India Ratings and Research (Ind-Ra) has affirmed OneSource Specialty Pharma Limited’s (OSPL) credit rating at ‘IND A-’/Positive for its bank loan facilities. The positive outlook reflects expectations of sustained revenue and profitability growth driven by Glucagon-like Peptide 1 (GLP-1) opportunities, capacity expansion, and strategic acquisitions. The ratings also consider OSPL’s strong business profile, client relationships, and healthy financial performance.
Rating Drivers
The affirmation of the ‘IND A-’/Positive rating is influenced by several key factors:
- Robust business profile and strong client relationships.
- Multi-entity amalgamation to strengthen the CDMO platform.
- Significant revenue potential from GLP-1 products during FY26 and beyond.
- Healthy financial performance in 1HFY26, with anticipated improvements in the medium to long term.
Financial Highlights and Expectations
In 1HFY26, OneSource Specialty Pharma reported a 12.2% year-over-year increase in consolidated revenue, reaching INR7,030 million, and EBITDA rose by 7.1% year-over-year to INR1,949 million. The company anticipates a revenue growth of 30% CAGR from FY25 to FY28, alongside steady-state EBITDA margins of approximately 40%, driven by DDCs, injectables, and SGC.
Strategic Developments
OSPL is focusing on expanding its capacities, particularly for cartridges, with a targeted five-fold increase by FY28. The company plans to invest USD100 million in capital expenditure, primarily funded through internal accruals, partner commitments, and debt. OSPL has also announced a multi-entity amalgamation to consolidate sterile injectables, softgel, and fill-finish operations.
Key Considerations
While OSPL is well-positioned for growth, certain risks and considerations remain, including regulatory and approval risks, foreign currency risk, and significant contingent liabilities. Specifically, the potential outcome of the arbitration in lieu of contingent liabilities of INR11 billion will be closely monitored.
Source: BSE
