ONESOURCE - OneSource Speci.

📊 NSE: ONESOURCE 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 10:42

💰 Financial Performance

Revenue Growth by Segment

OneSource reported H1 FY26 revenue of INR 7,030 million, representing a 12% YoY growth. The proforma combined revenue for H1 FY26 reached $110 million, driven by the integration of CDMO businesses from Strides and Steriscience.

Geographic Revenue Split

The company derives 100% of its revenue from international markets, with 50% specifically coming from the US market. Production is primarily based in India and exported to regulated, growth, and access markets.

Profitability Margins

In Q2 FY26, the company reported an adjusted PAT of INR 449 million. The company achieved a break-even PBILDT for the first time in Q4 FY24, following a net loss of INR 391 crores in FY24 and INR 800 crores in FY23.

EBITDA Margin

EBITDA margin for Q2 FY26 expanded to 28%, a 506 basis point improvement YoY. Proforma combined EBITDA margin for H1 FY26 stood at 30% ($33 million EBITDA on $110 million revenue).

Capital Expenditure

The company is utilizing proceeds from a pre-listing fundraise for capex to add new capacity, with a typical lead time of two years. New capacity is expected to be operational by calendar year 2026.

Credit Rating & Borrowing

CARE Ratings reaffirmed ratings, noting that net debt to PBILDT is expected to fall below 2.5x by March 2025. Net debt for the incoming business stands at $11.5 million as of September 30, 2025, trending toward $7-$8 million.

⚙️ Operational Drivers

Import Sources

Production is centered in India, with finished products exported to overseas subsidiaries for sale in approximately 100 countries.

Capacity Expansion

Current installed capacity for the DDC (Sterile Injectables) business is 40 million units, with deliverable capacity ranging between 15 million to 20 million units. Expansion is planned for completion in CY 2026.

Raw Material Costs

Raw material price volatility contributed to margin moderation in FY22. The company uses natural hedges and forward covers to mitigate these costs and forex fluctuations.

Manufacturing Efficiency

Working capital utilization was at 90% for the 12 months ending April 2024. The company operates 7 manufacturing facilities, 4 of which are US FDA approved.

Logistics & Distribution

Distribution spans approximately 100 countries, with significant exposure to regulated markets like the USA and UK.

📈 Strategic Growth

Expected Growth Rate

12%

Growth Strategy

Growth will be achieved through an integrated CDMO model combining Biologics, Sterile Injectables, and Softgel. Strategies include cross-selling (12 common customers across modalities), 26 new RFP wins in a single quarter, and a material profit-share partnership with NATCO for first-to-file opportunities.

Products & Services

CDMO services for Biologics, Sterile Injectables, Softgel, and GLP-1 products.

Brand Portfolio

OneSource Specialty Pharma Limited (formerly Stelis Biopharma Limited).

New Products/Services

First Commercial Service Agreement (CSA) for a GLP-1 launch expected in FY25; 26 new RFPs added in the most recent quarter.

Market Expansion

Expansion into 100 countries with a focus on regulated markets; non-Canadian markets expected to open up from April 2026.

Strategic Alliances

Partnership with NATCO for profit-sharing on first-to-file SKUs; backing from global and local PE players.

🌍 External Factors

Industry Trends

The CDMO industry is evolving toward integrated service providers. OneSource is positioning itself as a single-source partner for Biologics and complex injectables to capture higher wallet share.

Competitive Landscape

Competes with established global CDMO players; currently has a moderate size and requires volume growth for operational efficiencies.

Competitive Moat

Moat is built on 4 USFDA-approved facilities, an integrated 'OneSource' modality model that encourages cross-selling, and a 2-year lead time barrier for competitors to add similar sterile capacity.