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

Executive summary

• Transitioned from MSA phase to commercialization, achieving 12% YoY revenue growth in Q2 FY26 and a shift from loss to profit in adjusted PAT, with strong positioning in GLP-1 and DDC markets.

• Over 20 customers globally, with launches planned in Canada, India, Brazil, and MENA; commercial forecasts trending upward.

• Capacity fully sold out for DDCs, onboarding of new customers paused, and biologics business experiencing rapid growth, prompting accelerated expansion.

• Strategic acquisitions in Poland, Brooks, and proposed European and Indian sites are expected to boost growth and global footprint.

• Board approved a Composite Scheme of Arrangement and Amalgamation involving multiple subsidiaries for financial restructuring.

Financial highlights

• Q2 FY26 revenue reached INR 3,758 million ($43.1m), up 12% YoY; EBITDA grew 37% YoY to INR 1,065 million ($12.2m), with margin expansion to 28% (up 506 bps).

• First half revenue at INR 7,030 million, up 12% YoY; EBITDA at INR 1,950 million, maintaining 28% margin.

• Adjusted PAT for Q2 FY26 at INR 449 million ($5.2m), compared to a negative PAT last year; adjusted EPS at INR 3.9 per share (fully diluted) and $0.05.

• H1 FY26 proforma combined revenue (including acquisition): ~$110m; EBITDA margin: 32%.

• Net profit for Q2 FY26 was Rs. 104.85 million, compared to a net loss of Rs. 420.77 million in Q2 FY25.

Outlook and guidance

• FY 2028 revenue guidance reiterated at $500 million (including inorganic growth), with targeted EBITDA margin of ~40% and ROCE >50%.

• Accelerated capacity expansion for DDCs, targeting readiness for over 200 million units by end of CY 2026; 65% of $100m capex already committed.

• Expecting strong FY 2027 driven by multiple customer launches across global markets.

• Guidance for the current year withheld due to uncertainties in regulatory approvals and market launches.

• Regulatory approvals for the Composite Scheme of Arrangement and Amalgamation are being pursued.