Onesource Specialty Pharma shares tank 18% after semaglutide delay hurts Q3 performance

Shares of Onesource Specialty Pharma Ltd. plunged as much as 18% after the company reported a sharply weaker December quarter. The sell-off was triggered by a delay in semaglutide approval in Canada, which materially impacted revenues and profitability.

What went wrong this quarter

The delay in regulatory approval for semaglutide in Canada led to a sharp revenue shortfall. With lower topline, operating leverage deteriorated, while operating expenses rose on a year-on-year basis.

Margins were further pressured by the impact of the new Labour Code during the quarter.

	Q3FY26	Q2FY26	Q3FY25	QoQ	YoY
REVENUE	290.34	375.763	392.6	-23%	-26%
OPEX	273.018	269.268	250.7	1%	9%
EBITDA	17.322	106.495	141.9	-84%	-88%
MARGINS	6.0%	28.3%	36.1%	-79%	-83%
PROFIT	-88.699	10.485	-68.8	-946%	29%

Management commentary

Management described Q3 as a subdued quarter but maintained that underlying demand trends remain intact.

The order book continues to show an upward trajectory, while interest in the biologics segment is rising. The company has also onboarded another biosimilar player, reinforcing confidence in the platform.

Despite near-term challenges, management reiterated its confidence in long-term growth prospects.

FY28 guidance reiterated despite weak Q3

Despite the weak quarterly performance, the company reaffirmed its FY28 guidance. It expects organic revenue of ₹40,000 crore, which could rise to ₹50,000 crore including the proposed acquisition.

EBITDA margin guidance was maintained at 40%, while net debt to EBITDA is targeted to remain below 1.5x.

Key growth drivers going ahead

Management pointed to multiple structural growth drivers, including a global surge in GLP-1 demand as semaglutide loses patent protection in over 130 countries.

The shift towards end-to-end CDMO partnerships and the scaling up of the biologics platform are expected to support growth.

Over 70% of the business continues to come from existing customers, providing revenue visibility.