OneSource Specialty Pharma Limited

Healthcare — Biotechnology · NSE

₹1,406.00−₹27.20 (−1.90%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by short-term liabilities exceed short-term assets, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:52 pm

Understanding the Business

Company site ↗

The 60-second version of OneSource Specialty Pharma Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

OneSource Specialty Pharma Limited, a biopharmaceutical company, engages in the research, development, manufacture, and commercialization of biological drug products in various injectable formats in India, Singapore, the United States, Spain, and internationally.

IndustryBiotechnology

SectorHealthcare

Employees1,674

Annual revenue₹1,422 Cr

How does it make money?

Turns over ₹1,422 Cr a year. Of every ₹100 of sales, about ₹-5 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 1,674 employees supports ₹84.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹84.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 0.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE32.0%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 56.1% and earnings to grow about 109.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+56.1%

Est. earnings growth+109.0%

Analysts4

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +3572% while net margin moved -100% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+3572%

Margin effect-100%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

48/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

25/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

57.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from -301.7% to 21.7% over 3 years.
Return on equity is rising
ROE has improved from -101.8% to -1.3%.
Return on capital is rising
ROCE has improved from -32.8% to 0.3%.
Very low debt
Debt/Equity of 0.26x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

7 items require attention · 5 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 74% over 3 years, from ₹864 Cr to ₹1,504 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 0.2x — little room if earnings dip.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴The company is lossmakingFinancial
Net profit of -₹74 Cr in the latest reported year.
🔴Receivables growing faster than salesFinancial
Receivables up 17959% against revenue up 3572% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 0.6x to 0.2x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.99 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -301.7% to 21.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 4.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 17959% against revenue up 3572%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
5 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 174% a year✓ 232.4% CAGR
Latest reported year was 37.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 21.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹561 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 0.2x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 3 neutral · 6 weak

Market Cap

₹16,123 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

2.77x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-4.25

Loss-making

Negative earnings per share — the business is losing money

ROE

-1.3%

Weak

Weak capital efficiency

ROCE

0.3%

Weak

Low return on total capital employed

Debt/Equity

0.26x

Low

Conservative leverage

Revenue Growth (YoY)

37.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-310.7%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹561 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

18.6x

Operating Margin

11.5%

Average

Average margins

Net Margin

-3.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.99

Adequate

Adequate, but no real cushion

52W Range Position

40%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1523.0 / 1539.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

21.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹39 Cr	₹172 Cr	₹1,445 Cr	₹1,422 Cr	+232.4%
EBITDA	-₹117 Cr	-₹64 Cr	₹471 Cr	₹308 Cr	—
EBITDA Margin	-301.7%	-37.1%	32.6%	21.7%	—
PAT (Net Profit)	-₹800 Cr	-₹391 Cr	-₹18 Cr	-₹74 Cr	—
EPS	₹-69.89	₹-34.18	₹-1.63	₹-6.44	—
ROE	-101.8%	-98.9%	-0.3%	-1.3%	—
ROCE	-32.8%	-41.3%	1.4%	0.3%	—
Total Debt	₹864 Cr	₹571 Cr	₹942 Cr	₹1,504 Cr	+20.3%
Free Cash Flow	-₹207 Cr	-₹171 Cr	-₹196 Cr	-₹561 Cr	—

🟢 Revenue has grown at 232.4% a year over 3 years.

🟢 EBITDA has turned positive, from -₹117 Cr to ₹308 Cr.

🟢 EBITDA Margin has risen from -301.7% to 21.7% over 3 years (+323.4 pts).

🟢 ROE has risen from -101.8% to -1.3% over 3 years (+100.6 pts).

🟢 ROCE has risen from -32.8% to 0.3% over 3 years (+33.1 pts).

🔴 Total Debt has grown at 20.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹8,210 Cr

Total Liabilities

₹2,379 Cr

Cash & Equivalents

₹36 Cr

Operating Cash Flow

₹9 Cr

Capex

-₹569 Cr

Shareholding (proxy)

Institutional Holding

33.3%

Insider Holding

35.5%

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹2,056

+46.2% vs CMP

Target Range

₹1,676 – ₹2,400

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

3 mixed1 negative2 general

OneSource Specialty Pharma (NSEI:ONESOURCE) Stock Forecast & Analyst Predictions

Simply Wall Street, 07 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

OneSource Specialty Pharma: NSE & BSE give green signal for merger scheme; here's details

Alice Blue, 26 SeptM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

OneSource Specialty Pharma Ltd Faces Bearish Momentum Amid Technical Downgrade

MarketsMojo, 15 OctAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

Onesource Specialty Pharma Share Price: Buy or Sell

Univest, 03 Sept

Buy Onesource Specialty Pharma; target of Rs 2400: ICICI Securities

Moneycontrol.com, 27 Jul

OneSource Pharma Mitigates Supply Risks as Expansion Supports $400M Revenue Goal

Sahi, 09 JulCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality

WeakFinancial Health · Profitability · Valuation · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 5 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑