1. At a Glance – The “Doctor, Patient Is Stable… But Bills Are Wild” Edition
OneSource Specialty Pharma Ltd currently sits on a ₹16,413 crore market cap, trading at ₹1,432, down ~22% in 3 months and ~28% in 6 months, which tells you the market mood faster than any analyst note. On paper, this is a global biologics CDMO, born out of Strides Pharma’s demerger, blessed with EU-GMP + USFDA approved plants, and flexing a 27–28% operating margin in its better quarters.
But then reality walks in wearing Crocs.
Despite FY25 sales of ₹1,445 crore, TTM PAT is only ₹20 crore, ROCE is 5.52%, ROE is 3.34%, and interest coverage is an anxiety-inducing 1.01x. The stock trades at 537x earnings, not because profits are exploding, but because profits are microscopic relative to enterprise value.
Debt stands at ₹1,295 crore, promoter holding has slid to ~29.9%, and 18.5% promoter shares are pledged. Meanwhile, FIIs and DIIs are increasing exposure like they’re betting on “FY27 will fix everything”.
So what is this company?
A future biologics powerhouse?
Or a very expensive incubation centre funded by debt and hope?
Let’s open the audit file.
2. Introduction – Born From a Demerger, Raised on Capex, Judged by Cash Flow
OneSource Specialty Pharma Ltd didn’t grow organically like a typical mid-cap pharma. It was engineered.
In September 2023, Strides PharmaScience carved out its CDMO + Oral Softgel business, merged it with Steriscience’s injectables CDMO, parked it inside Stelis Biopharma, and then rebranded it in Feb 2024 as OneSource Specialty Pharma Ltd. Classic corporate move: separate the “future story” from the “legacy headache”.
The idea was simple:
- Strip out low-margin generics
- Build a pure-play CDMO + biologics platform
- Raise capital independently
- Get global clients
- Let valuation imagination do the rest
And to be fair, revenue did scale fast.
Sales jumped from ₹172 crore in FY24 to ₹1,445 crore in FY25. That’s not a typo.
But profits?
Still recovering from years of losses, heavy depreciation, interest costs, and biologics gestation timelines that move slower than regulatory approvals.
This is not a “quarterly momentum” stock.
This is a “believe for 5 years or suffer for 5 quarters” situation.
So let’s understand what exactly they do before we judge the balance sheet carnage.
3. Business Model – WTF Do They Even Do? (CDMO Edition)
OneSource is a Contract Development and Manufacturing Organisation (CDMO) focused on complex injectables, biologics, biosimilars, soft gelatin capsules, and drug-device combinations.
Translation for lazy investors:
“They don’t sell medicines to patients. They build and manufacture very complicated drugs for pharma companies who don’t want to do it themselves.”
Their value chain covers:
- Pre-clinical & clinical development
- Process development
- Technology transfer
- Commercial manufacturing
- Regulatory support
Revenue mix FY24:
- ~98% from contract manufacturing & development fees
- No branding risk
- No marketing burn
- But high capex + high compliance + high debt
Facilities:
- 2 plants in Karnataka
- EU-GMP + USFDA approved
- 85,000+ sq. m. manufacturing space
- 400 million units annual capacity
This is a capex-heavy, patience-heavy business. You spend years building plants, getting approvals, bleeding cash — and only later see operating leverage.
So the real question is not:
“Can they grow revenue?”
They already did.
The real question is:
“Can they convert EBITDA into cash and profit without refinancing every year?”
4. Financials Overview – Numbers That Look Strong… Until You Scroll Down
Quarterly Comparison Table (₹ crore)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 290 | 393 | 376 | -26.0% | -22.9% |
| EBITDA | 17 | 142 | 106 | -88.0% | -84.0% |
| PAT | -89 | -69 | 10 | Deteriorated | -990% |
| EPS (₹) | -7.74 | -0.02 | 0.92 | — | — |
