OneSource Specialty Pharma (ONESOURCE) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 performance met expectations, with revenue and EBITDA growth, and progress toward GLP-1 and DDC commercialisation in H2.

• Strategic partnership with Xbrane in biologics strengthens the drug substance business and accelerates regulatory inspections.

• Cleared US FDA, ANVISA, and other regulatory inspections, supporting upcoming commercial launches.

• Board approved evaluation of potential acquisitions in Poland and Baroda, which could significantly increase revenue and EBITDA guidance.

• Consolidated revenue for Q1 FY26 was Rs. 3,272.70 million, up from Rs. 2,922.89 million in Q1 FY25, with a narrowed net loss.

Financial highlights

• Q1 FY26 revenue was INR 3,273 million ($38.2m), up 12% year-over-year.

• EBITDA grew 37% year-over-year to INR 885 million ($10.3m), with margins improving by 500 basis points to 27%.

• Adjusted PAT for the quarter was INR 371 million ($4.3m), compared to a negative PAT in the previous year.

• Adjusted EPS (annualized, fully diluted) was INR 3.2 per share ($0.04).

• Consolidated net loss narrowed to Rs. 43.99 million in Q1 FY26 from Rs. 466.16 million in Q1 FY25.

Outlook and guidance

• H1 expected to be muted, with significant revenue pickup in H2 as commercial supplies of semaglutide begin, subject to customer approvals.

• Organic revenue guidance of $400 million (INR 400 million) by FY 2028, with potential to exceed $500 million if acquisitions close.

• EBITDA guidance of $160 million organically, potentially exceeding $200 million post-acquisitions.

• Over 50% of planned $100m capex for capacity expansion already committed, with accelerated program and 200 million cartridge capacity expected by end of 2026.

• Targeting >50% ROCE and net cash positive position by FY28.