NewsEarningsOneSource Specialty Pharma Reports Q2 FY2025-26 Results: Swings to Profit, Revenue Up 15.7%OneSource Specialty Pharma Reports Q2 FY2025-26 Results: Swings to Profit, Revenue Up 15.7%
OneSource Specialty Pharma reported a consolidated net profit of ₹104.85 million for Q2 FY2025-26, compared to a ₹1.86 million loss in Q1, as revenue rose 15.7% QoQ to ₹3,787.63 million. For H1 FY2025-26, revenue reached ₹7,060.33 million with a profit of ₹102.99 million, marking a turnaround from last year’s loss. Management highlighted stronger CDMO order flow, improved utilization, and a focus on margin expansion.
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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
| Metric | Q2 FY2025-26 | Q1 FY2025-26 | QoQ Change |
|---|---|---|---|
| Net Profit/(Loss) | ₹104.85 million | ₹(1.86) million | Swung to Profit |
| Revenue from Operations | ₹3,787.63 million | ₹3,272.70 million | +15.7% |
| Total Income | ₹3,798.40 million | ₹3,284.46 million | +15.6% |
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.
Historical Stock Returns for Onesource Specialty Pharma
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.90% | -6.02% | -16.48% | -12.68% | -10.40% | -10.40% |
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