Fredun Pharma bonus issue: Shares of Fredun Pharmaceuticals Limited rose around 3% on Tuesday, May 26, after the company announced a 2:1 bonus issue alongside strong financial results for the quarter and financial year ended March 2026.
The company’s board, in its meeting held on May 25, 2026, approved the audited Q4 and FY26 financial results and recommended the issuance of bonus shares in the ratio of 2:1. Under the proposal, shareholders and warrant holders will receive two fully paid-up equity shares of face value ₹10 each for every one existing fully paid-up equity share of ₹10 each held on the record date, subject to shareholder approval.
“The Board of Directors, at its meeting held on May 25, 2026, wherein the audited financial results for Q4 and FY26 were approved, has recommended the issuance of bonus shares in the ratio of 2:1, i.e. 2 fully paid-up equity shares of ₹10 each for every 1 existing equity share of ₹10 each, to eligible shareholders and warrant holders as on the record date, subject to shareholder approval,” the company said in its press release.
The company said the bonus issue was aimed at rewarding shareholders for their continued confidence and long-term commitment to its growth strategy, while also signalling management’s confidence in the company’s structural earnings growth and long-term scalability.
Fredun Pharmaceuticals added that it remains well-positioned to sustain its growth trajectory, backed by multiple business verticals including branded generic exports across 52 countries, domestic Fredun Gx formulations, nutraceuticals, cosmeceuticals under Bird N Beauty, and its integrated pet healthcare platform comprising Freossi, Wagr and One Pet Stop. The company also highlighted that the inauguration of its fifth GMP-certified manufacturing facility in April 2026 would provide additional capacity to support future expansion across segments.
Commenting on the development, Fredun Medhora, Managing Director, said, “The recommendation of a 2:1 bonus issue reflects the strong momentum we have built and our confidence in sustaining this growth trajectory. With robust performance across revenue and profitability, and continued progress in diversifying into higher-value segments such as nutraceuticals, cosmeceuticals and pet healthcare, we are strengthening the quality and scalability of our business. This bonus is a way of sharing our progress with shareholders while reinforcing our commitment to consistent, long-term value creation.”
Dividend declared; Q4 earnings remain strong
Apart from the bonus issue, the company also declared a dividend of ₹0.70 per share for shareholders.
For the March 2026 quarter, Fredun Pharmaceuticals reported a 56% year-on-year rise in net profit to ₹11 crore, supported by healthy demand across segments. Revenue for the quarter increased 27% YoY to ₹213 crore, while EBITDA jumped 67% to ₹29 crore.
The company exited the quarter on a strong operational footing, with profitability growing at a faster pace than revenue, indicating improving business quality and operating leverage.
For the full financial year FY26, net profit surged 60% YoY to ₹33 crore, while income rose 40% to ₹639 crore. EBITDA climbed 72% to nearly ₹95 crore, with EBITDA margin expanding to 14.8%.
The company said margins improved across the board due to operating leverage benefits and disciplined cost management. It also highlighted improved financial ratios and positive cash flow generation, which further strengthened its overall financial health.
Fredun Medhora said the company’s growth momentum was driven by balanced performance across segments. According to him, the core generics business continued to perform strongly, while nutraceuticals, cosmeceuticals and pet healthcare businesses gained increasing traction.
“The balanced mix is helping the company scale more sustainably and reduce dependence on any single segment,” he said.
Fredun Pharmaceuticals operates across a wide healthcare portfolio, including antihypertensive, antidiabetic, antiretroviral drugs (ARVs), narcotics, dietary and herbal supplements, nutraceuticals, cosmeceuticals and animal healthcare products.
Fredun Pharma Stock Performance
The stock rose as much as 2.7% to its day’s high of ₹2,450 per share on BSE. It has also been positive in the near term, adding 13.5% in 1 month, 46% in 3 months, and 28% in 6 months. However, it has given multibagger returns in the last 1 year, rising 225%. I nthe past 5 years as well, it has surged 471%.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
