Ladies and gentlemen, good day and welcome to Q4 FY 2026 results conference call of Fredun Pharmaceuticals Limited, hosted by Kirin Advisors Private Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant 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 the 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 call over to Ms. Sakhi Panjiyara from Kirin Advisors. Thank you, and over to you, ma'am.
Good morning, everyone. Thank you for joining the Q4 FY 2026 earnings conference call of Fredun Pharmaceuticals Limited. We have today with us Mr. Fredun Medhora , Managing Director of the company. Before handing over to him to address your questions, let me briefly walk you through the company's performance for the quarter and year-ended FY 2026. During the Q4 FY 2026, total income stood at INR 213 crores, registering a strong growth of 27.27% year-on-year compared to INR 167.41 crores in Q4 FY 2025. EBITDA came in at INR 29.13 crores, reflecting a robust growth of 67.05% year-on-year, with the margin improved to 13.67%, expanding by 326 basis points. Net profit for the quarter stood at INR 11.07 crores, with a growth of 56.47% year-on-year.
Net profit margin improved to 5.19%, expanded by 97 basis points. For FY 2026, the total income reaches INR 639.12 crores, marking a 40.08% year-on-year growth. EBITDA stood at INR 94.79 crores, up by 72.05% year-on-year. EBITDA margin improving to 14.83%, an expansion of 276 basis points. Net profit increased to INR 33.21 crores, delivering a strong 59.59% growth year-on-year. Overall, the company has demonstrated a strong revenue growth along with a meaningful margin expansion and improved profitability during Q4 and FY 2026. With that brief overview, I would now like to hand over to Mr. Fredun Medhora . We can now open the floor for Q&A. Thank you.
Thank you very much. We will now begin 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 handsets while asking a question. Ladies and gentlemen, please note, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to one per participant. Should you have a follow-up question, please rejoin the queue. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Keshav Toshniwal from Kanakala Capital. Please go ahead.
Congratulations, Fredun, for excellent set of numbers. The company has been growing at a crazy pace now. My question is with regard to the recent notification, which you have given with regard to Dolsen and hormonal products. It seems to be very exciting. How do you see these products and what is your plan, and how do you want these products to pan out in our company?
Sure. Excellent. We are launching two sets. One is an hormonal line and the other is an NPH line. In the hormonal line, the market is quite fragmented. There are these hormones which are used for medicinal purposes, and there are some who abuse it also. We are going through the doctor channel. We want good hormones in the market. There's a huge demand as the population is gaining awareness. The population requires certain targeted therapies such as testosterone replacement therapies, and so on and so forth. Even in terms of pregnancy, even in terms of estrogen, even in terms for men and women both. Hormones are a sector which is not very focused on, and it is very fragmented in terms of its usage. Because there are not many good hormone products available, many even abuse it. We have gone through our doctor line.
We have created a list of products. Some of the products that we have created in the hormone line, we will be one of the first or the second in the country to have those products. We have created a ground-level team. Currently, we are focusing in MMRDA region, as we generally do as a company. Then we are focusing on certain metros. We also will be the first ones to have medicated hormone products sold online through our website and through our doctor channel, which is available, which we'll be the first ones in the country to do so. There we are going to add not only these products, but also specialized therapeutical products, even for fitness industries, such as specialized pre-workouts, specialized protein powders, because we are already doing an entire protein range in our nutrition range, which is doing phenomenally well under Fredun Energy.
We are going to enhance those and create targeted pre-workouts, create targeted therapies, which are going to not only help the fitness industry, but also will do great for doctors as they will have alternative long-term treatments along with their hormonal therapies. We are going to have a range, not just of hormones, but of other protein supplements also, which are targeted in those areas for those people who are on hormone therapy. It will be a complete end-to-end basket for people who are on that prescription. When it comes to anti-aging, as you know, the number of clinics of anti-aging are growing rapidly. CDSCO has lately finally announced that you cannot accept for doctors, because first, anyone was given any therapy online. You would see in newspapers that weddings have these IV bars given for the IV guest and everything, and anyone was administering anything.
The demand is unbelievably huge. It was not very organized. Finally, the government has put a very good law. CDSCO has put a good law that only certified doctors can prescribe it. It works to our advantage. We are one of the first manufacturers for NAD+. We are one of the first ones to have exclusive import rights for the API also, which is right now the talk of the town. With end-to-end supply chain, it has a relatively decent margins also.
We can use our dermaceutical products, our specialized anti-aging products, and there are certain products which we are the first ones to have those licenses, create a basket and go to the dermats. Go to the doctors, go to the people who are prescribing these CMs and injections, and create a range of it. It is a very high margin, fragmented market, not strong competition, unorganized market, and frankly speaking, a very brown field for us to build our brand very quickly and very fast.
Thank you very much. Next question is from the line of Vinod Shah from VS Ventures . Please go ahead.
Hello. Good morning, sir. Am I audible?
Yes. You're audible. Thank you. Good afternoon.
Yes, sir. I just have one quick question. Sir, can you shed some light on growth strategy for your mobility division? How are you planning to scale this business going forward?
Yes. Mobility has been a very positive division for us. We have seen phenomenal growth. Last year, we did around almost INR 30 crores of mobility products. Mobility has four brands in it, BraceOn, DigiOn, NebOn, and now we are launching this, by July, Mobiletics. These products go to the chemist shops, and most of these knee braces, leg braces, your orthopedic products, your digital-based products like thermometers, your BP machines, your glucometers, those are all products which are sold in the chemist line. We are already doing very big distribution and distributing our products of Fredun Gx and our other third-party products also, and our other branded products in certain geographies in India. We use the same distribution channel. We have used the same channel to add on our mobility products. Companies like Vissco and Tynor don't have a pharma along to sell it. We have.
That gives us an upper hand in the distribution, that gives us an upper hand in even logistics, which is a big component when it comes to mobility products like wheelchairs and walkers and so on and so forth. We have used that to our advantage. We do not foresee any problem in touching INR 100 crores within two and a half calendar years from now. INR 100 crores run rate. We are looking at easily within the next five to seven years, INR 250 crores-INR 300 crores enterprise coming out of this. It is profitable, it is doing well. It is not burning any of our other resources. We don't burn money to market it, and we are not an online brand. We are completely offline, pure distribution. In Maharashtra, every single state has our product.
We have also gone inroads into Goa. We are getting inroads into Chhattisgarh. We are getting inroads into Karnataka next month. We are available in many states, but in the states which I've mentioned, we have very strong distribution. Within the next two and a half years, we should have the same kind of distribution we have in Maharashtra in at least 17-18 states. That division, touch wood, has done phenomenally well for us. I feel we can create amazing brands out of it. Our Mobiletics brand is a specialized brand which is targeting only physiotherapists and products which physiotherapists are using. We have created unique models in order to tap that market because they are a marginalized community when it comes to doctor community. They are actually the first-hand influencers for most of the products.
We have created a list of products, we have got phenomenal success. In fact, our pre-booking is completely booked with the physiotherapists as we are planning to launch in July. Hopefully, that alone should go into INR 30 crores-40 crores in the next two years, just the Mobiletics part of Fredun Mobility. We have amazing response and frankly, it is a no headache business for us and growing at almost a 55%-60% CAGR.
Thank you. Next question is from the line of Pritesh Hora, an individual investor. Please go ahead.
Thank you for the opportunity, sir. Sir, I wanted to ask you regarding your pet care business in terms of aspiration, like in terms of product and the range of product that you are going to offer and numbers, what do you see like in next three years, five years, how big can the business be? I don't want to know the numbers per se. I just want to know about the products and the services you plan to offer.
Yes. I've always been saying, sir, that we are the only company to do what we do in the sense that we are the only company manufacturing allopathic formulations, nutraceuticals, herbals, grooming, functional foods, and also do diagnostics all under the same roof. We have a unique basket. Our long-term goal is very crystal clear, substantive, and simple. That by 2032, 2033, no pet in India can be born or die without using a Freossi product or service. Our targeted pathway is that we create products which are there in all parts of a pet's life, from birth to youth to their prime to their geriatric parts. The biscuits that we are launching, we have launched one of the most novel varieties, including Snacky Jain which have done phenomenally well. In addition to that, we have 42 variants of functional food biscuits that we are launching.
As we speak, we are launching for all kinds of breeds and all kinds of products. That way, we'll go inroads into the industry even further. Even in grooming, in certain markets, we have displaced the market leaders and created because of our products, because we come from a manufacturing background, we come from a human manufacturing background. We already manufacture the best dermaceuticals and cosmetic products in India, where even the big brands use from us. With the same tech background, with the same knowledge to manufacture pet grooming products, we have come out with an amazing range of products, and they have done phenomenally well. When it comes to certain products, as I said last time also, we'll be heading in stage four trials. We have already had it in stage four trials.
Within the next 9 - 12 months, we'll come out with some formulations which will be the first ones in India for pet, and it will be a real game changer for us in the pet space also. Our online platform, Wagr, is also going to be one of the most awaited things for us right now. We have taken our time. We have taken three, four months longer than necessary, the final product has come out phenomenally well. We are in the launch phase right now, hopefully by first week of July or mid-June. Mid-June, we are having a soft launch. First week of July, we'll be launching. It is one of the most inclusive platforms for pets ever created. It is not just an e-commerce platform.
When people will see that, when people see our products, when doctors understand, because when we start our marketing, we do not just go with a product to the doctor. We start our education much before that. We start our education programs. We call the top doctors across the world and create symposiums where the reason for why we have created a product is ascertained to the doctors. For example, our diagnostics. We got such a phenomenal response, at the same time, many doctors didn't even know what are the real advantages of good diagnostics. After understanding, we also launched India's first bulletin on radiology and pet imaging. Once that bulletin went to all the doctors, they started calling us, and they started appreciating what we do. Even for exotics, what we are doing is really phenomenal.
An example, last week we did a CT scan for a cobra, which is very rare to have that bandwidth, to have that infrastructure, and have the doctor support to diagnose a cobra-related CT scan. We are kind of pioneers in what we are doing. Whenever we have launched a product in the industry, we have ensured that the bar of the industry has been raised irrespective of our sales, and that is our long-term goal anyway. We are quite happy and quite content in achieving that.
Thank you. Next question is from the line of Ankit from Money Marche. Please go ahead.
Hi, Fredun. Congratulations on the great set of numbers and keeping up with that consistency as always. My question is, we all know about the growth capabilities and how you all have performed quarter-on-quarter. I think because of what is happening in the Middle East and the whole geopolitical issue, do you see that the raw material cost as a percentage of your sales has started inching up? Are you able to pass on to the customers? One is that, and second is, any slowdown you feel which has come in the last two months because of this whole tension? This is the question I have, Fredun, for you.
Yeah. Excellent. People have always said that geopolitical issues cause problems, and I always say, "No matter how many bombs fall, no matter how many things, people have to take their heart pills." Yes, of course, the prices have increased. Therein, because we always used to keep three to four months of stock, that initial jolt of that price increase never bothered us. In fact, we could cater to our clients at the same prices because we had considerable stock in hand. Something which was considered as a bane on our company could became our boon. That is why our turnover also increased. In fact, our sales increased because of it. Yes, of course, the price has not increased for Fredun Pharmaceuticals. The price has increased for the world.
Luckily, we had buffer stock, we already, as I've said before, we have orders in hand for six to seven months in hand, always. This time also, we have orders upwards of INR 320 crores-330 crores in hand. As a result, we also give orders ahead to our suppliers in hand, and our orders are kind of booked, which is a very big plus point when it comes to such geopolitical changes. Yes, it does not affect us. Few percentage, 1% or 2%, the buyer absorbs, sometimes certain products we have to absorb, but it has absolutely no difference to our bottom line. In fact, it increases our business. It creates a robust line of communication where the buyers are happy, the distributors are happy. Many of our products are in our own brand, so there are decent margins.
If we at all in the future, if we have to absorb anything, currently, we do not. It has not affected us. Yes, the prices have increased. Yes, certain products, we have to increase our prices. Everyone understands it. The oil prices have increased globally. The foil prices have increased globally. The PVC price, plastic prices have increased. Anything to do with petroleum has increased globally. It's a phenomenon that has bothered the whole world. It is nothing specific to us. In fact, we have taken advantage of it, and we have used that advantage to propel faster. That is why we have seen this kind of growth. This year also, I think we are on track to overachieve our targets. Hopefully, what we have targeted in 2029 and 2030, we will achieve it faster than anticipated.
Thank you. Next question is from the line of Nikhil Agarwal from VentureX Fund. Please go ahead.
Hello.
Yes, sir. You're audible.
Yeah. Can you please give the revenue break-up of how much we get from our website business and from the newer business? Also in that
I'm sorry, Nikhil. I'm sorry. Can you please try your handset now. Your voice is muffled a little.
I can't hear you.
Yeah. Am I audible now?
Yeah, that's better.
Yeah. Can you please give the revenue breakup for your vintage and new business for FY 2026, and also in that, which business has contributed more % in vintage and new age?
Yes. Our vintage business, as I've always said, is growing at around 15%-20% year-on-year, and that will continue to grow. Our exports have grown with about INR 110 crores-INR 120 crores. Our tolling is somewhere around INR 24 crores. Our indirect exports, our institution sales, that add up to about another INR 120 crores-INR 130 crores. Our domestic third-party branding also grows to somewhere around INR 45 crores-INR 50 crores , Fredun DC , another INR 25 crores-INR 30 crores.
That's a growing rapidly. Our new age business, such as the pet care business, does phenomenally well. We have done around INR 42 crores-INR 43 crores of sale in the pet care business. In the mobility, we have done around INR 29 crores-INR 30 crores. We've done nutraceuticals of around INR 26 crores. We've done cosmetics, mass market cosmetics, around INR 20 crores-INR 22 crores. We've done dermaceuticals around INR 12 crores.
We are doing quite well. The new age businesses are growing at around 40%-50% CAGR because they're coming from a smaller base. The vintage business is also growing because of registrations. We have about 1,000 registrations still in the pipeline. More than 1,000 registrations. That is also growing at around 10%-15%, but that's on a cruise control growth. Our focus is on the new age business, where the gross margins are also relatively higher, at around 45%-55%. Some products like dermaceuticals are around 80%-90%. Some products have even higher, almost somewhere around 50% gross margin. We definitely will keep on growing the new age business also.
Within the next few years, the percentage of the business will come to around 50% each, and within the next two, three years post that, it will be around 70% to 30%. As I've always said, we are transitioning from a contract manufacturer, normal pharmaceutical, generic or branded generic company like Cipla and Sun, to a more consumer-related products, consumer DTC products, and also growing our pharma line simultaneously. We are not intrinsically a pharma company anymore. We are a mass market consumer product company as we speak, and we are growing, and hopefully we'll have the transition done within the next seven to eight years with retaining our pharma roots and growing our pharma roots also at the same time.
Thank you, sir. Next question is from the line of Nishita Shanklesha from Sapphire Capital. Please go ahead.
Yes. Thank you for taking my question. Just wanted to understand, you mentioned that we'll overachieve our target in FY 2027. If you could quantify that target, that would be great. What is the growth that we can see?
Yes. I always underpromise. If you have seen my BSE guidances for the last 10 years, we have always underpromised and overdelivered. We are not a company which has unreal, unnatural targets. We can consider an overall growth of around 25%-30% on our top line from the last year, which will automatically add up an increase from the expectation of what we had given guidances two years ago. We can do better than that, but right now, between 25%-30% growth on our top line of last year is what we are intending to achieve. I think we can easily do that. We are on track to do it, and our numbers as we speak and the run rates as we speak are in line to achieve that.
Thank you. Next question is from the line of Aanchal Maheshwari from Naredi Investments. Please go ahead. Mr. Maheshwari, can you hear me? Your line is unmuted. You may please go ahead.
Am I audible?
Yeah, ma'am, you're audible.
Yeah. I just wanted to understand, sir, where are we. How are we targeting our customers for the pet business? Are we listed on online marketplaces, and how are we marketing the products?
Currently, most of our products are prescribed products. We had a very novel range of marketing. Initially, when we started creating brand awareness, we did not go online, or we did not go to the doctors like most of the companies. What we did was very different. We started educational programs with our first line of influencers. In pet care, we have to understand the first line of influencers are not necessarily doctors or online platforms. They are the feeders, they are the groomers, they are the dog walkers, and they are the dog trainers. We went to tier one, tier two, tier three, and tier four cities across India. We started training, we started teaching, we started making them understand the benefits of certain products, not necessarily our own products, but certain molecules.
Sure.
Why certain things are to be done, certain techniques. That way we created a bond and we created a very robust relationship with the real first line of influencers. When we got our products in, they were very easily accepted. You go meet your doctor when your pet is sick, but you meet the breeder for the first time when you are a pet parent or you get a pet. You go to your dog walker practically every day. You go to your dog trainer twice a week. You go to a dog groomer twice a month. Those guys are better influencers in terms of day-to-day products than your doctors themselves. When we started doing those education programs, the doctors started realizing that, "Hey, this is not a normal company who has just started pet care. They are very strong in their science.
They're very good with their team." I can proudly say we are one of the best teams for pet care in the country, from India's top nutritionist to India's top cat expert, to one of the best research scientists, to India's first and second vet radiologist, all are on our team. Because of that approach, we could then go to the doctors and they started prescribing. We are not an inorganic growth pet care company where we are spending money to sell our products. Here, our products are taught, are scientifically grown, and that is why we have actually got better success than many online companies also, and many online platforms. Most of my products are prescribed, there is no point of selling it on any platform. My functional foods, yes, but we have our own in-house website where we can sell and people know about us.
Through our distribution channels, it sells very well. We are quite happy and content with our roadmap for pet care. We want to continue that, in the next few decades, I mean, next few years, we will pursue this path to get further inroads into the hoop of the pet industry, rather than be superfluous and sell online only because we are not a pet food company. We are a pet care company.
Thank you. Next question is from the line of Keshav Toshniwal from Kanakala Capital. Please go ahead.
Yeah, that's my last question. I only wanted to ask you regarding your awareness with regard to the finance cost, right? Just you're aware of the cost of finance you're paying, I guess this is the topmost debt levels of our company.
Yes. See, debt as an absolute number is not relevant. Tomorrow, when our turnover is INR 1,000 crores, INR 2,000 crores, INR 3,000 crores, the absolute number might increase. The ratios are definitely improving. For our manufacturing company, for a company which is launching five new-
Yeah, one moment. Just pardon me. I just want to address with regarding to the percentage of cost, right? As our rating has increased, our credit rating, our balance sheet has improved, the percentage of cost should come down drastically.
Yes. That is it. Exactly.
That is the only concerning part which I'm saying. You should be aware that is the only point I'm saying.
Yes. We are very much aware. Who wants to pay more interest?
Yeah, of course.
Nobody works hard to pay interest. People want to make money. Touch wood. We are making money. We have been able to service our debt comfortably. At the same time, we are aware absolute number definitely will increase. We are also looking at the ratios. That is also going to improve, and right now our focus is on robust growth. Yes, there are certain rates which are slightly higher. Within the next three to four years, you will see a pretty different picture when it comes to this in terms of your percentage of the spends. Absolute numbers might increase, decrease. That changes from quarter to quarter.
Definitely we are very well aware of the kind of interest that we are paying, and we are very attuned to the fact that we are going to improve this even further as we are doing for the last few years.
Thank you. Next question is from the line of Nishita Shanklesha from Sapphire Capital. Please go ahead.
Yes. Thank you for the follow-up question. Our margins have improved quite a lot. I just wanted to understand what is the growth driver behind this margin improvement and what are the sustainable margins going forward?
I've said that the new age businesses have a higher intrinsic margin. The new age businesses are growing, but at the same time, the new age businesses are also adding more demographics. If you're running in Maharashtra, we have to spend in Andhra Pradesh to start launching it. We are a brick-and-mortar company, we are not into inorganic growth, therefore we grow at our pace. We earn money and we spend that money. Our margins have improved because since 2016, I have been saying post INR 60 crores quarter revenue, the economies of scale in the vintage business will start hitting in. That is exactly what happened in 2021, 2022. That is when our profitability, which was around less than 1%, started increasing to 2%, 3%, 4%. Right now, we are at around 6.5%. That kind of growth will continue.
The new age businesses have a higher EBITDA, they have a higher gross margin, they will balance out. We are looking at a continuous growth, as we have seen for the next eight to nine quarters. There will be a sudden spike in the profit. Why? Because the demographics. Reach of the new age products will be kind of satiated. There would be no further demographics to use after about seven to eight quarters from now. There will be a sudden spike in profitability, even further than what it is growing now, and then it will kind of ease out and plateau, as profit cannot grow infinitely. Within the next few years, you're easily looking at a 10%-12% PAT kind of company on a 2x, 3x kind of top line within the next few years. Again, top line and bottom line are very important.
As a company, we are focused on sustainable growth. Last 19 years, our growth is at 32% CAGR. There's not a single year of degrowth in the last 19 years. We tend to continue that. We tend to have a sustainable growth in the future. Pharma definitely will have its cycles. We have seen multiple cycles, and we have grown in spite of those cycles. We are quite confident in what we are claiming.
Thank you, sir. Next question is from the line of Ashish Soni, an individual investor. Please go ahead.
Any thoughts on any new product launches? Can you just comment on Wagr.in, how it's doing according to your expectation, and what's your future plan?
New products, as I told you this year, we are going to focus on our hormone and anti-aging, and we are going to increase our demographics for our existing line of ranges, and that is what our target is now. Of course, new molecules will keep on adding within those ranges as part of our long-term plan, and those numbers are quite huge. That will keep on happening autonomously. When it comes to Wagr.in. It was Wagr.ai, now it is Wagr.in because we want to make it a more inclusive platform. That platform has turned out really well. It is going to launch in the end of this month and the beginning of July. It has taken longer than usual, as I've said earlier. It is an amazing platform. It is something which others have not seen till now. It is not a normal e-commerce platform.
We are going to use our connects in the pet industry that we have, which other online platforms don't have. We have a ground-level presence. We have a field force presence. We have a manufacturing presence. We have a marketing presence. Having an e-commerce on top of that is a phenomenal advantage for the e-commerce and for our offline distribution as well. We are going to incorporate all our abilities and all our USPs together. The product has turned out really nice. The team is phenomenal for handling it. It is, I would say, one of the best teams to handle e-commerce platforms like that. It's just not an e-commerce platform. It'd be wrong to just call it an e-commerce platform. It's a completely holistic pet care portal for all the needs for a pet parent. It will definitely keep on upgrading itself.
It is using AI. It is using the latest AI. It is using the latest analytics. It is using the latest tools which are required. It's come out good. Hopefully, you will be able to see it in the next 35, 40 days, active and live. You can still Google it. You will find the layouts, it will be live and active within the next 15- 20 days.
Thank you. Next question is from the line of Darshil Chandra, an individual investor. Please go ahead.
Hello, am I audible? Hello.
Sir, you are audible.
Yeah. Congrats for the excellent set of numbers, Fredun.
Hello.
Given the growth that-
I'm sorry, Darshil. Can you try using your handset mode and just increase your volume, please?
Yeah. Just hold on. Hello, am I audible properly?
Yes.
Yes. Now we can.
Yeah, congrats for the excellent set of numbers, Fredun. As you have given exactly the same guidance of 25%-30% for this year and next year also. How much margin growth do you see from here on 25%-30% growth? How much the EBITDA margin can go up?
The same growth that we have seen last year, 30%-40% on what we have. I told you, the margin growths will keep on increasing for the next eight quarters in the same lines as what is happening in the last four years. There will be a certain spike in the profitability, even further than that, because the demographic reach will be satiated by the new products within the next two and a half to three years. Of course, there will be further growth, but profit, of course, cannot grow infinitely. In the next few years, because we can only target for the next few years, after a few years, we are looking at around a 10%-12% kind of PAT coming up for the company.
Thank you, sir. Ladies and gentlemen, please avoid repeating questions that have already been addressed. Let us take the next question from the line of Nikhil Agarwal from VentureX Fund. Please go ahead.
My next question is, how is our manufacturing capacity utilization as of now? What products do we manufacture in-house and what products do we outsource to the 37 different locations you mentioned in the previous call?
Yes. Now we have around 43 locations. For example, wheelchairs, knee brace, leg brace, auto brace, electronic wheelchairs that we have come up with, braces, that we cannot manufacture in our Pharma plant. There are certain products like liquid injections, PSS, dry powder injections, beta-lactam kind of products we cannot manufacture in-house. Definitely we have planned, we have added more locations in considering our future growth as well. Registration takes time, product validations, product standardization, it takes time. We have not gone out searching for new places where we ourselves outsource, just like how Cipla does, just as how Micro does, just as how Pfizer or Abbott or Wyeth does. We have gone out preemptively. We have planned out for the next seven to eight years our requirements, and then we have selected units.
We have taken our loan licensing and our contracts, and we have started our manufacturing. Right now, I would say about 80% of our products, or more than 80%, gets manufactured in-house. In-house capacities are augmented. We are expanding. Even as we speak, we are adding another 12- 13 packing lines by end of September. We are also going to construct a new wing within the plant. Hopefully, we will disclose it again when we do it on our BSE guidances and everything. That will propel us. As I have been saying, we are one of the largest manufacturing plants even right now. Within the next two and a half years, we should be in the top three, top four manufacturing plants for capacities at a certain location. We are a cluster of four plants at one location.
We are also setting up facilities for our functional foods and also planning to set up facilities for manufacturing a lot of wet food products. A lot of exciting stuff is coming up. In terms of manufacturing capabilities, we have one of the highest COPPs for a single plant in the country. We are doing well. We have used time as our greatest ingredient. I always say, if you can spend INR 400 crores or INR 500 crores and replace our infrastructure, it will take you 15, 20 years to come to our validation and licensing levels. That is our asset. We are utilizing it. We have created and built it over the last three decades. Now is the time to optimize it and use it to our advantage.
Thank you. Next question is from the line of Devang Shah from Ant Financial. Please go ahead.
Hi. Sorry, am I audible?
You're slightly muffled.
Okay. Sir, now the voice would be okay.
Yes.
Only one question is there from my side. First of all, congratulations for the good set of the growth and the numbers. Sir, one question that is really concerning me, that I'm an investor in the company from last two and a half, three years. Only one thing is working capital requirement. Like free cash flow is not joining with the numbers necessarily. Can you throw some light on that? Is there any plan to utilize the cash or the working capital effectively?
Yes. If you're invested for the last two and a half years and you're tracking the company, I'm sure before that, you would have noticed that we are constantly improving in terms of our inventory levels. Four years ago, five years ago, I used to always say I require this inventory level because I'm launching multiple brands at the same time and we have 2,100 SKUs across 27 therapeutic ranges. We need that inventory.
At that time, it was very difficult for many people to understand why a company requires INR 200 crores of inventory for a INR 230 crores top line. When it was a INR 350 crores top line, we had a INR 220 crores inventory. When we have INR 450 crores top line, we had a INR 220 crores. Now at around INR 700 crores, we still have only INR 270 crores, and our cash flows have constantly improved.
In fact, our cash flows, which were strained about two years ago because it was a planned decision. It was not unplanned. It was not situation. It was planned. Now the cash flows have improved. We have positive cash flows even from our operations as we speak. Working capital is not a worry for us right now. We have improved our numbers. Our debt to equity is 0.8. We have done quite well in terms of addressing our issues. The new age products are coming in, are bringing in profits, of course. In any growth phase, in any company's phase, if you're growing step by step organically, working capitals will be stretched time and again. We have seen multiple cycles. We are existing for almost four decades, 40 years. We know how to operate with lower working capital requirements versus what we are doing.
However, we have done well. We are now positive. Hopefully, it is going to continue to do that because the trajectory of the growth ensures that we will have positive cash flows. Working capital requirements will always be there. We might require more debt. We might require more working capital as we are growing. We are growing faster than anticipated. Of course, we are going to require. Are we improving? Yes. Are our profits improving? Yes. Are we reaching more demographics?
Yes. As long as our products are doing sustainably well, as long as we are able to repay our debts, as long as we are able to service the interest, as long as we are now in positive cash flow, that we were after a long time of investment, we are doing quite well. I completely understand your concern, we have mitigated those concerns. We have addressed upon it, and the numbers are speaking for itself.
Thank you. Ladies and gentlemen, we will take that as the last question for today. I would now like to hand over the call to Ms. Sakhi Panjiyara for closing comments. Over to you, ma'am.
Thank you everyone for joining the conference call at Fredun Pharmaceuticals Limited. If you have any further queries, you can write to us at research@kirinadvisors.com. Thank you, Fredun, sir, for your time. Once again, thank you everyone for joining the conference call. Good day.
Thank you. On behalf of Kirin Advisors Private Limited, that concludes this conference. Thank you all for joining us today, and you may now disconnect your lines.