Fredun Pharmaceuticals Ltd

Fredun Pharmaceuticals Ltd – Closure of Trading Window from 1 October 2026 till 48 hours after the Board Meeting to consider unaudited financial results for the quarter and half-year ended 30 September 2026

Warrant conversion and equity allotment

• Conversion of 1,20,533 warrants into 3,61,599 equity shares after 1:2 bonus adjustment.
• Allotment to non-promoter allottees completed on 16 September 2026.
• Total 3,61,599 shares of Rs 10 allotted; ranking pari passu with existing equity.
• Warrants issued on 29 December 2025 at Rs 1,250 per warrant, Rs 312.50 upfront.
• Balance consideration paid by warrant holders; rights exercised for conversion.
• Outstanding warrants for conversion after allotment total 7,467.
• Total warrants allotted: 1,28,000; converted: 1,20,533.
• Allottees are non-promoter investors.

Strategic investment and FY26 highlights

• Fredun acquires 26% stake in Goodman Vetcare Pvt. Ltd.
• Strategic partnership aims to accelerate growth and expand pan-India pet-health footprint.
• Goodman Vetcare revenue grew 30% annually to ₹23.6 Cr in FY26.
• FY26 revenue ₹639.12 Cr; EBITDA ₹94.79 Cr; PAT ₹33.21 Cr.
• Targets ₹40 Cr by FY27 and ₹56 Cr by FY28.
• Plan to open at least eight new stores across three cities.
• Warehouse planned in new city in H1.
• New stores expected to breakeven within 3–4 months.
• Aim to reach ₹100 Cr revenue by FY31.

Capital action

• 2,71,200 fully paid-up equity shares allotted on conversion of 90,400 warrants.
• Conversion follows 1:2 bonus issue adjustment, resulting in 3 equity shares per warrant.
• Balance consideration for warrants converted has been paid by the allottees.
• Equity shares allotted dematerialised and rank pari passu with existing shares.
• Warrants were issued on Dec 29, 2025 at Rs 1,250 per warrant with Rs 312.50 upfront.
• Total outstanding warrants post-conversion: 37,600.
• Allotment is on a preferential basis under SEBI ICDR regulations.

SKU expansion

• Furlicks SKU count expands from 6 to 22 as part of pet wellness expansion.

SKU expansion

• Furlicks SKUs increased from 6 to 22 as part of pet wellness expansion.

NSE trading permission

• Equity shares permitted to trade on NSE from 17 August 2026 (ISIN INE194R01017, symbol FREDUN).
• Face value Rs 10; equity securities.
• Company already listed on BSE; NSE trading approved per NSE circular 1355/2026 dated 14 Aug 2026.

Financial Performance

• Q1 FY27 stand-alone total income: INR 228.25 crores, up 90.44% YoY.
• EBITDA: INR 32.78 crores, up 92.90% YoY; EBITDA margin 14.36% (+18 bps).
• Net profit: INR 13.17 crores, up 94.63% YoY; net margin 5.77% (+12 bps).

Growth and Strategy

• Growth mix: new-age brands 35–45% YoY; vintage 15–20% YoY; blended ~35–30% next 3 years.
• GX expansion: present in ~19 states; base GX revenue ~INR 100–110 crores this year.
• GX growth target: 30–35% in GX; long-term 30–35% over ~4 years.

Capex and Projects

• CapEx plan: INR 30–40 crores in FY27; similar plan for next year.
• Maintenance CapEx: ~2% of revenue (based on ~INR 1,000 crores revenue).
• Next 2 years: INR 35–45 crores per year; goal to be one of the largest single-location plants by Dec 2028 / early 2029.

Domestic Market and Portfolio

• Cat food to be launched by Q3 FY27; pet care target around INR 100 crores in 3 years from launch.
• Functional foods: Jain variant performing well; cat biscuits planned; 42 variants planned.
• Pet care growth momentum: 40–50% CAGR projected for 3–4 years; current base ~INR 40–45 crores.

Working Capital and Financing

• Working capital run-rate ~INR 850 crores; current WC ~INR 170–175 crores; ~50% of WC in cash.
• Absolute WC will rise with revenue; aim for positive cash flows to reduce external financing.

Q&A Highlights

• FY27 revenue target around INR 800 crores; INR 1,000 crores not committed.
• EBIT margins currently ~9–10%; no commitment to 12–13% in 15–18 months; potential within ~12 quarters.
• Wagr portal: beta live; onboarding brands; ~1,500–2,000 SKUs; beta in 60–65 days; campaigns in ~90 days.
• Inventory days: ~120 targeted; current ~140–135; aim 110–125 days.

Meeting Details

• Date: 13 August 2026; Earnings conference call for Q1 FY27.
• Event: Earnings Conference Call by Fredun Pharmaceuticals Limited.

Participants

• Key company participant: Managing Director.

Purpose

• Purpose: Discuss unaudited Q1 FY27 results.

Additional Notes

• Audio recording of the call available on company website.

Meeting Details

• Date and time: Thursday, 13 August 2026 at 11:30 AM.
• Type and mode: Earnings conference call, group session, virtual dial-in.
• Event organizer: Kirin Advisors for Fredun Pharmaceuticals.
• Key company participant: Managing Director.
• Purpose: Discuss Q1 FY27 earnings and results.