OneSource Specialty Pharma (ONESOURCE) Q2 25/26 earnings summary

Executive summary

• Achieved strong Q2 and H1 FY2026 performance with double-digit revenue growth, margin expansion, and a shift from loss to profit in adjusted PAT, driven by robust order book, MSAs, and successful DDC and biologics launches.

• Accelerated capacity expansion plans, with readiness for 220 million units by end of 2026 and major acquisitions in Poland, Brooks, and proposed European and Indian facilities contributing to pro forma H1 revenue of $110 million at up to 32% EBITDA margin.

• Diversified customer base and global footprint, reducing dependency on single markets and expanding capabilities through acquisitions and new MSAs.

• Board approved a Composite Scheme of Arrangement and Amalgamation for financial restructuring and streamlining operations.

Financial highlights

• Q2 revenue at INR 3.758 billion ($43.1m), up 12% YoY; EBITDA grew 37% to INR 1.065 billion ($12.2m) with margin expansion to 28%.

• H1 revenue at INR 7.03 billion ($110m pro forma), up 12% YoY; H1 EBITDA at INR 1.95 billion, maintaining 28% margin.

• Adjusted PAT for Q2 at INR 449 million ($5.2m), compared to negative PAT last year; adjusted EPS at INR 3.9 ($0.05) per share.

• Net debt at INR 9.033 billion ($11.5m), up due to accelerated CapEx for capacity expansion.

• Basic EPS for Q2 FY26 was Rs. 0.92, compared to Rs. (3.89) in Q2 FY25.

Outlook and guidance

• FY2028 revenue guidance reiterated at $400 million for base business and raised to $500 million+ including inorganic growth, with targeted EBITDA margin of ~40% and ROCE >50%.

• Accelerated capacity expansion, with 65% of $100m capex already committed and phase 2 expansion to be operational a year ahead of schedule.

• Expectation of strong operating performance, though near-term revenue recognition may be impacted by regulatory and market launch timing.

• Pursuing regulatory approvals for major merger and restructuring scheme.