OneSource Specialty Pharma reports stellar Q3FY25 earnings with 85% EBITDA growth, setting stage for expansion
OneSource Specialty Pharma Limited, formerly Stelis Biopharma Limited, has delivered a strong financial performance in its first full quarter post-listing. The company reported Q3FY25 revenue of ₹3,926 million, reflecting an 18% quarter-on-quarter (QoQ) growth, with EBITDA soaring 85% QoQ to ₹1,432 million. The company’s EBITDA margin expanded to 36.5%, up by 1,334 basis points, underscoring robust operational execution and increasing profitability.
The results mark a significant milestone for India’s first specialty pharma pure-play contract development and manufacturing organisation (CDMO), reinforcing its positioning in biologics, drug-device combinations, sterile injectables, and oral technologies.
How did OneSource Specialty Pharma perform in Q3FY25?
OneSource Specialty Pharma’s financial results for the third quarter of FY25 highlight the company’s strong operational efficiency and revenue growth trajectory. Its gross margin climbed to ₹3,023 million, a 35% increase from the previous quarter, reflecting enhanced cost efficiencies and an improved product mix. The company also reported a normalized profit after tax (PAT) of ₹898 million, translating into an earnings per share (EPS) of ₹7.8.
However, the reported PAT was impacted by one-time transaction and setup costs related to its transition into an independent platform. These non-recurring expenses excluded, the company’s core earnings indicate strong underlying profitability.
According to OneSource Specialty Pharma CEO Neeraj Sharma, the company’s Q3 results are a testament to its growth potential and expanding global footprint. Sharma stated:
“Our first full quarter as an independent platform has been exceptional. The strength of our Q3 performance, combined with strategic new business wins across multiple modalities, affirms our ability to scale efficiently. We are well-positioned to achieve our FY25 targets while delivering significant value to our global partners and stakeholders.”
What is driving OneSource Specialty Pharma’s revenue growth?
OneSource’s 18% QoQ revenue growth in Q3FY25 is primarily attributed to increasing demand in the CDMO market, particularly in drug-device combinations and biologics manufacturing. The company serves over 60 global clients, including 20 GLP-1 customers, positioning itself as a leading CDMO partner for advanced drug development and sterile manufacturing.
The company operates five state-of-the-art manufacturing facilities, all of which have received approvals from major regulatory bodies, including the United States Food and Drug Administration (USFDA) and the European Medicines Agency (EMA). Its ability to deliver complex formulations across diverse therapeutic modalities has made it an attractive partner for global pharmaceutical companies seeking high-quality outsourcing solutions.
Key growth drivers for OneSource Specialty Pharma include:
- Rising demand for GLP-1 therapies in obesity and diabetes treatment
- Expanding biologics and sterile injectables market
- Strong pipeline of new CDMO projects, with over 20 drug-device combination programs
- Industry-leading regulatory compliance, with 54 successful audits in the last two years
The company’s emphasis on cost-effective, high-quality manufacturing is also playing a pivotal role in driving revenue. As more global pharmaceutical companies seek to diversify their supply chains, OneSource Specialty Pharma is emerging as a preferred CDMO partner due to its scale, compliance track record, and innovative capabilities.
Is OneSource Specialty Pharma on track to meet its FY25 financial targets?
With nine-month FY25 revenue at ₹10,189 million, OneSource is on course to achieve its full-year target of ₹13,375-₹15,047 million. The company also projects Q4FY25 EBITDA of at least ₹1,672 million, reinforcing its strong financial outlook.
Additionally, OneSource has significantly reduced its net debt from ₹11,660 million to ₹5,817 million, improving its balance sheet and financial flexibility. The company expects to become debt-free within the next three to four years, further strengthening its profitability and cash flow.
Sharma emphasized that OneSource’s rapid expansion and operational efficiencies are setting a strong foundation for long-term growth, with the company aiming to establish itself as a dominant player in the global CDMO sector.
How is OneSource Specialty Pharma investing in future growth?
OneSource has laid out an ambitious $100 million capital expenditure plan over the next four years, aimed at expanding its manufacturing capabilities and reinforcing its position in high-growth CDMO segments. The company is actively investing in increasing cartridge and pre-filled syringe manufacturing capacity, which will cater to the growing demand for sterile injectables and biologics.
With a strong pipeline of over 20 ongoing drug-device combination projects, OneSource is positioned to capture increasing market share in drug delivery solutions. Additionally, its soft gelatin capsule manufacturing unit, one of the largest in the world, gives the company a strategic advantage in high-demand oral formulations.
Key investment areas include:
- Capacity expansion for drug-device combinations
- Enhancements in biologics and sterile injectables manufacturing
- Development of proprietary CDMO platforms for complex formulations
- Strengthening of regulatory and compliance frameworks to support global expansion
With these strategic investments, OneSource aims to achieve an EBITDA margin of 40% by FY27-29, positioning itself among the top global CDMOs in terms of profitability and operational efficiency.
Can OneSource Specialty Pharma sustain long-term growth in the CDMO industry?
The global contract development and manufacturing organisation (CDMO) market is undergoing rapid transformation, driven by increasing demand for advanced therapeutics, regulatory shifts, and the rising cost of in-house manufacturing. OneSource’s comprehensive CDMO solutions, spanning biologics, sterile injectables, and complex drug formulations, provide a strong competitive edge in this evolving landscape.
By capitalizing on emerging trends in GLP-1 therapies, biologics, and next-generation drug delivery solutions, OneSource is well-positioned to expand its market share and drive sustained long-term growth.
With a solid financial foundation, growing global client base, and cutting-edge manufacturing capabilities, OneSource Specialty Pharma is not only meeting current industry demands but also setting new benchmarks for CDMO innovation and efficiency.
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