Onesource Specialty Pharma Ltd

Instruments and ratings

• Bank loan facilities, size 11,250.51 INR million; rating IND A/Positive/IND A1; long-term upgraded, short-term affirmed
• Bank loan facilities, size 4,287.08 INR million; rating IND A/Positive/IND A1; rating assigned

Agency and rationale

• Agency: India Ratings and Research (Ind-Ra)
• Upgrade reflects stronger business profile from DOC platform and GLP-1 supplies
• Shift from development-led to commercial supply-led revenue; improved revenue visibility
• Multiple launches, long-term supply agreements, capacity expansion; improved cash flows
• Consolidated OSPL with subsidiaries for rating assessment

Outlook and change history

• Outlook: Positive
• Long-term upgrade from IND A- to IND A; short-term rating affirmed

Financial Performance

• Revenue: INR 4,490 million, up 37% YoY.
• EBITDA: INR 1,233 million, up 39% YoY.
• Sequential EBITDA up 34% versus last quarter.
• FY28 guidance reaffirmed: USD 400 million organic revenue; 40% EBITDA margin.
• US$100 million capex first phase nearing completion.
• Second line to be commercialized this quarter.
• Capacities full; DRL supply disruption not impacting demand.
• As of June 26, 40% of India generic pens market manufactured at our site.
• 12 inspections this quarter; includes two surprise FDA audits.
• Biologics pipeline with Formycon; RFP funnel 4x year-ago level.

Capacity and Operations

• Canada semaglutide commercialization: three approvals; two partners launched.
• New GLP customer onboarded last quarter.
• Second line doubles sterile days; expands capacity for DRL and others.
• Third line installed this year; four lines by FY28.
• Soft-gel CDMO tech transfers underway; greenfield site planned for deeper capacity.
• Injectables: pre-filled syringes and lyophilization capacity expansion.
• One sterile site shutdown planned this year to add capacity.

Growth Engines

• Biologics pipeline: Formycon collaboration expands biosimilar access.
• End-to-end biologics: gene-to-patient, same-site fill-finish.
• Tirzepatide: first-to-file status in US achieved.
• Biologics and drug-device growth to drive long-term expansion.

Guidance and Outlook

• FY28 guidance reiterated: USD 400 million organic revenue; 40% EBITDA margin.
• Longer-term EBITDA trajectory higher; growth from biologics, injectables, soft gel.
• US$100m capex remains; ~80% committed; remaining 20% to be utilized.
• Europe and US markets to open from FY29-30; capacity expansion planned.
• Geopolitical/freight issues may affect timelines; CDMO model mitigates impact.

Risks and Watchpoints

• Diversified customer base mitigates DRL disruption risk; no near-term impact.
• Dr. Reddy's resumption timeline uncertain.
• Geopolitical tensions may cause freight delays; container shortages.

Appointment: Preeti Kalra as SMP

• Type/Designation: Appointment of Preeti Kalra as SMP.
• Effective date: July 24, 2026.
• Role: Head - Human Resources.
• Reason: appointment to SMP.
• Profile: 25+ years in Biopharma, not-for-profit, IT.
• Previous organizations: Stelis Biopharma, Biocon Biologics, Gates Foundation, Serco, EY.
• Expertise: leadership development, organizational transformation, change management.
• Relationship with other directors: Not Applicable.

Cessation: Ravi Kumar as SMP

• Type: Cessation as SMP due to resignation.
• Name/Designation: Ravi Kumar, Global Head – Injectables; Head of Corporate Strategy, Portfolio & SPO.
• Effective date: close of business hours July 24, 2026.
• Reason: personal reasons.
• Resignation letter submitted.
• Profile: Not applicable.
• No disclosed relationships with other directors.

Meeting Details

• Date and time: July 25, 2026, 10:00 IST.
• Type and mode: group earnings call; virtual.
• Event/organiser: earnings call by OneSource Specialty Pharma Ltd.
• Key participants: Company Secretary and Compliance Officer.
• Purpose: discuss unaudited results for quarter ended June 30, 2026.
• Availability: audio recording made available on the company website.

Appointment: Preeti Kalra as SMP

• Preeti Kalra appointed as SMP, Head - Human Resources, effective July 24, 2026.

Cessation: Ravi Kumar as SMP

• Ravi Kumar resigned as SMP, effective July 24, 2026.

Financial results approved

• Unaudited standalone financial results for quarter ended June 30, 2026 approved by Board.
• Unaudited consolidated financial results for quarter ended June 30, 2026 approved.

Auditor's review

• Deloitte Haskins & Sells stated no material misstatement in the results.
• Conclusion of the review not modified.

Subsidiaries and materiality notes

• Not reviewed: subsidiaries show revenues Rs 283.47m; net loss Rs 12.14m; OCI Rs 12.44m.
• Four subsidiaries' interim data not reviewed; management says not material to the Group.

Regulatory/compliance notes

• Statements prepared per LODR Regulation 33 and Ind AS 34; review also covered SEBI circular 33(8).

Meeting Details

• Meeting on July 24, 2026; time and location not disclosed.

Key Agenda Items

• Consider and approve unaudited standalone and consolidated results for quarter ended June 30, 2026.

Other Notes

• Trading window closure for designated persons from July 01, 2026, opens 48 hours after results dissemination.

Partnership overview

• Parties: OneSource Specialty Pharma Limited and Formycon AG.
• Announcement in Bengaluru, India on 14 July 2026.
• OneSource will be Formycon's strategic manufacturing partner, providing DS and DP manufacturing in Bangalore.
• The collaboration leverages OneSource's end-to-end biologics capabilities with Formycon's biosimilar development expertise.
• Five OneSource facilities approved by US FDA and EMA; supports global programs.
• Aims to deliver reliable, scalable, cost-efficient manufacturing for global biosimilar access.
• India positioned as a global hub for biologics development and manufacturing.
• No financial terms disclosed.

DRL delay clarification and capacity expansion

• Delay in Semaglutide supplies from DRL has no material impact on Onesource's operations.
• Demand remains from other customers including Canada; current capacities are fully committed.
• Significant new capacities will be added starting this quarter and later this year.
• Onesource will meet DRL demand as soon as DRL is ready.
• Company remains focused on growth plans, quality, reliability, and supply continuity.