Fredun Pharmaceuticals (539730) Q4 25/26 earnings summary

Executive summary

• Q4 FY 2026 total income reached INR 213 crores, up 27.27% year-on-year, with EBITDA at INR 29.13 crores, up 67.05% and net profit at INR 11.07 crores, up 56.47%.

• FY 2026 total income was INR 639.12 crores, up 40.08% year-on-year, with EBITDA at INR 94.79 crores, up 72.05% and net profit at INR 33.21 crores, up 59.59%.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, were approved, showing continued growth in revenue and profitability year-over-year.

• Board recommended a final dividend of 7% (₹0.70 per share) for FY 2025-26, subject to shareholder approval.

• Issuance of bonus shares in a 2:1 ratio approved, with bonus shares to be issued from reserves and/or share premium.

Financial highlights

• Standalone revenue for FY 2025-26 was ₹63,912.17 lakh, up from ₹45,626.82 lakh in FY 2024-25.

• Standalone net profit for FY 2025-26 was ₹3,337.24 lakh, compared to ₹2,046.41 lakh in FY 2024-25.

• Q4 EBITDA margin improved to 13.67%, up 326 bps; net profit margin at 5.19%, up 97 bps year-on-year.

• FY 2026 EBITDA margin rose to 14.83%, up 276 bps; net profit margin at 5.19%.

• New age businesses (pet care, mobility, nutraceuticals, cosmetics, dermaceuticals) are growing at 40%-50% CAGR, with higher gross margins (45%-90%).

Outlook and guidance

• Targeting 25%-30% top-line growth for FY 2027, with expectations to overachieve previous guidance.

• Margins expected to continue improving, aiming for 10%-12% PAT in the next few years.

• Board expects continued growth, supported by capital expansion and bonus issue, with dividend payout reflecting confidence in future performance.

• Transitioning business mix toward 50% new age and 50% vintage, moving to 70% new age in the next 5-7 years.