aspiration by Fredun Medhora
p. 4
“But for the next 4 years, we can easily consider around 30% to 35% growth on the GX line as well.”
Fredun Medhora, page 4 of the filed PDF · View the filing
Capex — INR30 crores to INR40 crores · FY27
stated firmly by Fredun Medhora
p. 6
“We have a plan of about INR30 crores to INR40 crores of CapEx in this financial year from now.”
Fredun Medhora, page 6 of the filed PDF · View the filing
Capex — INR35 crores to INR45 crores per year · next 2 years
stated firmly by Fredun Medhora
p. 6
“But for the next 2 years, we are looking at around INR35 crores to INR45 crores per year for the next 2 years.”
Fredun Medhora, page 6 of the filed PDF · View the filing
Quarterly growth — next quarters
stated as an aspiration by Fredun Medhora
p. 6
“In terms of the coming quarters, yes, we will see growth. Yes, we'll see growth.”
Fredun Medhora, page 6 of the filed PDF · View the filing
Inventory days — around 120 days · next 4 quarters
stated as an aspiration by Fredun Medhora
p. 9
“Hopefully, within the next 4 quarters, it will come to around 120 days.”
Fredun Medhora, page 9 of the filed PDF · View the filing
Pet care segment growth — 40% to 50% · next 3 to 4 years
stated as an aspiration by Fredun Medhora
p. 12
“So overall, we are looking, again, at 40% to 50% growth in those numbers for the next 3, 4 years.”
Fredun Medhora, page 12 of the filed PDF · View the filing
Annual revenue target — around INR800 crores · FY27
stated conditionally by Fredun Medhora
p. 10
“This year, our target was somewhere around INR800 crores. I think we are in line to achieve that.”
Fredun Medhora, page 10 of the filed PDF · View the filing
EBIT margin — near 12% to 13% · next 12 quarters
stated conditionally by Fredun Medhora
p. 11
“But we are on line that within the next, say, 12 quarters, we should be probably near that number.”
Fredun Medhora, page 11 of the filed PDF · View the filing
Functional foods revenue — INR18 crores to INR24 crores · this year
stated as an aspiration by Fredun Medhora
p. 12
“Our functional foods this year, we are looking at around INR18 crores to INR24 crores to sell only functional foods, but that will also include what we are doing right now as a product basket.”
Fredun Medhora, page 12 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management described two growth engines - new age brands growing 35-45% and vintage business growing 15-20%, blending to roughly 30-35% growth over the next 3 years.
Answered by Fredun Medhora
Asked by Vinod Shah: Where can Fredun be in the next 3 to 5 years given the strong quarterly growth?
p. 3
“One is our new age brands, which are growing at around 35% to 45% year-on-year.”
Fredun Medhora, page 3 of the filed PDF · View the filing
Management said GX is a small base currently and expects 25-35% growth for several years given low market penetration.
Answered by Fredun Medhora
Asked by Mayur Parikh: How large is the domestic growth opportunity for Fredun GX given its penetration in 17-19 states?
p. 4
“So GX is currently now in around 19 states. And we are at a very small base of this year, about INR100 crores, INR110 crores only.”
Fredun Medhora, page 4 of the filed PDF · View the filing
Management guided capex of INR30-40 crores for this financial year and a similar range for the following year.
Answered by Fredun Medhora
Asked by Shreya Bajaj: Can you guide capex for FY27?
p. 6
“We have a plan of about INR30 crores to INR40 crores of CapEx in this financial year from now.”
Fredun Medhora, page 6 of the filed PDF · View the filing
Management explained the boost came from booking additional orders at older prices before a price increase, and expects future quarters to grow at similar levels to Q1.
Answered by Fredun Medhora
Asked by Nabendu Mondal: Why was Q1 growth so strong versus history, and will future quarters maintain the pace?
p. 6
“This time, we have got a slightly higher growth, yes, because during last year, the last quarter, because of the price fluctuation increase, we generally carry more stock.”
Fredun Medhora, page 6 of the filed PDF · View the filing
Management said working capital was around INR170-175 crores currently, with about half in cash, and expects absolute working capital to rise with revenue growth.
Answered by Fredun Medhora
Asked by Khushi Jain: What is the working capital position and outlook for the next 2 years?
p. 8
“We have a working capital of somewhere around INR170 crores, INR175 crores, which is not a high working capital for a company our size.”
Fredun Medhora, page 8 of the filed PDF · View the filing
Management said interest costs are reducing due to better cash flows, lower limit utilization, and an improved credit rating.
Answered by Fredun Medhora
Asked by Ashish Malani: Has interest cost changed due to lower borrowings or lower rates?
p. 9
“Yes, because of our credit improval also, we went from a BBB to a BBB+.”
Fredun Medhora, page 9 of the filed PDF · View the filing
Management described differing gross margins across product lines and said margin improvement would come from a richer product mix and increasing GX pricing.
Answered by Fredun Medhora
Asked by Nirali Shah: What is the biggest margin lever over the next 2-3 years and will margin expansion accompany growth?
p. 9
“Pet care works at around 45% to 55%. Mobility works at around 40% to 50%.”
Fredun Medhora, page 9 of the filed PDF · View the filing
Management declined to commit to that number, reiterating the target of around INR800 crores with hopes to exceed it.
Answered by Fredun Medhora
Asked by Ketan Patak: Can revenue reach INR1,000 crores and EBIT INR100 crores this year?
p. 10
“No, I have never committed something like that. I would never commit.”
Fredun Medhora, page 10 of the filed PDF · View the filing
Management said functional foods aim to reach INR100 crore within about 3-3.5 years of launching new capacity, with overall pet care growth of 40-50% expected.
Answered by Fredun Medhora
Asked by Yash Gupta: What revenue and margin is targeted for the pet care business over the next 3-5 years?
p. 12
“That itself, we are planning to be INR100 crore say within 3 years from launching or within 3.5 years from launching our plants that we are building right now for increasing functional food capacity.”
Fredun Medhora, page 12 of the filed PDF · View the filing
Risks flagged
First quarter revenue is seasonally weaker due to the nature of order and distribution cycles.
p. 6
“As you have noticed last 20 years, our first quarter is always weaker amongst the 4 quarters, and that is because of the nature of the business.”
Fredun Medhora, page 6 of the filed PDF · View the filing
Inventory levels remain elevated to support the large number of SKUs and multiple brand launches.
p. 9
“Yes. So if you go to see our inventories, inventory days were quite high 4 years ago, when that time people were asking how come you have so many days of inventory.”
Fredun Medhora, page 9 of the filed PDF · View the filing
Absolute working capital requirement will rise as revenue scales.
p. 8
“So we will definitely -- will our absolute number of working capital increase? Yes, it will increase.”
Fredun Medhora, page 8 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.