Fredun Pharmaceuticals Ltd (NSE: FREDUN) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
Fredun Nariman Medhora — Managing Director and Chief Financial Office
Analysts:
Unidentified Participant
Sakhi Panjiyara — Analyst
Abhi Jain — Analyst
Pritesh — Analyst
Sayandeep — Analyst
Dixit Doshi — Analyst
Kush — Analyst
Keshav Toshniwal — Analyst
Presentation:
operator
Ladies and gentlemen, Good day And welcome to Q3 and 9 months FY26 results conference call of Freedom Pharmaceutical Limited hosted by Kiran Advisors Pvt. LTD. As a reminder, all participants line will be in listen only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing STAR then zero on your touchstone phone. Please note that this conference is being recorded. I now hand over the call to Ms. Sakhi Manjiyara from Kirin Advisors Private Limited. Thank you. And over to you ma’.
Am.
Sakhi Panjiyara — Analyst
Good day everyone. On behalf of Kirin Advisors, I welcome you all to the Q3 and 9 months FY26 earnings conference caller Frieden Pharmaceuticals Ltd. We have today with us Mr. Friedan Medon, Managing Director of the company along with members of the management team, Mr. Rakesh, Mr. Gaganan, Mr. Khan, before handing over the call to Frieden sir to address your questions, let me briefly walk you through the company’s performance for the quarter and nine months. Ended FY26 reading the Q3 FY26 total income stood at 160.92 crores registering a strong growth of 57% year on year. EBITDA came in at 26.34 crores reflecting a robust growth of 99% year on year.
EBITIDA margins improved to 16% expanded by 384 basis points. Net profit for the quarter stood at 10.48 crores nearly doubling with a growth of 96% year on year. Net profit margin improved to 7% while EPS stood at 22.19 for the nine month period. Total income reached four hundred and twenty six crores marking a 48% year on year growth. EBITDA stood at 65.66 crores up by 74% year on year. While EBITDA margin improving to 15% and expansion of 237 basis points. Net profit increased to 26.98 crore delivering a strong 96% growth. Year on year. Net Profit margin improved to 6% and EPS stood at 57.13 rupees.
Overall, the company has demonstrated strong revenue growth along with meaningful margin expansion and improved profitability during both the quarter and nine months period. With that brief overview, I would now like to hand over to Friedan sir for taking your questions. We can now open the floor for Q and A.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on Their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in this conference, please restrict your question to one per participant. Should you have a follow up question, please rejoin the queue. And also please note, do not ask repetitive questions.
Ladies and gentlemen, we will wait for a moment while the question preassembles. The first question is from the line of ABHI Jain from AJ Capital. Please proceed.
Abhi Jain
Hi, good afternoon. Am I audible?
operator
Yes, yes sir. You’re audible.
Abhi Jain
Right. Perfect. Good afternoon to the team. Good afternoon, Mr. Freddy. I had a two part question. The first part of that question was that given the growth that you’re seeing, obviously it is higher than what you had anticipated. Do you see any immediate requirements of funds? Obviously you’ve done a QIP and raised some funds but and you said that the working capital cycle improvement will take some time. So I am sure that cash generation might be chopper blocked for the short term. But in the next 12 to 18 months, do you think that the funds at hand are sufficient for the kind of growth that fredhuntama is seeing or do you think that there will be another round of fundraise that would be required?
Fredun Nariman Medhora
Okay, that’s both part of your questions.
Abhi Jain
Yeah, sorry. And the second part is that given, you know, growth that you’re seeing and obviously the newer parts of the business, the Nutri and the pet care must be contributing handsomely to the growth. I think that the next two to three years, obviously the kind of guidance that you have given seems to be a bit conservative. So can you just throw some light on that also? That’s it. Thank you.
Fredun Nariman Medhora
So addressing your first question, we are expanding quite rapidly. We are right now also increasing our production capacities, current plants and we have also added new partner facilities where we ourselves manufacture across various locations.
So we have around 37 of those currently. The way we are anticipating that the new brands which we have launched in the last two, three years are suddenly taking a lot of traction. The growth that you have seen is because many of our products across various brands that we have launched in various segments that we’ve launched have picked up quite well and are doing very well in the pockets that we have launched them. So yes, we do not envision any sudden need of funds in the next 12 to 18 months. Business is dynamic. We are growing.
If there are a need of funds maybe after 18 months or 24 months or 30 months we might look into it. If we have to raise funds for a different division or something. We might. There is nothing on the table right now and there is no immediate need for any funds for that. The second part of your question was if you can understand that given the growth that we are seeing in the company and obviously the conservative numbers. If you have seen my, if you have seen my, if you have seen my BSC guidances from 2016 onwards every single guidance has been conservative.
I if because I do not you know believe in, you know just giving a number and then if I overachieve that number, I’m comfortable. I don’t want to be ever in a position where I’m under achieving a number. And we have to take into fact market situations. You have to take into factor so many of the situations that arise on a day to day basis. It’s better to be conservative. Our conservative numbers are also robust growth. Our investors, our partners, the people who believe in us need to be in sync with the journey. And that is what I want.
If we overachieve, yes, we might have a better guidance maybe next year or the year later. We are on track to achieving our guidances. We have taken buffers for any unforeseen circumstances that may arise. But currently the trajectory on which multiple of our divisions are going I think we are quite comfortable in overachieving those.
Abhi Jain
Okay, thank you sir. Thank you for that.
operator
Thank you. The next question is from the line of Pritesh from Lucky. Please proceed.
Pritesh
Yeah. Hello sir. So just one question. In the nine months what is the growth in the legacy business and the size of the legacy business and what is the size of the new age business? If you would just give that split for the nine months.
Fredun Nariman Medhora
Yeah. So I have explained this in previous things. I’ll again say the legacy business is pegged to grow at somewhere around 12 to 18%. Hello.
Pritesh
I was asking your performance in the nine months, what it has done.
Fredun Nariman Medhora
Yes, yes, I, I, I will, I will address that. To grow at around 12 to 18 year on year for the next five to six years based on our registration. So last year, Last year, Last year our exports, our direct Exports were about 118 to 120 crores. Our institutional sales was around 40 crores. Our third party business and our tolling business constituted for about 100 crores. So on that basis this year we will on the nine month basis, proactively we have grown at around 15% to 20% on that.
Pritesh
Okay, can you then tell us what is the size of the. Yeah. Ma’, am,
operator
can you please rejoin the queue?
Pritesh
Why?
Fredun Nariman Medhora
Hello. Hello. I’ll answer that question. Hello. Hello. Hello. Yeah. Yeah, yeah. So I. I am just. I’m just. I just. I just told you. So the institutional sale, the export business and the third party business on last year on that about 110 crores, 45 crores and 90 crores will grow at around 15 to 18% which it has grown. So that number will be somewhere around close to that same number as well. Plus or minus a crore or two.
Pritesh
And how much is the size of the new business in the nine months? How much portion of your revenue is now new business?
Fredun Nariman Medhora
So the remaining portion of that business is the new age business. So this year we are pegged this year at year end closing we expect to do somewhere around 60 crores of our GX business. Around 42 crores of our pet care business. Around 26 crores of our nutritional business. And that gives us a head Runway to reach around 600 crores. And we are comfortable and around 550, 570 to 580 crores. And we will easily achieve those numbers. So the remaining part is the new age business which includes mobility, which includes dermacetics, which includes cosmetics.
Pritesh
And can you update us on the. For the biscuits line, the pet biscuits line, what has it started and what revenue run rate it is?
Fredun Nariman Medhora
The pet Bix line is doing phenomenally well. The revenues and numbers right now we are adding more and more divisions right now. Products we started production in the second quarter of. Actually third quarter of this year. So this quarter. So the numbers you will start showing in from this quarter and the next quarter onwards.
Pritesh
Okay.
Fredun Nariman Medhora
Numbers will start showing from this this quarter. The numbers will start showing from this quarter.
Pritesh
Okay, thank you sir.
Fredun Nariman Medhora
Bye. Thank you very much.
operator
Thank you. Ladies and gentlemen. In order to ensure that management is able to address question from the participant in this conference please restrict your question one per participant. Should you have a follow up question, please rejoin the queue. And also please note, do not ask repetitive questions. The next question is from the line of Sayyandeep from Eureka Stock and share broking services. Please proceed.
Sayandeep
Hi.
operator
Yes. You’re audible sir.
Fredun Nariman Medhora
Yes.
Sayandeep
First of all thank you for giving me the opportunity and congratulations for the good set of numbers. I just have a simple bookkeeping question. We have seen steep jump in finance cost as well as other expenses. Can you throw some light?
Fredun Nariman Medhora
Any. Any growing company and rapidly expanding company has always requires working capital. So certain things plus we are change our banks also so and we have taken New machinery loans also. So those all add up to the finance cost part of it. This will decline over the next two to three quarters because our fundraise money has come in this quarter, actually on the third quarter and we are going to sizably use it for working capital as planned. And also we will have our own internal cash flows which are improving, as you can see. So it’s part of growing a company.
Sayandeep
Okay, sir, I just want to know about margin side. We have seen improvements in gross margin over the last two, three years. I just want to know does this margin sustainable for next two to three years and what is your outlook on key raw material cost over the next.
Fredun Nariman Medhora
Two, six years as any number grows? You guys are in the number business. Any number grows, the bigger it gets. You cannot sustain the same percentage growth on a smaller number. You can sustain a percentage growth on a larger number. It is not possible to sustain a number. It’s not technically possible, but because our numbers are small right now, in the foreseeable future we are okay to see it. There will be a sudden growth in the profits even further in the next two to three years because of the operational efficiencies coming into our high margin business, especially dermacytics, especially our pet care, especially our new line of businesses.
So you might in fact see a further jump in the profits coming in the next six to seven quarters. And then it might have a gradual growth phase from there. So that’s about it.
Sayandeep
Okay, thank you.
operator
Thank you. Before we take our next question, a reminder to all participants. Anyone who wishes to ask question may press Star and one on their Touchstone telephone. I repeat, participants who wish to ask question please press Star and one on their Touchstone phone. The next question is from the line of Dixit Joshi from Whitestone Financial Advisors. Please proceed.
Dixit Doshi
Hello.
Fredun Nariman Medhora
Hello.
operator
So the pilot has been disconnected. Can we move further?
Fredun Nariman Medhora
Yes, sure.
operator
The next question is from the line of Gaurav Shukla from Finn Investors. Please proceed.
Unidentified Participant
Good afternoon sir. I’m audible.
Fredun Nariman Medhora
Yes. Good afternoon
Unidentified Participant
sir. Congratulations for good set of numbers and thank you for giving me chance to ask question. Sir, one thing I want to ask that. That that deal has happened. India and us. And India and you. What will be effect of this deal? In this our company performance
Fredun Nariman Medhora
there will be no effect. We don’t sell any products to us. And neither do we sell any products to Europe. Neither do we intend to sell any products to us. The companies which are manufacturing in Europe who are planning to sell to India will still be extremely non competitive into certain of Our products that we do.
So overall the products don’t bother us. We are predominantly focused for the next decade to manufacture in India. For India. So it does not affect our plans, it does not affect our numbers. Doesn’t affect our profitability or our sales at all.
Unidentified Participant
Okay. Sir, in last con call sir, it is written that we have outlined. You have said that in FY29 our revenue will be fully driven by vintage exits. And FY32 51 will be come from US business. That’s why I bounced.
Fredun Nariman Medhora
Is not US. It’s new age business. New age not US. 51% of a business will come from new age business.
New age business is the brand us.
Unidentified Participant
Okay. Thank you sir.
Fredun Nariman Medhora
Ah, maybe it might be a mistake. I. I will I get corrected. Not US business. New age business
Unidentified Participant
in last transcript us written. So I watched. Okay. Thank you.
Fredun Nariman Medhora
Okay. Okay. No, no. Yeah, yeah.
operator
Thank you. The next question is from the line of Kush from Care pms. Please proceed.
Kush
Hi, I wanted to understand about the. Seasonality in the business. So generally March quarter is heavy in terms of revenues whereas margins are lower versus normal average. So what would be the reason for the same?
Fredun Nariman Medhora
See like. Like all sellers, we are selling to importers, distributors, wholesalers. So like how we have a sale target, they have a purchase target. So if you see our numbers, if you see our business from 1995 onwards, our last quarter is always higher. It’s a part of the business that we are in. And when you have a higher number, you have to give schemes. You have to give discounts.
Month end schemes, year end closing schemes. Each distribution, each retail, I mean CNF and all those have targets that. So definitely people would want to buy more. It allows our products to penetrate further into the market and it allows our visibility of our products further. The idea of giving a product in bulk and sometimes giving a slight discount also on it allows that. And the more our products stay on the shelf, someone else’s products is not on that shelf. And that allows us further growth as we go. As we go into a new age business that seasonality will change because we are doing the pet care ethical marketing and also OTC marketing.
We are doing cosmetics, OTC marketing and dermacetics ethical marketing. We are also planning specialized thermocytics ethical marketing, we are entering into hormones. So over the next once five to six years the strong change in the last quarter will decline. I think all quarters will be the same. But the way our business goes, the first quarter is always the weakest. The last quarter is always the Strongest.
Kush
Got it, got it. And margins in last two, three quarters have been improving. What would be the sustainable margin that we feel for our current business, say. Over the next one, two years?
Fredun Nariman Medhora
See anything, anything, anything over 5, 6% is a great margin. At the rate that we are growing, because our top line is growing, our margins are also growing. Margin growth, you will see a sudden increase after a few quarters once the cost efficiencies of the new age brands start kicking in because they are intrinsically higher gross margin products. 50, 60, 70% gross margin product. But right now we are in the placement. In some places we are in penetration, some places we are in repeat sales and diversifying our folio. So cost efficiencies, once they start hitting in, it will definitely hit our numbers.
So if you, if you see the margins, I, I would say what we have right now, we should consider it. As I’ve, I said earlier in the call, I love being conservative.
Kush
So, 5, 6%. You mentioned Pat margins.
Fredun Nariman Medhora
Yeah, that’s, that’s about it.
Kush
Okay. Yeah, okay. And how do you. Yeah, please continue, sir.
Fredun Nariman Medhora
Yeah, yeah, so that, that, that will improve over time as I’ve explained to you. Why.
Kush
Yeah, sure, sure, sure. And so continuing on the answer. How do you see the trajectory of new age business from year onwards, say by FY27 28, how do you see the growth and where do you see the mix?
Fredun Nariman Medhora
I’ve said in multiple calls before, by 2029, 2030, 51% of business should be from. That’s what we are targeting. We are growing because we have smaller numbers right now, 20, 25% growth in each of the divisions year on year.
Some divisions are growing even faster because they have a smaller base. So we are quite comfortable in what we have. When you are launching a product across multiple states, you cannot directly determine 5% growth and 10% growth and 50% growth because there are a lot of challenges that take place in launching the product. However, we have surmounted those challenges and we have still achieved a 2025% growth year on year on the new brand since we have launched it since 2020. So we are comfortable on that growth path. The vintage business will grow at between 12 to 18%.
Kush
Right. Okay, got it. Thank you so much.
operator
Thank you. The next question is from the line of Dixit Doshi from Bytestone Financial Advisors Private Limited. Please proceed.
Dixit Doshi
Yeah, thanks for the opportunity. So my first question is if you can give as of December, how much is our inventory, trade receivable and loan?
Fredun Nariman Medhora
Yeah, so those numbers are already in our balance Sheet and our things which are declared inventories are on the same level as the quarter before. Absolutely same level. And trade receivables have drastically reduced. But they are again dynamic as we are into local sales. Once it goes to the distributor level, the orders are cyclic. You don’t send. We are not D2C company. So when in certain months you will have higher sales, certain months you will have lower sales in December, I mean on the 31st of March if we have to consider in Indian market and at least a 90 day credit period on 31 March you will see a slightly higher debtor sales.
If you see in the first quarter you will see lower debtors sales. Same thing happened last calendar year also. So this financial year also last year our inventory, our receivables were 177 crores. But we received almost 380 crores of receivables till September 2025. So again our receivables went down to around 80, 85 crores even after the turnover increasing by 50 to 60%. So this is not a pharma sales is where you have bulk sales and you don’t have a daily sales in the sense you don’t sell everything daily. On per day average it is for 10 days you will have a lot of sales and for two, three days because of the production cycles.
Because the innate nature of business has the cyclic nature. So and quarter, sometimes Production times are two months, sometimes they are two and a half months, sometimes they are 1.5 months. So depend quarters are sharp three months. So numbers will change quarter and quarter. But if a sharp financial analyst will understand the nature of business and see the kind of receivables averaged over the last two, three quarters, they will understand that yes, the receivables are quite robust and the creditor levels are remaining the same and the debtor levels are same and same. Plus the inventory is identical to what it was last quarter.
Dixit Doshi
Okay, so. So more or less. No, no, I am not asking the new question, just confirm. Confirming. So what you are saying that the trade receivables and inventory are more or less at similar level of what it was reported in September?
Fredun Nariman Medhora
Yes.
Dixit Doshi
Okay. Okay, I’ll join back in the queue. Thank you.
operator
Thank you. The next question is from the line of love from Blue Ocean Asset Management. Please proceed.
Unidentified Participant
Yeah, hi, can you hear me?
Fredun Nariman Medhora
Yeah, hi. Hi, how are you?
Unidentified Participant
Very well, thank you. I just have one question and one suggestion. My suggestion is that these, you know, as part of your quarterly earnings release, please you know, provide us the breakup of the legacy business and the new Edge business. And that’s the metric that most investors are actively trying to figure out. The second question that I, the question that I have is the legacy business, with your current sort of establishment and cost, what kind of growth can you, can you get in the, in the new age business? And when do you think sort of the operating leverage will start to play out?
Fredun Nariman Medhora
Yeah, as I’ve said earlier, the vintage business, that’s what I want to call it, the legacy business, called the vintage business. And that will be growing at around 12 to 18% year on year for the next five to seven years. The reason why it will grow at this percent is because we have about 1300 to 1400 registrations in the pipeline. Those registrations are going to keep on kicking in and they’re going to come on new age. I mean in the new age business, the growth is about 20 to 25%. Operational efficiencies in certain parts, certain divisions.
We cannot launch all states at the same time. We have to launch Maharashtra. Then after, after say three months, six months, we launched say Karnataka. Then we launched Kerala. We can’t launch the whole India at the same time. Now Maharashtra will start getting operationally leveraged, say within nine months. But now you have started Karnataka, so you are again going to be putting in funds and energy into that state. So considering that we are doing this off and on for the last four and a half years for multiple brands, in the next five to six quarters you will see a good set of numbers.
And that is what I told the other participants as well and a few other, I mean the same questions that were asked earlier, that yes, between five to seven quarters you will see some kind of leverage coming in some kind of brands.
Unidentified Participant
So the only request I have is, you know, going forward, your quarterly earnings release, please try and give the revenue breakup between Vintage and the New Edge business. So that’s, that’s the only suggestion I would do that. Thank you.
Fredun Nariman Medhora
It’s a good suggestion. We’ll keep that in mind. Thanks. Appreciate it.
Unidentified Participant
Thank you.
operator
Thank you. The next question is from the line of Ishika from Pre Nudie Ventures. Please proceed.
Unidentified Participant
Yeah, hi. Thank you for taking my question. I just wanted to know, as the new age business scales and takes a larger share of revenue in the mix over the next two to three years, how should we think about the manufacturing mix? Specifically the CMO versus in house manufacturing, will the new age business be more asset light or will it increasingly be manufactured internally?
Fredun Nariman Medhora
Yeah, good question. There are certain products, I mean of Course, one plant cannot manufacture every single product. We are into mobility, mobility products. We are into pet care, we are into herbal, nutraceutical, we are selling to pharmaceuticals. We have 1700 products but at the same time we have other things. So there is a lot of variants in kind of the product type. Now we, in our plants, in the cluster of three plants that we have and the fourth one that we’ve just started, we are making somewhere close to around 2000 kind of SKUs. But definitely say like in our mobility range we have walkers and we have wheelchairs and we have stove.
So we definitely not going to start a wheelchair plant and a walker plant at least anytime soon. So of course the new things that we are going to start is going to be asset light. It suits our things. Also we don’t want to start manufacturing everything we sell. We want to use someone else’s cost efficiencies which have been achieved and use those to penetrate further into the markets that we already have. So say four to five years from now more and more products will be manufactured, not directly by us.
Unidentified Participant
Okay, understood. Thank you so much.
operator
Thank you. The next question is from the line of Keshav Tosnival from Karnatak Capital. Please proceed.
Keshav Toshniwal
Hi Fredhun, congratulations for a great set of numbers. Again, like I, I wanted to understand more with regard to mobility and beauty Fred brand, especially with regard to mobility. Like I see like you visit any chemist shop as there is a pamper section, there is a mobility section too. For a company like us who, who has always believed into penetration of distribution like at least one product of Fredone should be there in like every chemist shop. How, how is the mobility going for us and three, four years down the line how big you see this mobility brand getting created? Because in mobility it’s just that product, right?
Fredun Nariman Medhora
Yes, yes.
So I mean, you know people, I’ll just explain on the mobility front, people right now relate to mobility as knee brace, leg brace, back brace, right? But it has more than 800 products. We have also launched a mobilitics brand which is our brand. Our auto brand is called Brace on, our say BP meters, our glucometers is called DG on and our nebulizers are called Nebon. We have also launched a physiotherapist product related brand called Mobilitics Freedom Mobility which also comes under the Fredon mobility umbrella. So we are not only planning, we want and we will ensure that our products are there in most of the retail outlets.
We are adding almost 30, 40 retail outlets every Week in the markets that we are doing right now consistently. The physiotherapy part of it are also being launched in April where it will go to all the physiotherapists and those products will be specifically tailored for the physiotherapist which the physiotherapist can further sell to their clients and also utilize themselves. So that will encompass the entire range of the mobility segment and sector. So we are doing quite well, Quite well. And step by step we are going to launch these products. It is growing almost at 25 to 30% year on year.
This year we’ll anticipate further growth also. I mean I’m talking about the coming year because we are adding another four to five states and that will kind of complete almost 60% of India. These are volumetric products. So we cannot penetrate like a pharma product where you can just put in 10,000, 20,000 pack this. You have to put in 100 chairs, you have to put in 300 chairs. You have to get the market demand for it. You see the products, they will feel it, they will have a tactile understanding of the product. Then they will place further orders because these are volumetric products.
So penetration for any company in mobilitics is in mobility segment is slow. But it is for us. We have got such a good response that we are now selling I think one of the highest number of wheelchairs in the state. In Maharashtra at least we are selling practically most of the. Most of the places in Mumbai have our products and that will continue to go across states.
operator
Sir, the line for the participant has been disconnected. Can we move further? The next question is from the line of Pal Balhar from three Netra asset managers. Please proceed.
Unidentified Participant
Hello. Thank you for giving me the opportunity and congrats on good set of number. Sir, I just wanted to ask you like do we see any kind of inventory write off in near future?
Fredun Nariman Medhora
Inventory write off is not possible in our. In the kind our write off of inventory is like thousand rupees, fourteen hundred rupees, seven thousand rupees like that. Sometimes if there is any damage, big inventory generally in pharmaceuticals the innate inventory of the raw material is around for three to five years. So there is no question of any pertinent right off at this point in stage or even in the conceivable future.
Unidentified Participant
Okay, thank you. That’s it. From my side and all the best.
Fredun Nariman Medhora
Thank you.
operator
Thank you ladies and gentlemen. That was the last question from the participant. I now hand over the conference to Ms. Sagi Panji. From KDN Advisors Private Limited for closing comments. Over to you, ma’. Am.
Sakhi Panjiyara
Thank you everyone for joining the conference caller, Friedin Pharmaceuticals Limited. If you have any queries, you can write to us@researcherinadvisors.com Principal thank you. Good day.
Fredun Nariman Medhora
Thank you. God bless. Thanks.
operator
Thank you. On behalf of Kirin Advisors Private Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.