OneSource Specialty Pharma Ltd Q2 FY27 Results Analysis: PAT Surges 448%, Cash Flow Turns Negative
OneSource Specialty Pharma Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 516.24 Cr (+37.39% YoY) and PAT growth of +448.25% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 27, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 516.24 Cr (+37.39% YoY) |
| PAT (Q2) | Rs. 57.48 Cr (+448.25% YoY) |
| EBITDA margin | 31.63% (+329 bps YoY) |
| EPS (Q2) | Rs. 5.01 (+444.57% YoY) |
| Market cap | Rs. 18,117.91 Cr |
| CMP | Rs. 1,579.95 |
Quarter Snapshot
Q2FY27 delivered 37.39% YoY revenue growth with EBITDA margin expanding 416 bps QoQ to 31.63% despite the planned injectables-site shutdown, and PAT up 448% YoY. The offset is balance-sheet strain: H1 operating cash flow was negative at Rs.-19.22 Cr on a Rs.342.69 Cr receivables build, with growth funded by borrowings. No FY27 guidance exists to benchmark against; FY28 targets (US$400 Mn revenue, ~40% margin, <1.5x leverage) remain directionally on track on P&L momentum but the deleveraging leg is the stretch.
Key Investment Insights
Key Positives
- Revenue grew 37.39% YoY and 14.97% QoQ to Rs.516.24 Cr, the second consecutive quarter of ~37% YoY growth
- EBITDA margin expanded 416 bps QoQ and 329 bps YoY to 31.63%, above the Q1FY27 peak of 27.47%, despite the sterile-injectables site shutdown slated for Q2-Q3 FY27
- Reported PAT grew 448.25% YoY to Rs.57.48 Cr; H1 PAT grew 700.86% YoY to Rs.82.48 Cr
- PBT rose to Rs.52.87 Cr from Rs.5.74 Cr in the year-ago quarter
- Every scalable cost line (employee, finance, D&A, other expenses) declined 100-400 bps as % of revenue YoY
- Leverage proxy (net debt/LTM EBITDA) improved to 3.66x from 3.87x at March as EBITDA grew faster than debt
- H1 capex of Rs.171.24 Cr was down from Rs.328.71 Cr in H1FY26
Risk Factors
- H1FY27 operating cash flow was negative at Rs.-19.22 Cr (CFO/PAT -0.23x) with FCF of Rs.-190.47 Cr; growth is being financed by borrowings
- Trade receivables rose Rs.342.69 Cr (~+50%) in six months, outpacing revenue growth
- Gross borrowings rose Rs.207.33 Cr to Rs.1,483.63 Cr; net debt/EBITDA proxy of 3.66x remains far above the FY28 <1.5x target
- Prestige/Sputnik arbitration claim of USD 136.32 Mn (Rs.13,083.99 Mn) pending at SIAC with recurring legal charges (Rs.6.07 Cr in H1FY27)
- Subsidiaries were a -Rs.28.71 Cr drag on consolidated PAT, sticky at Rs.26-29 Cr for three quarters
- Negative effective tax rate (-8.74%) from deferred tax credits means PAT overstates pre-tax economics; cash taxes near-nil
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.