Shares of OneSource Specialty Pharma Ltd., the demerged entity of Strides Pharma, along with the CDMO business of Steriscience Specialties Pvt. Ltd., surged as much as 8% on Tuesday, October 27, in response to its September quarter results, which were strong on an operational basis compared to the base quarter.
Net profit for the period increased to ₹57.4 crore from ₹10.4 crore last year. The growth in profitability was aided by a healthy revenue performance and margin expansion.
Onesource reported revenue of ₹516.2 crore, which is a growth of 37.4% from the same quarter last year, when it had reported a figure of ₹376 crore. According to its post-earnings release, Onesource’s revenue growth was aided by the new DDC capacity, strong MSA execution and multiple product launches across all business segments.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹163.2 crore, a 53% year-on-year jump from ₹107 crore it reported during the year-ago quarter.
EBITDA margin expanded by over 300 basis points from last year to 31.6% from 28.4% on a year-on-year basis. Margin expansion during the quarter was driven by operating leverage from higher volumes across businesses.
On a sequential basis, Onesource’s revenue grew 15%, EBITDA jumped 32%, while margins expanded by over 400 basis points.
The company has also maintained its financial year 2028 guidance of $400 million in organic revenue and 40% in steady state EBITDA margin.
Scaling across markets and customers supported by capacity expansion, biologics funnel expanding, sterile injectable and softgel platforms getting new capability investments and strong repeat business will be key drivers for the company’s growth.
In its investor presentation, Onesource said that its DDC capacity will triple for financial year 2028 as two cartridge lines begin commercial operations and line 3 FAT gets completed. The company also said that the biologics platform is gaining momentum with new customer wins and a robust funnel.
Shares of Onesource began trading on the bourses in January 2025 at a price of ₹1,800 per share, a 6.9% to its pre-open discovery price. The stock is currently trading 7.3% higher on Tuesday after the results announcement, at ₹1,500. The stock is still down 23% from its recent 52-week high of ₹1,925.