ONYX - Onyx Biotec

📊 NSE: ONYX 🏢 Pharmaceuticals - Indian - Bulk Drugs & Formln 📅 Last Updated: 12/14/2025 10:43

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: Manufacturing of Pharmaceutical Products. Standalone revenue grew 15.26% YoY from INR 5,374.88 Lakhs in FY24 to INR 6,195.14 Lakhs in FY25. H1 FY26 revenue reached INR 3,458.30 Lakhs, a 14.7% increase over H1 FY25.

Geographic Revenue Split

Primarily domestic Indian market; 100% of manufacturing operations are concentrated in Himachal Pradesh (Unit I and Unit II in Nalagarh).

Profitability Margins

Net Profit Margin improved from 6.76% in FY24 to 8.00% in FY25. However, H1 FY26 saw a net loss margin of -2.6% (INR 90.05 Lakhs loss) primarily due to a one-time provision for doubtful debts of INR 150 Lakhs.

EBITDA Margin

18.2% in FY25 (INR 1,151.11 Lakhs), up from 15.7% in FY24 (INR 846.37 Lakhs), representing a 250 bps improvement in core profitability.

Capital Expenditure

Historical CapEx includes INR 2,538.02 Lakhs raised via IPO (net of expenses) on November 22, 2024, utilized for upgrading Unit I for large volume parentals and setting up high-speed packaging lines at Unit II.

Credit Rating & Borrowing

Finance costs decreased by 5.7% from INR 210.66 Lakhs in FY24 to INR 198.55 Lakhs in FY25 following the repayment of long-term loans using IPO proceeds.

⚙️ Operational Drivers

Raw Materials

Active Pharmaceutical Ingredients (APIs) and specialized packaging materials for sterile injectables, representing 62.3% of total revenue (INR 3,860.51 Lakhs in FY25).

Capacity Expansion

Current capacity not explicitly stated in MT; expansion includes upgrading Unit I to manufacture large volume parentals for intravenous use and installing a high-speed cartooning packaging line at Unit II for Dry Powder Injections.

Raw Material Costs

Raw material costs were INR 3,860.51 Lakhs in FY25 (62.3% of revenue), compared to INR 3,616.87 Lakhs in FY24 (67.3% of revenue), showing a 5% improvement in procurement efficiency.

Manufacturing Efficiency

Debtors turnover ratio decreased from 5.26 times in FY24 to 3.48 times in FY25, indicating a slowdown in collection efficiency.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Achieving growth through the upgradation of Unit I to manufacture large volume parentals for intravenous use and installing high-speed packaging lines at Unit II to increase throughput for dry powder injections, supported by the INR 2,538.02 Lakhs raised via IPO.

Products & Services

Water for Injection (WFI), Dry Powder Injections, and Dry Powder Syrup.

Brand Portfolio

Onyx Biotec.

New Products/Services

Large volume parentals for intravenous use, expected to contribute to revenue following the completion of the Unit I upgrade.

Market Expansion

Expansion into the large volume parentals market via facility upgrades in FY26, targeting the intravenous use segment.

🌍 External Factors

Industry Trends

The Indian pharma industry is projected to reach US$ 100 billion in exports by 2030. Key trends include the Production Linked Incentive (PLI) scheme and a shift toward high-value specialized products like sterile injectables.

Competitive Landscape

Operates in the highly competitive generic pharmaceutical market against both large-scale players and SME manufacturers.

Competitive Moat

Cost leadership in generic sterile products (WFI) and high-speed manufacturing capabilities. The moat is sustained by high regulatory barriers (Schedule M compliance) and the capital-intensive nature of sterile manufacturing environments.

Macro Economic Sensitivity

Sensitive to healthcare spending and government pharma policies; industry growth is linked to India's US$ 100 billion export target for 2030.

Consumer Behavior

Increasing demand for affordable generic medicines and sterile injectable formulations in the domestic market.

Geopolitical Risks

Potential impacts on API imports and global supply chain disruptions affecting the US$ 100 billion export potential of the Indian pharma sector.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Indian Accounting Standard 25 for interim reporting and SEBI (LODR) Regulations 2015. Manufacturing must adhere to Schedule M and other pharma-specific quality standards.

Taxation Policy Impact

Effective tax rate of 23.6% in FY25 (INR 152.39 Lakhs total tax on INR 647.82 Lakhs PBT).

⚠️ Risk Analysis

Key Uncertainties

Credit risk from trade receivables, as evidenced by the INR 150 Lakhs provision for doubtful debts in H1 FY26, which turned the period into a net loss of INR 90.05 Lakhs.

Geographic Concentration Risk

100% of manufacturing operations are located in Nalagarh, Himachal Pradesh, creating a high dependency on the regional industrial climate and state-specific regulations.

Technology Obsolescence Risk

The company is mitigating technology risks by investing in high-speed cartooning packaging lines and upgrading Unit I to modern large-volume parental standards.