28-Oct-2026 08:05:17
ONESOURCE SPECIALTY PHARMA Q2 CONCALL : MANAGEMENT REAFFIRMS $400 MILLION FY28 REVENUE & $160 MILLION EBITDA GUIDANCE; SEMAGLUTIDE DEMAND & DDC CAPACITY EXPANSION DRIVE GROWTH
• MANAGEMENT REAFFIRMS FY28 REVENUE GUIDANCE OF $400 MILLION & REPORTED EBITDA OF $160 MILLION, IMPLYING AN EBITDA MARGIN OF APPROXIMATELY 40% • MANAGEMENT EXPECTS H2 FY27 PERFORMANCE TO BE STRONGER THAN H1, SUPPORTED BY HIGHER DDC MANUFACTURING VOLUMES, SEMAGLUTIDE DEMAND & NEW CAPACITY • MANAGEMENT TARGETS ALL THREE DDC MANUFACTURING LINES TO BE AVAILABLE DURING FY28, WITH LINE 3 COMMERCIAL OPERATIONS EXPECTED IN Q4 FY27 OR EARLY FY28 • MANAGEMENT TARGETS ROCE IN THE HIGH-20% RANGE BY FY28-END, WHILE INDICATING AN INTENTION TO MAINTAIN LEVERAGE AROUND 1.5X EBITDA • Q2 REVENUE GREW 37% YOY & 15% QOQ TO OVER ₹500 CR, MARKING THE THIRD CONSECUTIVE QUARTER OF SEQUENTIAL GROWTH • Q2 EBITDA SURGED 53% YOY & 32% QOQ, WHILE EBITDA MARGIN EXPANDED OVER 400 BPS QOQ TO APPROXIMATELY 32% • DDC LINE 2 COMMENCED COMMERCIAL OPERATIONS IN SEPTEMBER 2026, EFFECTIVELY DOUBLING ANNUALISED STERILE PRODUCTION DAYS AVAILABLE TO THE BUSINESS • LINE 2 CURRENTLY SUPPORTS 500-LITRE BATCHES VS 200 LITRES ON LINE 1, WITH TECHNICAL CAPABILITY UP TO 750 LITRES, SUPPORTING HIGHER OUTPUT & LOWER UNIT COSTS • DR. REDDY'S SEMAGLUTIDE API SUPPLIES HAVE RESUMED, WITH ONESOURCE EXPECTING CANADIAN PRODUCT SUPPLIES TO RESTART IN Q3 FY27, FOLLOWED BY OTHER APPROVED MARKETS • MANAGEMENT EXPECTS STRONG SEMAGLUTIDE DEMAND ACROSS CANADA, INDIA & BRAZIL, WITH ADDITIONAL REGULATORY APPROVALS EXPECTED TO SUPPORT FUTURE COMMERCIAL VOLUMES • COMPANY SECURED SIX NEW PROJECT WINS DURING Q2 ACROSS BIOLOGICS, DDC & BASE BUSINESSES, INCLUDING TWO END-TO-END BIOLOGICS PROJECTS FROM A US BIOTECH CUSTOMER • MANAGEMENT EXPECTS COMMERCIAL BIOLOGICS REVENUE TO BEGIN CONTRIBUTING FROM FY29, WHILE DEVELOPMENT & MANUFACTURING SERVICE AGREEMENTS SUPPORT NEAR-TERM GROWTH • EXPANDED STERILE INJECTABLE & LYOPHILISATION CAPACITY IS EXPECTED TO BECOME AVAILABLE FROM JANUARY 2027, WHILE A NEW GREENFIELD SOFTGEL FACILITY IS BEING PLANNED • MANAGEMENT EXPECTS WORKING CAPITAL TO NORMALISE OVER THE NEXT 1–2 QUARTERS AFTER GEOPOLITICAL SHIPPING DISRUPTIONS EXTENDED CYCLE TIMES BY APPROXIMATELY 45–60 DAYS • MANAGEMENT REMAINS CONFIDENT IN FY28 TARGETS, BUT DDC LINE 3 COMMISSIONING DELAYS, SEMAGLUTIDE REGULATORY APPROVALS, CAPACITY UTILISATION, WORKING CAPITAL & EXECUTION RISKS REMAIN KEY MONITORABLES
ONESOURCE SPECL PHARMA L