Fredun Pharma - Fredun Pharma

📊 BSE: 539730 🏢 Pharmaceuticals 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total income grew 30.7% YoY to INR 456.3 Cr in FY25, driven by generics, pet healthcare, nutraceuticals, and cosmeceuticals. 9MFY25 operating revenue grew 25.03% YoY to INR 288.86 Cr.

Geographic Revenue Split

Exports to 52 countries across Africa, Southeast Asia, CIS, Latin America, and MENA. 65% of exports are under the Fredun Generics brand, while 35% are OEM exports.

Profitability Margins

Net profit margin improved to 4.6% in FY25. PAT grew 33.2% YoY to INR 20.8 Cr in FY25. FY24 PAT margin was 4.48%, up from 3.91% in FY23 due to a focus on high-margin orders.

EBITDA Margin

EBITDA margin improved to 11.09% in FY24 from 10.56% in FY23. Absolute EBITDA rose 41.6% YoY to INR 55.1 Cr in FY25, reflecting operational efficiencies and cost management.

Capital Expenditure

Commenced expansion of the Palghar manufacturing facility to enhance capacity. Issued equity shares of INR 16.63 Cr in FY24 to support capital structure and growth.

Credit Rating & Borrowing

Credit rating upgraded to IVR BBB/Stable (Long Term) and IVR A3+ (Short Term) in April 2025. Total bank facilities rated at INR 139.64 Cr.

⚙️ Operational Drivers

Raw Materials

Active Pharmaceutical Ingredients (APIs) represent the primary raw material, accounting for 70-75% of the total cost of sales.

Import Sources

Sourced globally to support 1,700 products; specific countries not disclosed, but bulk procurement is used to mitigate supply chain disruptions.

Key Suppliers

Not specifically named; however, the company utilizes 37 contract manufacturing sites to supplement its in-house Palghar facility.

Capacity Expansion

Palghar facility expansion is underway to support growing demand; currently produces 1,700 products in-house and utilizes 37 contract manufacturing sites.

Raw Material Costs

Raw material costs are 70-75% of revenue. Operating margins are highly susceptible to sharp changes in input prices, managed through bulk procurement strategies.

Manufacturing Efficiency

EBITDA growth (41.6%) outpaced revenue growth (30.7%) in FY25, indicating improved operational efficiency and disciplined cost management.

Logistics & Distribution

Distributes to 52 international markets; strategic control is maintained by owning or jointly owning product registrations for OEM exports.

📈 Strategic Growth

Expected Growth Rate

25-30%

Growth Strategy

Growth will be achieved by expanding the Freossi pet care brand (targeting 2032 leadership), scaling the Brace On mobility division, and increasing own-brand exports which currently represent 65% of export volume.

Products & Services

Branded generics (Anti-Diabetics, Anti-Infectives), Freossi pet supplements, Fredun Nutrition nutraceuticals, Bird n Beauty cosmeceuticals, and Brace On mobility aids.

Brand Portfolio

Freossi, Fredun Gx, Fredun Nutrition, Bird n Beauty (BnB), BeautyFred, Brace On, Chuu Balm.

New Products/Services

Upcoming launches in functional foods and targeted surgical products for pets; recently launched Fredna Vet Diagnostics, India's first dedicated advanced diagnostic center for pets.

Market Expansion

Aggressive expansion into pet care, cosmeceuticals, and mobility solutions; recently completed export registration in Sri Lanka for pet care and commenced sales.

Market Share & Ranking

Fredun is the only Indian company offering a complete integrated pet care portfolio, positioning it as a unique player in the domestic pet wellness ecosystem.

Strategic Alliances

Acquired 80% stake in an e-commerce platform for zero acquisition cost, aligning with founders to invest INR 9-12 Cr into the platform's growth over 3-4 years.

🌍 External Factors

Industry Trends

The Indian pharma industry is projected to reach USD 130 billion by 2030; Fredun is aligning with this by shifting toward high-value complex generics and specialty therapies.

Competitive Landscape

Faces competition from established mobility brands like Vissco and Tynor; Fredun differentiates by leveraging its pharmaceutical expertise to offer superior quality in these segments.

Competitive Moat

Durable advantage through 697 global registrations and a 35-year manufacturing track record; owning the IP for 65% of exports ensures these advantages are sustainable.

Macro Economic Sensitivity

Sensitive to global economic stability and domestic GDP (6.5% growth in FY25); a 25 bps repo rate cut to 6.0% supports the company's debt-funded expansion plans.

Consumer Behavior

Growing consumer preference for natural active ingredients in personal care is driving the Fredun Nutrition segment, which focuses on additive-free products.

Geopolitical Risks

Operating in 52 countries (including CIS and MENA) exposes the company to regional instabilities and trade barriers that could disrupt the 30.7% revenue growth.

⚖️ Regulatory & Governance

Industry Regulations

Highly regulated by global health authorities; any adverse change in regulatory policies in the 52 export countries could impact the business risk profile.

Environmental Compliance

Proactively manages risks related to product quality and safety; while specific ESG costs are not disclosed, compliance is integrated into the long-term sustainability framework.

Taxation Policy Impact

Remuneration to directors is affirmed to be in compliance with the Companies Act 2013; the median employee remuneration increase of 16.59% reflects a competitive wage policy.

Legal Contingencies

No material pending court cases or labor disputes were reported in the provided financial and operational summaries for the 2024-25 period.

⚠️ Risk Analysis

Key Uncertainties

Primary risks include the elongated working capital cycle (172 days) and the volatility of API prices, which represent 70-75% of the cost of sales.

Geographic Concentration Risk

Revenue is spread across 52 countries, but manufacturing is concentrated in Palghar, India, making the company vulnerable to local regulatory or supply chain disruptions.

Third Party Dependencies

Utilizes 37 contract manufacturing sites; while this provides flexibility, it requires intense quality oversight to maintain the company's 697 global registrations.

Technology Obsolescence Risk

Mitigating digital risks by investing INR 9-12 Cr in an e-commerce platform and adopting digital quality systems to maintain global manufacturing standards.