OneSource Specialty Pharma reported strong Q2 FY’26 results with a 12% year-over-year revenue increase, reaching INR3,758 million. EBITDA grew by 37% to INR1,065 million, with margin expansion to 28%. The company is expanding capacity, particularly for drug-device combinations (DDC), and reiterates its INR500 million revenue outlook for FY’28. While a potential delay in the Canadian market impacts near-term revenue recognition, the overall outlook remains positive.
Strong Financial Performance
OneSource Specialty Pharma showcased robust financial results for Q2 FY’26. Key highlights include:
- Revenue: INR3,758 million, a 12% year-over-year growth.
- EBITDA: INR1,065 million, a substantial 37% increase.
- EBITDA Margin: Expanded to 28%, reflecting a 506 basis points improvement.
For the first half of the fiscal year, the company reported revenue of INR7,030 million and EBITDA of INR1,950 million, maintaining a 28% margin.
Business Highlights & Expansion
The company is experiencing strong demand for drug-device combinations (DDC) and is accelerating capacity expansion plans to meet anticipated needs. They are also seeing increased traction in their biologics business and expect significant growth. A recent acquisition is performing well, with a combined pro forma revenue of almost US$110 million at a healthy 30% EBITDA margin for the first half of the year.
Capacity & Customer Growth
OneSource now has over 20 customers, with over nine planning product launches outside of Canada. The company expects to have over 200 million units of capacity for pens by the end of calendar year 2026, almost a year ahead of schedule. They have added 26 new RFPs this quarter and have 12 customers common across modalities.
Market Outlook & Guidance
While acknowledging potential delays in the Canadian market due to external challenges, OneSource remains confident in its overall market position and reiterates its INR500 million revenue outlook for FY’28, subject to shareholder approvals. The company anticipates consolidating new business from the next financial year.
Revised Net Debt & Capex
OneSource’s net debt currently stands at INR 9033 million, an increase of INR 4326 million since March 2025, largely driven by ongoing capital expansion. This expansion includes pulling forward Phase 2 capacity expansion plans. The company now belongs to the ‘A’ credit rating family allowing it to secure financing on better terms.
Source: BSE
