OneSource Specialty Pharma Ltd. (Latest Q4 FY2025 Result Research Report)

As of May 5, 2025

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1. Q4 FY2025 Results (Consolidated)

• Revenue from operations: ₹ 4,259.53 million (↑482% YoY from ₹ 731.43 million)
• Other income: ₹ 28.90 million
• Total income: ₹ 4,288.43 million
• Total expenses: ₹ 3,453.41 million
• Profit before tax: ₹ 875.02 million (approx.; 20.4% margin)
• Net profit after tax: ₹ 991.92 million vs. loss of ₹ 401.70 million last year

Comment: A strong swing to profitability in Q4, driven by ramp‑up in CDMO revenues and tight cost controls.

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2. Latest Results Highlights

1. Turnaround performance: From cumulative losses in prior quarters to PAT of ₹ 991.92 million.
2. High operating leverage: Fixed‑cost dilution delivered >20% net margin.
3. Cash flow improvement: Operating cash outflow of ₹ 472.83 million in standalone vs. heavy capex in prior year .
4. Balance sheet strength: Consolidated current assets exceed liabilities by only ₹ (273.82) million, reflecting working‑capital tightness .

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3. Key Metrics

Metric	Value
Market Cap	₹ 18,985 Cr.
Current Price	₹ 1,659
52‑wk High / Low	₹ 1,800 / ₹ 1,163
P/E (x)	232
Book Value	₹ 514
Dividend Yield	0.00 %
ROCE	5.39 %
ROE	2.60 %
Net Debt	₹ 942 Cr.
Reserves	₹ 5,869 Cr.
Promoter Holding	34.2 %
Pledged by Promoters	20.1 %
3‑yr Sales CAGR	124 %
3‑yr Profit CAGR	33 %
3‑yr Δ in Promoter Holding	–

Data per company disclosures and stock exchanges.

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4. Valuation & Dividend

• Rich valuation (P/E 232×): Reflects high-growth expectation in CDMO space, but leaves limited margin of safety.
• No dividend payout: Zero yield underlines reinvestment focus.

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5. CAPEX & Growth Strategy

• FY2025 standalone capex: ~₹ 863 million on plant & equipment .
• Major initiatives:
  1. Singapore consolidation: Scheme to merge Stelis Pte and Strides Softgel Pte into Onesource Pte to streamline CDMO footprint .
  2. Expansion of biologics and small‑molecule capacity in Bengaluru and Navi Mumbai.
  3. MSAs signed: Multiple Manufacturing Services Agreements poised to convert into long‑term commercial supplies .

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6. Long‑Term Projections & Returns

Horizon	Assumed Revenue CAGR	Implied Revenue (₹ Cr)	Implied Share Price (₹)¹	CAGR Return
5 years	20 %	3,294	2,500	~10 % p.a.
10 years	18 %	9,738	4,500	~9 % p.a.
15 years	15 %	22,916	7,500	~8 % p.a.
20 years	12 %	49,409	12,000	~7 % p.a.

¹ Valuation uplift to 50× forward EPS, conservative over time.

Take‑away: Even with rapid top‑line growth, multiyear returns moderate given high current valuation.

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7. Management Quality & Governance

• Board strength: Seasoned directors (including Trisha A. Bote – Company Secretary) and audit by Deloitte Haskins & Sells .
• Strategic clarity: Quick execution of NCLT‑approved scheme, zero debt on NCDs post‑redemption.
• Governance: No credit‑rating changes announced; debt fully redeemed in Nov 2024.

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8. Future Growth Plans & Expansions

• Diversified CDMO offerings: Move from small molecules to biologics fills a unique niche.
• Geographic reach: Consolidation in Singapore enables stronger FDA/EMA market access.
• R&D pipeline partnerships: Several late‑stage projects under confidentiality, potential upside.

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9. Conclusion

OneSource Specialty Pharma delivers a credible turnaround in Q4 FY2025, underpinned by its CDMO thrust and operational discipline. While growth prospects remain robust, the current valuation demands cautious entry. Investors should weigh near‑term momentum against multiyear returns at a stretched P/E.

Disclaimer: This report is for informational purposes only and does not constitute investment advice. Always conduct your own due diligence before making investment decisions.