Ladies and gentlemen, good day and welcome to Fredun Pharmaceuticals Limited Q2 and H1 FY 2026 results conference call. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations of the company as of the date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participants' lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Manani from Kirin Advisors. Thank you, and over to you. Thank you. On behalf of Kirin Advisors, I welcome you all to the conference call of Fredun Pharmaceuticals Limited. From the management team, we have Mr. Fredun Medhora, Managing Director and Chief Financial Officer, and we also have Mr. Rakesh, Mr. Gunjan, Mr. Kunjan from the management team. Now, I hand over the call to Mr. Kunjan for opening remarks. Over to you, sir. Thank you for joining Fredun Pharmaceuticals Limited Q2 and H1 FY 2026 earning conference call. To start off, we have further made proposals and expanded our goals. The company is a diversified healthcare company with a presence across India and 52 international markets. Over the years, we have evolved from manufacturing into a holistic healthcare enterprise, offering a broad branded standards: nutraceuticals, cosmeceuticals, animal healthcare, and mobility needs. We have over 1,200 products under registration and 697 products already approved globally. Our manufacturing is in Tiger, supported by 37 contract manufacturing in Hannibal, Alamedi, and. I'm really sorry to interrupt you, sir, but your voice is breaking soon. Can you hear now? Yes, sir, please. We have commenced expansion of our state-of-the-art manufacturing facility at Tiger to enhance the capacity, improve operational efficiency, and support the growing demand across both domestic and international markets. We also hold India's only P10 for bone graft, underscoring our focus on innovation and differentiated healthcare solutions. Q2 FY 2026 was another strong quarter. Total income stood at INR 145.29 crore, growing by 35% year-on-year, while EBITDA grew by 60% to INR 22.34 crore, with margin improving to 15.37%. Net profit grew by 128% to INR 9.73 crore. For H1 FY 2026, total income stood at INR 265.15 crore, grew by 42%. EBITDA grew by 61% to INR 39.33 crore, and PAT grew by 96% to INR 16.50 crore. We witnessed a healthy momentum across all our new age verticals, with a strong contribution from nutraceuticals, pet wellness, and healthcare. Operating cash flows also turned positive, underscoring steady improvement in efficiency and profitability. Through the acquisition of OnePet Stop Private Limited, a tech-enabled pet grooming and wellness platform serving over 4,000 recurring pet parents, we entered the organized pet care service market. The platform offering at-home grooming service and a digital interface complement are a pre-assured brand, enabling us to integrate products and services to reach a broader consumer base. We also acquired Bredor.ai, a pioneering pet tech platform that introduced GPS tracking, health monitoring, and veterinary consultation service in India. With over 140,000 pet parents, patented technology, and a strong veterinary network, Bredor.ai enhanced our vision of building a connected technology-led pet wellness ecosystem. As a part of our strategy to expand the animal healthcare vertical, we launched Snacky Gene, India's first pure-gene functional food for pets, under the pre-assured brand. Developed through in-house R&D, Snacky Gene is 100% vegetarian functional pet snack enriched with calcium and essential nutrients to promote bone strength, digestion, and immunity. With 12 tons already sold through pre-orders, the product is being rolled out across six major cities through veterinary clinics, online platforms, and retail partners. The response reflects the industry's growing shift towards ethical, plant-based, and functional pet nutrition. As one of our early movers in India organized pet care industry, we continue to build leadership through innovation, integration, and consumer trust. Under the pre-assured brand, we are developing a holistic ecosystem that connects products, services, and technology to address every aspect of pet wellness. The Indian pet care industry is witnessing strong growth, and it's projected to reach $6 billion by 2030, driven by rising adoption, urbanization, and growing awareness of preventive healthcare. This positions Fredun Pharmaceuticals as a key player in this evolving market, backed by our expanding pre-assured portfolio and technology-driven initiatives. Looking ahead, we have outlined a clear strategic roadmap. By 2029, our revenue will be fully driven by vintage generics, and by 2032, over 51% will come from our U.S. business. Our long-term vision is that by 2032, no pet in India should be born or die without using pre-assured products, reflecting our mission to build India's most trusted and comprehensive pet wellness ecosystem. We believe the progress achieved in the first half of FY 2026 has built a strong foundation for sustainable growth. With continued focus on innovation, operational excellence, and disciplined execution, Fredun Pharmaceuticals is well positioned to deliver long-term growth. Thank you. Team, can you go ahead with the question- and- answer now? Yeah, sure. Thank you. Ladies and gentlemen, we'll now begin with the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use headsets while asking a question. Also, investors are requested to ask only one question per participant. Please avoid repeated queries and refer to the transcript for any points already covered. We'll wait for a moment while the question queue assembles. Our first question comes from the line of Paul Balar from Trinity Asset Managers. Please go ahead. Thanks for the opportunity, sir. I wanted to ask you about the mix between in-house manufacturing and outsource production, and how this mix influences your cost efficiency. Yes, hi. Nice question. We ourselves make around 1,700 products. We have a folio of over 1,700 products. Most of the products, we can manufacture at our end. We have a cluster of three plants and a unique mix where we have a block for Ayurvedic, we have a block for FSSAI, we have a block for cosmetics, we have a block for allopathic formulations, and we have a separate block for nutraceuticals. Also, a separate block for veterinary and pet care. In our cluster of three plants, we can make a huge number of products. However, considering the product folio that we need to add for our future, we have added 37 locations across India in the last 24 months where we ourselves will manufacture products, which we cannot manufacture in our own facilities due to licensing constraints, due to other MOQs and stuff like that. Considering that, right now, the outsourced products are hardly about 5%-7%, and this will increase to about 15%-20% in the coming years. As we ourselves are also increasing the capacity of our manufacturing, as I'm sure you must have heard that we have started our expansion. Hopefully, within the next two years, we should be one of the largest plants for a single location in the country. Our in-house capacities are also increasing, but because of the product folio, we will be adding more locations where we ourselves are contract manufacturing because apart from pet care, we are also doing mobility. We are also doing nutraceuticals and dermaceuticals. Many of the products which we cannot make at our end, we are manufacturing. It would not have a great effect on our margins. In fact, the reason why some products we outsource is because we get a better price because the other company is manufacturing more of that particular kind of product. We get better economies of scale manufacturing it at somewhere else. Overall, it will not have any great ramification. In fact, it might actually improve our margins to understand the right kind of product mix with the right kind of manufacturing. Okay. Thank you for the detailed answer. I wanted to ask you that you have recently done the fundraising. Could you please share how these funds are being allocated across the current and upcoming CapEx projects and what kind of impact you expect on revenue growth and profitability over the next two to three years? Yes. I have mentioned that in our previous calls also. I'll explain again. The funds are going to be used for new product development, team building, marketing, distribution. We are going to have some CapEx, and we are going to have some reserves. The money that we have raised is going to be used as growth capital to expedite our journey towards 2029, 2030 to have sustainable growth in the new age businesses that we have gained. Our idea is to focus more on our new age businesses because the vintage business is going to grow for the next seven to nine years at around 15% CAGR because of the registrations and the existing channels in place. This will help as a catalyst and give a small impetus and boost to the same. It will also help us have some reserves, and a lot will go towards the working capital as well because launching new products means a lot of SKUs. Those SKUs require working capital to sustain and build in the short term, but in the long run, we have good margins that will help us grow further. Okay. Thank you so much for the detailed answer, and all the best. Thank you. Appreciate that. Thank you. Our next question comes from the line of Krishna Bherwani, an individual investor. Please go ahead. Hi, Fredun. Congratulations on the numbers. Great to see how the business has been playing out over these years. I just wanted to ask about the mobility business, nutraceuticals, and cosmetics. How do you plan to scale those up? Because I can see Fredun Gx and the pet care division pretty clearly. I wanted to get a sense on how you're looking at the other three divisions. Sure. I'll start with the mobility. So Fredun Mobility has the same kind of products as Visco and Tynor, if you know those brands. We started through MMRDA, and then we went on to a couple of states. It's doing phenomenally well. We have, in fact, exceeded our sales expectations for most of our SKUs in mobility. There is less competition for good products, and for us, it is the same distribution channel. The GX line, which sells pharmaceutical products and allopathic formula products, are the same line because most of the chemist shops, most of the pharmacies, most of the distributors who do allopathic formula also do mobility because it goes side by side as a complementary product. Because we are already in that line, because we have already distribution, for us, getting inroads, getting our products added, and getting the sales for our mobility products is far easier than a new company who is planning to set up mobility by itself because they would not have the distribution lines and channels already carved out like we do into mobility because i t has a considerably lower distribution and penetration cost for us as pre-existing in the same channels as for someone else. We use that to our advantage to, in fact, grow. That is why the mobility is growing double digits. We anticipate a 25%-30% growth year- on- year on the numbers, and there will be a sharp increase once we add more geographies in the later half of next year. Plus, we have also launched this last month, we launched Mobilitix, which is our physiotherapist-targeted product division because a lot of the products, which are specialty products in the mobility range, are used by the physiotherapists as well. That is generally a very gray, untapped market right now, but a very potential one and a high-growth one for our country. Considering the population, considering the growth in the treatments required, and also in terms of the age, we are one of the youngest populations in the country. The stickability of certain brands will last for a prolonged period of time, especially in mobility where people would require some of the other products as time goes by in their lives. For nutraceutical products, as I've said before, we are one of the only companies to have double-blinded clinical trials for nutraceutical products as well, which even much bigger companies don't have. We are giving complementary products to the allopathic formulations where the doctors understand the requirements for the same and ensure that such complementary nutraceutical products are part of the lifestyle. For example, someone is having cholesterol or someone is having diabetes. Most probably, once someone has diabetes, they have diabetes for the rest of their lives. They are on some kind of medication in terms of allopathic formulations. We have specially curated products which go complementary along with those lifestyle products. If the nutraceutical becomes chronic, it is well-researched based. The doctors stand by it. We have added a few more geographies last year, and we are adding more. The way we are going, the nutraceutical is going city- by- city and going in those hubs and metros and targeting the consumers there. For cosmetics, cosmetics is divided into two ranges. One is Beautyfred, which is a mass-market cosmetics, and one is dermaceutics under Bird N Beauty. The mass-market cosmetics, again, are distribution. Good quality cosmetics are not available at a reasonable price. We have launched innovative products even in the cosmetic range. For example, our sunscreen, SPF 100, is not there in India. We have launched the first time an SPF 100 in a single-use sachet form. Such small changes, such small innovations make us have instantly clicked in the market. For example, our wet wipes. We are the cheapest wet wipe in the country in terms of the cost to the distributors and the PTS. We are selling about 350,000-400,000 pieces only in the MMRDA and the Maharashtra region almost every month. We have got good inroads, and we are doing quite well in terms of cosmetics as well. Our reach for Beautyfred will increase in the next 24-36 months, but we want to reach the tier two, tier three markets before we go to the tier one markets with our mass-market cosmetics. Cool. I think that clarifies it pretty well. All the best, and I hope to see things only get better and better for you and for the company from you. Thank you. I really appreciate your good wishes. Appreciate that. Thank you. Thank you, sir. Our next question comes from the line of Keshav Toshniwal from Kanak Capital. Please go ahead. Hi, Fredun. Firstly, congratulations to the company and you for producing such an excellent set of numbers. The company is growing quarter- on- quarter, year- on- year. I've got a couple of questions. First is with respect to the Wagger deal we have recently done, right? If you could elaborate a bit about the founders and how you're going to scale this. Yes. Yes. Sure. See, we have to understand why the company has taken over this platform in the first place. I want people to reflect that in India right now, there is no neutral space for pet care. HUFT and Just Dogs and a couple of other companies are selling most of their products and pushing every time a good product sells, they brand the products themselves and push it. There are so many consumers, I mean, so many manufacturers who have good quality products but have no avenue to sell them. We will be India's first neutral space where a good quality product can also come, and it will be completely neutral. There will be no one, even Fredun products will not be pushed before other products on the platform. Another reason for Wagger is right now, there is a vast void in terms of clarity and knowledge in terms of first-time pet parents. They have no idea where to go. The breeders are disorganized. The dog groomers, the dog trainers, the dog walkers, completely disorganized sector, and there is no way to authenticate who is good, who is not. Every trainer you ask right now in the market will say, "I'm the best in the market." There is no way to verify it. Generally, pet parents as India, people say it's a growing pet market. In a growing pet market, there will be more first-time pet parents than repeat pet parents. They would want to definitely have these other services also, but there is no way to go. We want to have a central platform, a lifestyle kind of product for pet parents where right from the manufacturers who have good quality products but no avenue to sell them. Amazon charges 25%-30% markup, 40% markup on products. Sometimes do not even get listing. There are so many good small manufacturers who give excellent products but no avenues to sell them. We want to be a platform where they can onboard. Luckily for us, we are not an e-commerce company, but we have the e-commerce platform and the science tech platform so we can actually verify the product scientifically before they get uploaded on the website so that the pet parents are sure that a company who is in this industry for almost three decades has vetted the product before it is sold. Right now, there are so many products that are sold on other e-commerce platforms. There is no way the platform does not take any guarantee of the products. We would not be taking guarantees of the products, but we would be 100% sure that this product is good for the pet. Only then we would onboard it on our platform. It also has some patents like live tracking and diagnostics, just like how humans wear smartwatches. We would have devices which a pet parent can buy, and a certain live tracking of their pet can happen. That way, pet parents are more secure in terms of their child's health. As a company, I feel that Wagger is a very important acquisition that we have done, and it would only grow the pet space in the country, and it will give a small impetus for the industry ahead, not only for us as a company but for the whole pet care market as such. Right. Right. That was quite a detailed answer. Thanks for that. Secondly, right, the way in which the company is pivoting, right, the role of investing into high-quality teams becomes really paramount. Given the bandwidth the company has got because of the threat and the extra funds you have got, how you're seeing to build a high-quality team over a period of eight to twelve months? Yes. Our team for Wagger is already being built. They are one of the top people in the country in terms of the e-commerce space. They've already onboarded. They are starting their own teams. Hopefully, by mid-January or by first week of February, we should have the teams launched for Wagger and our online platforms. There are teams which we have hired for new product development. Luckily, we are very strong for a company our size in terms of F&D because of the background of my parents. Both my parents are research scientists. We have a 40-people F&D team in the plant, which is very rare for a company our size. We are going to add more people there. Definitely, even right now, the heads of all the brands, each brand works like a separate company itself. It works like a separate unit. Every brand has a separate head. Every brand has an operations team. Every brand has a supply chain and finance team. There will be more, what you say, building a more robust human infrastructure in each of those brands and each of those verticals. It is mandatory. Without good people, you cannot grow a company. One person can't do shit. It is almost mandatory and imperative that hiring is on a continuous basis. There will be filtrations. There will be new people hiring and new blood joining. Hopefully, within the next 24 to 36 months, the world will be able to see the effects of the new team coming in and interact with the team as well. Right. Finally, you are planning to reduce the percentage of. I'm sorry to interrupt you, sir, but you can rejoin the queue for more questions. Yes. That was my final question. Yeah. Thank you. Yes, definitely. That is in the charts and the plan. So it is part of the growth strategy. Thank you. Cheers. Thank you, sir. Our next question comes from the line of Khushi Jain from Share India Security Limited. Please go ahead. Hello. Hi. Congratulations for the set of numbers. Just a couple of questions regarding the pet care division. We have multiple acquisitions and significant SEAs coming around. Are we primarily focusing on pet care as a segment or how it is? Our company is existing for 36 years. Pet care is something which we started five years ago in. We have already those products aligned for the last 15 to 24 years. We have developed products for large animals also. We have developed products for pets also. We want to be a company which is not just a pet company because we have the prowess to manufacture nutraceuticals, and we have the power to manufacture mobility. I think mobility can be a very big division for us in the future. Nutraceuticals will be a very profitable division for us in the future. Dermaceutics will be we are pioneers in dermaceutics in terms of certain products. We are the first ones in the products. We are using our experience for the last three and a half decades. Now, as we have the bandwidth, infrastructurally, financially, operational-wise, we are going to use that to grow each of the verticals sustainably and have a founded growth rather than a hockey stick kind of approach. Yes, pet is our focus. We have one of the best range of products in the country for pet care. Are we only a pet care company? Absolutely not. We have other almost 1,600 products which are doing phenomenally well, even in the allopathic range and even in the GX range. I think that should answer your question. Awesome. Thank you. Thank you so much for the answer. Next thing I wanted to ask regarding any export-related plans for the newest categories which have come up right now. Sorry, can you repeat the question? I couldn't hear you. Am I audible now? Yeah. Yeah. You're audible. Sorry, you cracked me. Yeah. So I'm just asking, the newest business has been going up pretty well right now. Any export strategies for the next one to two years for the newest portfolio? For exporting? Yeah. Yeah. We have launched pet care in Sri Lanka. We are getting our products registered right now in the Philippines. We are also getting our products registered in the GCC area. Definitely export. We are present in 52 countries directly and indirectly. We are going to tap those channels right now. We wanted to create a strong affirmative base for our products in India, and then export markets come very natural to us. We are sure that once we build our base in India, we can immediately catapult into the various markets thereon. Thank you. Perfect. Any guidance for the next one to two years if you can give on the newest side? All I can say for the newest business, the growth will be as we have been seeing. We will have steady, founded growth. Over the last 18 years, there is not a single year that we have degrown, and we like to continue that growth trajectory. We have a larger base, so we have more work to do in order to achieve that. We are sure to achieve our numbers as planned and targeted. The vintage business will grow sustainably for the next seven to nine years, almost on auto cruise control. The newest business is growing month- on- month, actually. That is where we are heading. We have a seven-year plan for pet care. We have a 5 to 6 year plan for nutra right now and a three-year plan for mobility. We are on track to execute those things. Let us see. We take it as it comes. Okay. Perfect. Perfect. Thank you so much for all your answers, and all the very best. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit the question to one question per participant. Should you have a follow-up question, please rejoin the queue. Our next question comes from the line of Ashish Soni from Family Office. Please go ahead. Regarding investment for Wagger, how different it will be from Amazon platform? You mentioned certain things, but can you elaborate more on that in terms of markup fees and all those things? In terms of what? Sorry. Like you said, right, Amazon has markup fees of 25%, 40%. Yeah. Yeah. Yeah. Investment required for how long? As Wagger is an addition to our core business, and it is not our core business, we would have the liberty to ensure that it becomes reasonable for new vendors to join in compared to other e-commerce platforms. It will vary from product to product. It will vary from location to location. It will vary from the kind of distribution channel required for a very specific kind of product because these are multiple SKUs, and each product requires, some requires cold chain, some requires volume, some are value-based. It changes from product to product. It changes from demographics to demographics. I would not be able to pinpoint at what product, at what margins we would be giving at Wagger, but it will definitely be more reasonable than most of the other platforms. Give a footage which other platforms don't. Plus, there would be a verification of those products through our F&D and R&D teams stationed in our in-house rather than just the online platform, which is passive in nature. We will be very active in terms of decision-making and product understanding. Investment required for this platform? I asked that question. The investment, luckily, we made a very spectacular deal, which is one of its kind where we have not paid a single penny for the acquisition. The acquisition we have made in a way that the existing stakeholders take a small stake in the new company formed, and we take a majority stake of almost 80% and hold that company because I had reasoned with the founders. I reasoned with the investors of those founders also that the money that we are going to spend for the next three years, four years should be spent for the website and not for paying the acquisition cost. Our acquisition cost is zero. We are investing about INR 4 crore-INR 5 crore in the next 18 to 24 months for getting basic things aligned. We intend to invest another INR 5 crore-INR 7 crore later on. We have to understand that this is not a typical e-commerce platform. We already have our channel set with our pet care in ground, so we need to just add on this platform in order to promote the sale. It is not a brand new channel that we need to invent for marketing this e-commerce platform. It will be marketed via our existing channels, through our channel partners, through our tie-ups with our distributors, through our tie-ups with our retailers. We have almost 90% coverage for our retailers in Mumbai, 95% coverage in Mumbai itself, and in MMRDA. A lot of good coverage in the north, very good coverage in south, and again, heading towards east. We are going to create a layer of this website on our existing channels. We are not going to burn money like the other e-commerce platforms. We don't need a crazy amount of burn as compared to a standalone e-commerce platform. How much can we scale in terms of revenue, total revenue from this particular vendor in three to four years? We consider next five to seven years, the Wagger revenue itself can be a few million dollars a month. Right. Yeah. Yeah. Maybe more than that. Thank you, sir. Our next question comes from the line of Ankit from the Money Market. Please go ahead. Okay. Congratulations on a spectacular set of numbers, but I'm not surprised because I'm used to seeing these good numbers from your side. One is that. Second, you recently had a disclosure that now you have entered into Jain products for pets. I know it's too early, but how is that shaping up? Also, you had mentioned in the last call of a INR 90 crore tax guideline, a guidance for FY2029. Is that intact, or you can expect much more than that? I'll answer your second question first. I always underpromise. I believe in underpromising and over-delivering. It's better to be conservative than be over-enthusiastic. We take certain worst-case scenarios and try to give certain guidances. We would definitely be on track to achieve those numbers as for now. Whether we would be doing better than that, if we do, that's good for all of us. Let's see how it goes. We do plan about five to seven years in advance. We take one quarter at a time and take baby steps. I appreciate your good words. Coming to the Snacky Jain part of it, we have got a phenomenal response, unbelievable response. In fact, we did not even anticipate the kind of orders that we have got for it. We had to go back on our drawing board and revisit our manufacturing and procurement and everything with the kind of growth that, I mean, with the kind of order book that we have for Snacky Jain, hopefully by November, and it should be in stores across certain geographies and within the next six months, possibly in most parts of the country. Yeah, it is a product. It is not a product where we are telling people to give Jain food to the dogs. We are not. We are nowhere propagating Jain food to the dogs. We are propagating that there is a community which loves animals. There is a community which cares for the animals, and they love feeding dogs. They would end up giving some product like a Parle-G, or they would give a product like another biscuit or something which is not so nutritious for an animal because of the lack of avenues. There is a nutritive, functional food created for the community which understands the sensibility of the community as well and also the requirements and the nutritional requirements for an animal and combine both and launch this product. It would not only help the community, it would also help the animal. We are launching more variants of the Jain product because we have got some crazy demand and crazy requirements. We are going to have a whole range of Jain-related products coming up in the next six months for Snacky Jain, which would be targeted in terms of their gut health, in terms of their mobility health, in terms of their overall nutritional requirements, and also their health requirements. Some will be certain products for Jain, which will be for geriatric dogs. There will be certain Jains for young dogs. We are coming out of lines. We are practically getting a few calls a day requesting our entire stock for themselves. We have understood. We knew that this market exists. That is why we launched it. It is a good cause for a good community. Perfect. Perfect. Thank you, Fredun. I'm always happy to hear you all. I think since the time you all have started this call, it is only going to help investors like us. Congratulations for great numbers and all the best for the many, many more years to come. Thank you. Thank you so much. I really appreciate that. Thank you. Ladies and gentlemen, due to the time constraint, that was the last question for today. I would like to hand the conference over to Ms. Manani from Kirin Advisors for the closing comments. Thank you, and over to you, ma'am. Thank you, everyone, for joining the conference call of Fredun Pharmaceuticals Limited. If you have any queries, you can write us at research@kirinadvisors.com. Once again, thank you for joining the conference call. Thank you, Team. Fredun. Thank you. Okay.