India Ratings and Research upgrades LT rating of Onesource Specialty Pharma to 'A'

The rating on the short-term facilities has been reaffirmed at ?IND A1?.

India Ratings and Research said that the upgrade reflects the strengthening of OSPL's business profile, following the successful commercialisation of its drug device combination (DOC) platform and increasing contribution from commercial glucagon-like peptide-1 (GLP-1) supplies.

India Ratings believes the company has transitioned from a predominantly development-led revenue model to an increasingly commercial supply-led model, supported by multiple customer launches, long-term supply agreements, and capacity expansion.

The demonstrated conversion of development projects into commercial supplies and the ramp-up of commercial revenue have improved its revenue visibility, strengthened customer stickiness, and reduced execution risk.

The ratings continue to benefit from OSPL's diversified contract development and manufacturing organisation (CDMO) platform across DDCs, biologics, sterile injectables and softgels; an established presence in regulated markets; and integrated manufacturing capabilities.

The agency has observed a significant improvement in the company?s scale of EBITDA during 4Q FY26 - 1Q FY27, led by the genericisation of GLP-1 portfolio in various markets.

India Ratings expects increasing utilisation of expanded capacities, growing CSA revenues, and improving operating leverage to support stronger profitability, cash flow generation and gradual deleveraging over the medium term.

Onesource Specialty Pharma is a fully integrated, multi-modality specialty pharmaceutical CDMO company, focused on developing and manufacturing drug-device combinations (DDCs), biologics, sterile injectables and oral technologies like soft gelatin capsules for its customers out of five globally compliant facilities located in Bengaluru.

The scrip shed 0.32% to currently trade at Rs 1546.95 on the BSE.

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