Onesource Specialty Pharma , a pure-play specialty pharmaceutical CDMO, has reported strong financial results for the second quarter of fiscal year 2026, demonstrating robust growth and improved profitability.

Q2FY26 Financial Highlights

The company's performance was driven by the execution of Master Service Agreements (MSAs) and IP-led base business sales. OneSource signed 9 new MSAs and licensing agreements across different platforms during the quarter, including repeat business from existing customers.

Operational Updates

OneSource continues to see strong momentum in drug-device-combinations (DDCs) and its base business of soft gel capsules and injectables. The company has onboarded two new device platforms, bringing its total to 11, further expanding its end-to-end capabilities in DDCs.

To support upcoming commercial supplies, OneSource is accelerating its Phase 2 capacity expansion. The company plans to increase its cartridge capacity from 40 million to approximately 220 million units.

Strategic Developments

During the quarter, OneSource entered into a Composite Scheme of Arrangement and Amalgamation, which includes the merger of Brooks Steriscience Limited, Steriscience Pte Limited, and Strides Pharma Services Private Limited with the company. This strategic move aims to strengthen OneSource's market position and expand its capabilities.

The company has also proposed acquisitions of a multi-dose fill-finish site in Europe and an integrated carbapenem facility in India, which are expected to enhance its global footprint and expand its addressable market in anti-infectives.

Biologics Growth

OneSource reported a significant boost to its biologics funnel, with an approximately 4x increase compared to FY25. This growth is attributed to strengthened sales and marketing efforts, customer interactions, and participation in biologics-focused trade shows. The company is also benefiting from supportive industry tailwinds, including easing regulatory pathways for biosimilar development in the US.

Outlook

Based on its performance and strategic initiatives, OneSource has raised its FY28 revenue outlook to $500 million, with an expected EBITDA margin of 40%. The company remains committed to its growth strategy, focusing on expanding its capabilities, increasing capacity, and strengthening its position in the global CDMO market.

Neeraj Sharma, CEO & MD of OneSource Specialty Pharma Limited, commented on the results, stating, "Q2 performance was underpinned by MSAs executions and sales from our IP led base business. DDC capacity addition is being accelerated to support upcoming customer launches. We are excited about recently approved proposed acquisition for multi-dose fill-finish site in Europe and integrated carbapenem facility in India and accordingly are raising our FY28 revenue outlook to $500m+."

As OneSource Specialty Pharma continues to execute its growth strategy, investors and industry observers will be watching closely to see how the company capitalizes on its expanding capabilities and market opportunities in the coming quarters.

OneSource Specialty Pharma , a leading contract development and manufacturing organization (CDMO), has announced its consolidated financial results for the quarter ended September 30, 2025. The company reported strong revenue growth and a return to profitability, driven by operational improvements and robust project execution.

Financial Highlights

The company reported a consolidated net profit of ₹104.85 million in Q2 FY2025-26, compared to a loss of ₹1.86 million in the preceding quarter. Revenue from operations grew 15.7% quarter-on-quarter to ₹3,787.63 million, reflecting a healthy order pipeline and growing demand across its key therapeutic segments.

Half-Year Performance

For the six-month period ended September 30, 2025, OneSource reported consolidated revenue of ₹7,060.33 million and a net profit of ₹102.99 million. This marks a significant turnaround compared to a net loss of ₹476.24 million reported in the same period last year. The company attributed this performance to improved operating leverage, higher plant utilization, and better cost control.

Operational Highlights

During the quarter, OneSource achieved strong growth in its core CDMO business, supported by increased client orders from both domestic and international markets. The company continued to expand its manufacturing footprint, focusing on complex injectables and specialty formulations.

The management noted that post-merger synergies and integration efficiencies contributed to margin improvement. Reduced exceptional expenses related to earlier listing and combination activities also supported profitability.

Management Commentary

In its investor update, the company stated that Q2 results reaffirm OneSource's growth strategy and its ability to deliver sustainable value. Management highlighted a consistent pickup in outsourcing contracts from global pharmaceutical majors and reiterated plans to expand capacity in high-margin product lines.

“The strong revenue growth and turnaround in profitability demonstrate the robustness of our CDMO model. We continue to focus on strengthening client partnerships, enhancing compliance systems, and driving operational excellence,” the company said in a statement.

Industry & Market Context

The global CDMO market continues to grow at a double-digit pace, supported by increasing outsourcing by large pharmaceutical companies. OneSource aims to leverage this trend through strategic collaborations, investments in sterile injectables, and compliance readiness across regulated markets like the US, EU, and Japan.

Ongoing Litigation

The company remains engaged in arbitration with Prestige Biopharma Limited concerning a claim of USD 136.32 million related to the Sputnik vaccine manufacturing contract. The matter is currently under review at the Singapore International Arbitration Centre (SIAC). Management clarified that the dispute does not impact ongoing business operations.

Financial Position

OneSource maintains a strong balance sheet, supported by disciplined capital allocation. As of September 30, 2025, total equity stood at healthy levels, and the company continues to operate with manageable leverage, enabling flexibility for future expansion projects.

Market Outlook

With strong revenue momentum, a return to profitability, and improving margins, OneSource Specialty Pharma is reinforcing its position as a key player in the Indian CDMO sector. Management expects continued growth in the coming quarters, backed by operational efficiency, new client wins, and a favorable outsourcing environment.

Conclusion

OneSource Specialty Pharma delivered a profitable quarter with a 15.7% increase in revenue and a turnaround from the previous quarter’s loss. The company’s focus on innovation, margin expansion, and international business development positions it well for sustainable growth in FY2025-26 and beyond.