OneSource Specialty Pharma Reports Q2 FY25 Results; Losses Continue Despite Revenue Growth

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Bengaluru, January 25, 2025OneSource Specialty Pharma Limited (formerly Stelis Biopharma Limited) has reported its unaudited financial results for Q2 FY25, showing continued losses despite a sharp rise in revenue. The company operates in the Contract Development and Manufacturing Organization (CDMO) space. It remains focused on restructuring efforts and financial stabilization.

Key Financial Highlights (Standalone) – Q2 FY25

  • Revenue from Operations: ₹679.8 million, up 101.7% YoY from ₹337.1 million in Q2 FY24.
  • Total Income: ₹685.6 million, compared to ₹338 million in Q2 FY24.
  • Net Loss: ₹400.2 million, improving from ₹866.6 million Loss in Q2 FY24 but widening from ₹320.9 million in Q1 FY25.
  • EBITDA Margin: Negative due to high operating expenses and finance costs.
  • Total Expenses: ₹1,076.3 million, with significant costs in employee benefits (₹227.7 million), finance (₹207.1 million), and depreciation (₹190.6 million).
  • Loss Per Share (Basic & Diluted): ₹9.63, compared to ₹20.86 in Q2 FY24.

Financial Position & Debt Situation

  • Total Assets: ₹12,830.5 million as of September 30, 2024, down from ₹13,085.7 million in March 2024.
  • Total Liabilities: ₹8,760.6 million, with ₹4,119.9 million in current liabilities, exceeding current assets of ₹1,584 million.
  • Debt-to-Equity Ratio: 1.50x, showing high leverage.
  • Ongoing Fundraising: The company is in advanced talks to raise ₹8,010 million from investors to stabilize its financial position.

Key Developments & Future Outlook

  • Business Restructuring: The company completed the sale of its Unit-3 Multimodal Facility to Syngene International for ₹6,170 million, helping ease financial strain.
  • CDMO Expansion: Focus on contract manufacturing services, with new Manufacturing Services Agreements (MSA) signed.
  • Pending Legal Dispute: Biolexis Pte Ltd, a subsidiary, faces a $136.3 million claim from Prestige Biopharma, which the company has legally contested at SIAC (Singapore International Arbitration Centre).

Market Outlook & Investor Sentiment

Despite rising revenues, OneSource Specialty Pharma continues to post substantial losses. Its high debt levels and ongoing operational challenges make it challenging to raise capital. Investors will be closely watching the success of its fundraising efforts, debt restructuring, and CDMO expansion strategy.
 
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