OneSource Specialty Pharma Reports Strong Q3 FY25 Performance with Robust Growth in Revenue and EBITDA

Bengaluru, India | January 29, 2025 – OneSource Specialty Pharma Limited (BSE: 544292, NSE: ONESOURCE), formerly known as Stelis Biopharma Limited, has reported strong financial results for Q3 FY25, marking a significant milestone in its first quarter post-listing. The company witnessed notable revenue growth, improved margins, and strong operational performance.

Financial Highlights for Q3 FY25​

• Revenue: ₹3,926 million, up 18% QoQ.
• EBITDA: ₹1,432 million, reflecting an 85% QoQ growth.
• EBITDA Margin: 36.5%, expanding by 1,334 basis points (bps) QoQ.
• Gross Margin: ₹3,023 million, improving 35% QoQ, with a gross margin percentage of 77%.
• Normalized Profit After Tax (PAT): ₹898 million, with an EPS of ₹7.8.
• Reported PAT: Negative ₹688 million, impacted by one-time costs related to OneSource's setup and transaction expenses.

Strategic Growth and Performance Drivers​

OneSource's robust Q3 performance was driven by strong business wins across multiple modalities, demonstrating the company's commitment to becoming a leading global contract development and manufacturing organization (CDMO).
CEO Neeraj Sharma emphasized, "We are off to a promising start as an independent platform. Our strong Q3 results and impressive new business wins demonstrate that we are on track to achieving our targeted FY25 outcomes. We remain committed to delivering significant value and establishing ourselves as India's leading CDMO on the global stage."

Nine-Month FY25 Financial Performance​

For the nine months ended December 31, 2024:

• Revenue: ₹10,189 million.
• EBITDA: ₹2,848 million, with an EBITDA margin of 28%.
• Gross Margin: ₹7,436 million, with a 73% gross margin percentage.

Key Developments and Business Strategy​

OneSource continues to make significant strides in the pharmaceutical CDMO space:

• The company raised ₹8,010.61 million by issuing 6.28 million equity shares at ₹1,276 per share.
• OneSource completed the merger of CDMO businesses from Strides Pharma Science Limited and Steriscience Specialities Private Limited, effective April 1, 2024.
• The Mumbai Bench of the National Company Law Tribunal (NCLT) approved the merger, enhancing business capabilities and a stronger market position.

Financial Position and Debt Management​

OneSource reported an improved financial position:

• Net Worth: ₹57,821 million, up from ₹50,558 million in Q2 FY25.
• Debt-to-Equity Ratio: Reduced to 0.19x from 1.08x in the previous year.
• Net Debt: Declined significantly from ₹11,660 million to ₹5,817 million, with a projected target of becoming debt-free in 3-4 years.

Future Outlook​

OneSource remains on track to achieve its FY25 financial targets:

• Projected Revenues for FY25: ₹13,375 - ₹15,047 million.
• Projected EBITDA for FY25: ₹4,598 - ₹5,099 million, with a target EBITDA margin of over 30%.
• Planned Capital Expenditure: $100 million over four years to expand manufacturing capacities in sterile injectables, pre-filled syringes, and drug-device combinations.

Regulatory and Legal Matters​

The company has also been engaged in legal proceedings with Prestige Biopharma Limited regarding a claim of USD 136.32 million (₹11,674.64 million) related to a terminated contract for manufacturing the Sputnik Light vaccine. OneSource has counterclaimed and is actively contesting the matter at the Singapore International Arbitration Centre (SIAC).

Conclusion​

With substantial financial performance, successful integration of acquired businesses, and strategic expansion initiatives, OneSource Specialty Pharma is positioned for sustained growth in the global CDMO market. The company's focus on innovation, operational excellence, and disciplined financial management is expected to drive long-term value for its stakeholders.