OneSource Specialty Pharma Limited Navigates Transitional Q3 FY26 Amid Delayed Approvals, Reaffirms Robust FY28 Growth Guidance

OneSource Specialty Pharma Limited reported its consolidated financial results for the third quarter of FY26, describing the period as a transitional phase affected by regulatory timing in international markets. Despite a sharp decline in revenue and profitability, the management reiterated confidence in the company’s long-term trajectory and reaffirmed its ambitious financial targets for FY28.

Q3 FY26 Performance Overview

For the quarter ended December 31, 2025, the company posted subdued financial figures. Consolidated revenue stood at Rs 2,903 million, down 26 per cent year-on-year (YoY) compared to Rs 3,926 million in Q3 FY25. EBITDA declined 88 per cent YoY to Rs 173 million versus Rs 1,419 million a year earlier, with the EBITDA margin contracting to 6 per cent from 36 per cent in Q3 FY25. Adjusted Profit After Tax (PAT) registered a loss of Rs 472 million, while adjusted Earnings Per Share (EPS) came in at (Rs 4.1).

Management attributed the revenue dip to deferred earnings pending customer approvals for Semaglutide in Canada. The EBITDA decline was further impacted by a largely fixed cost structure that remained unchanged despite lower quarterly revenues.

Operational Commentary and Biologics Momentum

CEO & MD Neeraj Sharma emphasized that demand fundamentals remain intact, underscoring a healthy Order Book and strong interest in the company’s capabilities. He noted that the delay in Canada has prolonged the transition from the Manufacturing Services Agreement (MSA) phase to the Commercial Supply Agreement (CSA) phase, affecting near-term revenue recognition. However, the sales funnel continues to expand.

The biologics segment emerged as a key positive highlight during the quarter. OneSource onboarded another global biosimilar player and reported its sales funnel at a historic high, reinforcing the company’s strategic focus on high-growth specialty pharmaceutical verticals.

FY28 Guidance Correction and Outlook

On January 24, 2026, the company issued an addendum to correct a typographical error in its earlier press communication regarding future guidance. The correction clarified that the FY28 organic revenue target is USD 400 million (and not Rs 400 million), while the total revenue target including proposed acquisitions is USD 500 million.

In addition to the revenue outlook, OneSource reaffirmed the following long-term targets:

• EBITDA margin of approximately 40 per cent
• Return on Capital Employed (ROCE) above 50 per cent for the organic business
• Net-to-EBITDA ratio below 1.5x

About Company 

OneSource Specialty Pharma is a pure-play specialty pharmaceutical Contract Development and Manufacturing Organization (CDMO) focused on complex, high-value products. Its portfolio spans biologics, drug-device combinations, sterile injectables and oral technologies including soft gelatin capsules. The company operates five manufacturing facilities approved by global regulators and employs over 1,400 professionals.

The stock price is trading 23 per cent up from its 52-week low.

Disclaimer: The article is for informational purposes only and not investment advice.