OneSource Specialty Pharma (ONESOURCE) Q3 24/25 earnings summary

Executive summary

• Achieved a successful listing on BSE and NSE after a complex NCLT process and major merger, unlocking significant value for shareholders and integrating CDMO and Soft Gelatin businesses from Strides and Steriscience.

• Achieved strong Q3 results in its first quarter as an independent platform, with significant new business wins and a robust project delivery track record serving over 60 global customers.

• Positioned as India's first specialty pharma CDMO with industry-leading capacities and compliance, including leadership in GLP-1 and DDC segments.

• Strong corporate governance and a highly accomplished board are being established.

• Consolidated net loss for Q3 was Rs. 688.49 million, showing improvement over the prior year.

Financial highlights

• Q3 FY25 revenue reached INR 3,926 million, up 18% quarter-over-quarter, with EBITDA at INR 1,432 million and a margin of ~36.5%.

• Nine-month FY25 revenue totaled INR 10,189 million, with EBITDA at INR 2,840 million and margins at 28%.

• Net worth increased to Rs. 57,821.34 million as of December 31, 2024.

• Normalized PAT for Q3 was INR 898 million, excluding one-time scheme-related expenses.

• Loss per share for the quarter was Rs. (6.31), improved from Rs. (38.68) in the prior year.

Outlook and guidance

• Guidance targets 25%-30% CAGR and INR 400 million revenue in 3-4 years, with EBITDA margins expected to reach 40%.

• FY25 revenue guidance is $160–$180 million, with EBITDA of $55–$61 million and margins above 30%.

• Plans to be debt-free by FY27, with debt/EBITDA targeted below 1 and steady-state expected by FY27.

• Management expects growth in the CDMO business, supported by new Manufacturing Services Agreements converting to commercial supply contracts.

• Expanded business portfolio and deeper client relationships post-merger expected to enhance future profitability.