OneSource Specialty Pharma Q2 Net Profit Jumps 448% YoY to ₹57.5 Crore as Margins Expand

Key numbers

Market Cap	₹16,023.37 CrPharmaceuticals
P/E Ratio	-329.56Sector PE: 45.1
RSI	39.39Near Neutral Zone
Promoter Holding	30.47%38.79% Pledged

Key highlights

• Net profit surged to ₹57.5 crore in Q2 FY27, representing a 447.6% increase from ₹10.5 crore in the year-ago period
• Revenue from operations reached ₹516 crore, a 15% sequential increase over the previous quarter
• Operating margins expanded to 10.2%, compared to 4.5% in Q1 FY27 and 1.5% in Q2 FY26
• Exceptional loss of ₹1.8 crore was recorded during the quarter, primarily related to legal fees from legacy litigation
• The company has deployed approximately 80% of its $100 million capex program to expand capacity to over 9 crore units

Revenue Growth and Capacity Deployment

OneSource Specialty Pharma reported a top line of ₹516 crore for the quarter ended September 2026, marking a 37% increase over the ₹376 crore reported in the same period last year. This growth is supported by the company’s transition into a specialized Contract Development and Manufacturing Organization (CDMO). The results follow the scheduled commissioning of a second cartridge line in Q2 FY27, part of a broader $100 million capital expenditure program.

Management previously disclosed that 80% of this capex has been deployed to increase drug-device combination capacity to over 9 crore units, supporting the company's long-term organic revenue guidance of $400 million by FY28.

Operational Efficiency and Margin Expansion

Operating margins showed substantial improvement, rising to 10.2% from 1.5% in the corresponding quarter of the previous year. Profit before tax reached ₹52.9 crore, a significant shift from the ₹5.7 crore recorded in Q2 FY26. The bottom line was impacted by an exceptional loss of ₹1.8 crore, which the company attributed to legal fees arising from legacy litigation involving its subsidiary and the Sputnik vaccine.

Despite these non-recurring costs, the sharp sequential and annual increase in net profit indicates stronger operational leverage as new capacities come online.

Legal and Segmental Developments

• Effective April 1, 2025, the company has consolidated its reporting into a single CDMO segment
• The Group is contesting a USD 136.32 million claim from Prestige Biopharma at the Singapore International Arbitration Centre
• Total consolidated assets as of September 30, 2026, stood at ₹8,586 crore
• Property, plant, and equipment increased to ₹954.7 crore from ₹727.4 crore in March 2026
• Borrowings of ₹367.7 crore were reclassified from non-current to current liabilities following a breach of covenants and subsequent waivers

What to watch next

• Progress toward the FY28 organic revenue guidance of $400 million and 40% EBITDA margin
• Outcome of the pending SIAC arbitration regarding the Sputnik vaccine contract manufacturing agreement
• Ramp-up of commercial operations for newly commissioned drug-device combination lines

“Effective April 01, 2025, the CODM evaluates the business, including resource allocation and performance assessment as a single segment, i.e. 'Contract Development and Manufacturing Organization' (CDMO).”

Onesource Specialty Pharma · financial snapshot

Share price	₹1397.3
Market capitalisation	₹16,023.37 Cr
Revenue (annual)	₹1,421.59 Cr
Net profit (annual)	-₹73.80 Cr
Revenue (latest quarter)	₹449.02 Cr+4.86% vs previous quarter
Net profit (latest quarter)	₹25.00 Cr+443.77% vs previous quarter
P/E (TTM)	-329.56×Sector 45.1×
Promoter holding	30.47%-0.01% QoQ
FII holding	19.45%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.