Quarterly results for Fredun Pharmaceuticals Ltd
Fredun Pharmaceuticals Limited – Q3 FY26 Results Summary
Announcement Date: 09 Feb, 2026
Financial Performance (Consolidated, INR Crores)
Unit Consistency: Filing figures were in ₹ Lakhs; all numbers below are converted to ₹ Crores for comparability.
Revenue and Growth
- Reported Revenue from Operations (Q3 FY26): ₹160.92 Cr (₹16,092.33 Lakhs)
- YoY Growth: +56.8% (Q3 FY25: ₹102.70 Cr)
- QoQ Growth: +10.7% (Q2 FY26: ₹145.29 Cr)
- No Excise Duty/VAT line item: Revenue is already net of GST; no adjustment required.
Key Expenses (Q3 FY26)
- Cost of Goods Sold (incl. R&D): ₹117.63 Cr (Materials) + ₹1.28 Cr (R&D Materials) – ₹7.35 Cr (Inventory change) = ₹111.56 Cr
- Employee Benefits: ₹8.15 Cr
- Other Operating Expenses: ₹14.92 Cr (Manufacturing/Service: ₹3.72 Cr + Other: ₹11.16 Cr)
Operating Profit (EBITDA) and Margins
- Operating Profit (EBITDA): ₹26.29 Cr
- Operating Margin: 16.3% (vs 12.9% Q3 FY25, +340 bps YoY; vs 15.4% Q2 FY26, +90 bps QoQ)
Net Profit and Margins
- Profit After Tax (PAT): ₹10.48 Cr (Q3 FY26)
- Net Margin: 6.5% (vs 5.2% Q3 FY25, +130 bps YoY; flat QoQ)
- EPS: Not disclosed in filing
Balance Sheet / Cash Flow
- No balance sheet or cash flow data provided for the quarter; no commentary on debt, cash, or capex.
What’s Different This Quarter
1. Revenue and Growth Momentum
- Record Revenue: Q3 revenue of ₹160.9 Cr is the second highest ever (after Q4 FY25: ₹167.4 Cr), and well above the Q3 historical average of ₹96.6 Cr.
- Growth Acceleration: YoY revenue growth of 56.8% is the fastest in the available data, and QoQ growth of 10.7% continues the recent acceleration (4Q avg QoQ growth: 16.7%).
- Sustained Momentum: This is the fourth consecutive quarter of revenue above ₹100 Cr, confirming a structural step-up.
2. Margin Expansion
- Operating Margin at New High: 16.3% is the highest margin on record (previous high: 15.4% in Q2 FY26), and 420 bps above the 8-quarter average (13.1%).
- Cost Leverage: COGS as % of revenue at 69.3% (vs historical avg 73.8%), indicating improved gross margin. Employee and other costs remain in line with historical ratios.
3. Profitability
- PAT at All-Time High: Net profit of ₹10.5 Cr is the highest ever, with net margin at 6.5% (vs 5.2% Q3 FY25).
- Interest Expense: Finance costs rose to ₹10.55 Cr (6.6% of revenue, up from 5.3% in Q2), but operating profit growth more than offset this.
4. Seasonality
- Q3 Outperformance: Q3 is not typically the strongest quarter, but this result is well above the Q3 average and even Q4 historical averages, indicating a break from past seasonal patterns.
Company Updates
- Audit: Clean, unqualified review report; no issues flagged by auditors.
- No Segment/Geographic Data: No breakdown provided; consolidated and standalone results are nearly identical.
- No Corporate Actions: No new projects, capex, acquisitions, or strategic changes disclosed.
- No Management Commentary: No forward guidance or qualitative outlook provided.
Historical Context & Notable Deviations
- Revenue and Margin Records: Both revenue and operating margin are at or near all-time highs, with growth and profitability well above historical norms.
- Cost Structure: COGS ratio improvement is driving margin expansion; no unusual increases in employee or other costs.
- Sustained Growth: The company has now delivered four consecutive quarters of strong revenue and margin expansion, marking a clear upward shift in scale and profitability.
Summary:
Fredun Pharmaceuticals delivered record revenue and operating profit in Q3 FY26, with both growth and margins at multi-year highs. The results mark a clear break from historical seasonal patterns and confirm a sustained step-up in scale and profitability. No segment or project updates were disclosed, and the auditor’s review was unqualified. No management outlook was provided.