Fredun Pharma Q2 FY27: PAT nearly doubles YoY (+97%), outpacing 86% revenue growth

Fredun Pharmaceuticals' consolidated numbers are the primary read here: PAT of ₹18.57 Cr grew 96.9% YoY (vs ₹9.43 Cr) and 41.4% QoQ (vs ₹13.13 Cr), outrunning revenue growth of 86.4% YoY and 17.5% QoQ to ₹267.64 Cr. Because profit grew faster than the top line, this is a genuine margin-led strong quarter rather than a volume story — net profit margin expanded to 6.94% from 6.49% a year ago and 5.75% last quarter, and neither period carries an exceptional item (both show ₹0.00 on that line), so the growth is clean, not one-off-driven. The margin bridge sits mainly below the operating line: EBIT (PBT + finance cost) margin works out to roughly 14.4% of revenue this quarter, which already sits at or above the 12-13% EBIT margin management told its Q1 FY27 concall (17 Aug 2026) it expected to reach only "within 8-12 quarters" — i.e., the company looks ahead of its own margin-expansion timeline just one quarter in. Finance costs (₹8.78 Cr) and depreciation (₹3.93 Cr) both rose on the back of a larger asset base (gross block up from ₹11,760 Cr-equivalent to ₹15,184 Lakh-equivalent between March and September 2026), consistent with the ₹35-45 Cr/year capex plan flagged at the same concall. No street estimates or brokerage previews for this specific quarter turned up in search — Fredun is a sub-₹2,000 Cr micro-cap with no visible formal analyst coverage, so vsStreet is unknown rather than inferred. Against management's own guidance it reads as a beat-in-progress: H1 FY27 consolidated revenue of ~₹495.9 Cr is already 62% of the ~₹800 Cr FY27 revenue target management set out at the Q1 concall (versus a prior ₹570-580 Cr plan), putting the company well on pace barring an unusual H2 slowdown. Standalone PAT (₹18.83 Cr) is marginally ahead of consolidated (₹18.57 Cr) — the ₹0.26 Cr gap is drag from the three newly consolidated entities tied to the October 2026 pet-care and wellness expansion (two deals announced 8 Oct 2026), the first quarter these show up in group numbers. One divergence worth flagging: consolidated basic EPS of ₹10.99 is well below the year-ago bonus-adjusted ₹19.98 even though PAT nearly doubled, because paid-up equity capital rose from ₹1,416.51 Lakh to ₹1,689.97 Lakh on 160,533 warrants converted into shares during H1 FY27 (on top of the 2:1 bonus issue). The board also approved applying to list on the NSE at this meeting, alongside the results.