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

Executive summary

• Q1 FY 2026 performance was in line with expectations, with consolidated revenue from operations reaching Rs. 3,272.70 million, reflecting year-over-year growth and progress toward GLP-1 commercialisation in H2 FY26.

• The company is transitioning from pre-approval to commercial revenues in its DDC portfolio, with significant commercial supplies of semaglutide expected in H2, subject to customer approvals.

• Strategic partnership with Xbrane in Biologics strengthens the drug substance business and accelerates regulatory inspections, with tech transfer for ranibizumab underway.

• Board has approved evaluation of potential related-party inorganic transactions, including acquisition of Polish and Baroda facilities, both US FDA-approved and expected to expand the global footprint.

• Secured 6 new contracts and received 25 RFPs across offerings, with major capacity expansion underway and successful regulatory inspections by US FDA and ANVISA.

Financial highlights

• Q1 FY 2026 revenue was INR 3,273 million (Rs. 3,272.70 million), up 12% year-over-year, with EBITDA growing 37% YoY to INR 885 million and margin improving by 500 bps to 27%.

• Adjusted PAT for the quarter was INR 371 million (positive $4.3m), compared to a negative PAT in the previous year; standalone profit after tax was Rs. 248.15 million.

• Adjusted EPS (annualized, fully diluted) stands at INR 3.2 per share; standalone EPS for Q1 FY26 was Rs. 2.17 (basic).

• Consolidated net loss narrowed to Rs. 43.99 million, a significant improvement from Rs. 466.16 million loss in Q1 FY25.

• Exceptional items for Q1 FY26 included Rs. 28.70 million in legal charges related to legacy litigation.

Outlook and guidance

• FY 2026 is seen as an inflection point, with commercial supplies of semaglutide expected to drive H2 growth and reaffirmed FY28 organic growth targets: >30% revenue CAGR and ~40% EBITDA margins.

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

• Debt/EBITDA expected to stay below 1.5x, with temporary increases possible due to accelerated CapEx.

• Capacity expansion for DDCs accelerated, with 200 million unit capacity expected to be qualified by end of CY 2026 and over 50% of planned $100m capex already committed.

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