OneSource Specialty Pharma Ltd Management Discussions

Company Profile

OneSource Specialty Pharma Limited (OneSource) is a pure-play specialty pharmaceutical Contract Development and Manufacturing Organisation (CDMO) providing integrated development and manufacturing solutions across complex pharmaceutical modalities. We partner with leading global pharmaceutical and biotechnology companies across the product lifecycle, from early-stage development through commercialisation and lifecycle management, leveraging deep scientific expertise, advanced manufacturing capabilities and a strong regulatory compliance framework.

We operate a differentiated, multi-modality CDMO platform spanning drug-device combinations (including GLP-1 therapies), biologics, sterile fill-finish and oral technologies (soft gelatin capsules). Our integrated capabilities span formulation development, analytical services, drug substance and drug product manufacturing, device integration, sterile manufacturing, helping customers accelerate development, streamline commercialisation, and scale seamlessly to commercial production. We operate five state-of-the-art facilities in Bengaluru, India, with regulatory approvals from leading global authorities including the US FDA, EMA, MHRA, Health Canada, TGA, WHO GMP, and ANVISA, supported by a workforce of 1,600+ professionals. Our diversified customer base spans innovator pharmaceutical companies, global generics manufacturers, and biotechnology firms across regulated and international markets. With an integrated, science-led CDMO platform and specialised technological capabilities, we are well-positioned to address the evolving requirements of the global pharmaceutical industry.

Global Economic Review

According to the International Monetary Funds (IMF) World Economic Outlook released in April 2026, the global economy is going through a fragile and uneven recovery, growing more slowly than its long-term average as it deals with a more uncertain environment. Global growth is projected at 3.1% in 2026 before improving marginally to 3.2% in 2027, reflecting geopolitical tensions, evolving trade policies, tighter financial conditions, and slowing momentum across several major economies. While economic activity remains positive, growth is expected to remain below

Global Growth Forecast (%) historical averages, highlighting the challenges associated with an increasingly complex global landscape.

Growth is increasingly uneven across countries. Advanced economies are expected to slow gradually, as the delayed effects of higher interest rates continue to weigh on spending, investment and industrial output. Higher borrowing costs, fiscal pressures, and weaker productivity are expected to hold back growth across several developed markets. Emerging and developing economies remain a key driver of global growth, expanding at 3.9% in 2026 and 4.2% in 2027 according to the IMF, supported by favourable demographics, urbanisation, infrastructure investment, and rising domestic spending. Asia remains a key growth engine whereas several emerging markets are benefiting as supply chains diversify and companies invest in new industrial capacity. However, the growth is uneven and dependent on external financing conditions, currency movements, commodity prices, and varying levels of exposure to global demand.

The conflict in the Middle East, which began in late February 2026 and led to the closure of the Strait of Hormuz and damage to major oil production facilities, has been a key factor behind this years global growth outlook, driving up oil and commodity prices, raising transportation costs, and creating risks to global supply chains. The size of the shock to the global economy will depend on how long the conflict lasts, how widely it spreads, and how quickly energy production and transit can return to normal once hostilities end.

At the same time, global trade is being reshaped by rising protectionism and strategic economic competition. Recent US tariff measures, and the risk of further trade restrictions, are pushing companies to reassess where they source, manufacture and ship from, accelerating a shift toward regional supply chains and new manufacturing hubs in emerging markets.

Global inflation, while significantly lower than recent peaks, remains susceptible to commodity price fluctuations and geopolitical developments. The IMF projects global inflation at 4.4% in 2026, easing to 3.7% in 2027. As a result, monetary policy is expected to stay relatively tight, keeping financing costs high and pushing businesses to prioritise capital efficiency, operational flexibility, and disciplined investment.

Despite these near-term headwinds, the global economy continues to benefit from long-term shifts in technology, infrastructure, and industrial investment. Faster adoption of digital tools, automation, artificial intelligence and cleaner energy are changing business models and investment priorities, while the reshaping of global supply chains is creating new opportunities in manufacturing and trade.

Outlook

The global economy is expected to grow at a moderate pace over the medium term. In this volatile environment, organisations are expected to keep adjusting how they operate to be more resilient, diversified, and efficient. Supply chain security, regional manufacturing, strong partnerships, and the ability to adapt quickly are becoming increasingly important to staying competitive. Businesses that can navigate geopolitical complexities, adapt to changing trade patterns, and execute with discipline are expected to be better placed to capitalise on emerging opportunities.

Indian Economy

Real GDP is estimated to grow to 7.6% in FY26, keeping India among the fastest-growing major economies in the world, even as geopolitical tensions, trade disruptions and changing tariff rules made for a tougher global environment. Consumer spending continued to be the primary growth driver, supported by higher incomes, urbanisation, and improving employment trends. Inflation stayed largely within the Reserve Bank of Indias target range. To support growth, the RBI continued its monetary easing cycle, lowering the repo rate to 5.5% in October 2025 and then to 5.25% in December 2025. As of February 2026, the RBI maintained the repo rate at 5.25% while retaining a neutral policy stance amid ongoing global uncertainty.

Source: Government of India, Ministry of Statistics & Programme Implementation (MoSPI) *Note: GDP growth rates have been restated based on MoSPIs revised GDP series (Base Year: FY23), released in February 2026. Accordingly, historical figures may differ from those presented in the previous years Annual Report.

In addition to strong domestic consumption, investment activity and government capital expenditure continued to support economic growth. Ongoing investments in infrastructure, manufacturing and logistics contributed to capacity creation, while policy initiatives aimed at strengthening domestic manufacturing supported industrial activity. A large domestic market, continued infrastructure development, and ongoing structural reforms also contributed to economic growth and strengthened economic resilience.

Outlook

Indias economic outlook remains supported by resilient domestic demand, ongoing infrastructure development, and continued growth in the services sector. While geopolitical developments, trade-related uncertainties, and global macroeconomic conditions may pose challenges, the domestic economy is expected to remain supported by investment activity, policy initiatives, and infrastructure spending. Further, efforts to strengthen manufacturing capabilities, enhance supply chain resilience, and expand trade partnerships are expected to support Indias medium to long-term growth prospects.

Global Pharmaceutical Market Overview

The global pharmaceutical market continues to expand, driven by rising healthcare expenditure, increasing medicine usage, new innovative therapies, and improving healthcare access across both developed and emerging economies. According to IQVIA, global medicine spending is expected to exceed $2.6 trillion by 2030, growing at a forecast CAGR of 5% to 8%. At the same time, the industry is operating in an uncertain environment marked by tariff-related risks and increasing emphasis on healthcare security. These trends are pushing pharmaceutical companies to strengthen their supply chains, diversify manufacturing networks, and build more flexibility into their global operations.

Global Medicine Spending Outlook

Source: IQVIA Market Prognosis, Sep 2025; IQVIA Institute, Dec 2025.

Notes: Global medicine spending is based on IQVIA Market Prognosis with the addition of estimates of COVID vaccine and therapeutic spending which are not otherwise included. Those COVID additions are informed by company financials and published prices and vaccination rates.

Report: Global Medicine Use Trends 2026: Therapy Drivers, Spending Levels, and Policy Evolution. IQVIA Institute for Human Data Science, February 2026.

Global medicine spending is expected to witness slow growth over the next five years in absolute terms. Most of this growth is expected to come from the US, a small group of other high-income, high-growth developed countries, and a set of faster-growing, lower-income countries known as pharmerging markets, with a handful of these countries accounting for the bulk of the increase. In developed markets, growth continues to be driven mainly by the fast adoption of new drugs, most of which reach these markets within a year of launch, while growth across pharmerging markets is being driven by improving healthcare access, rising incomes and wider treatment adoption. Rising disease rates, an ageing population and greater healthcare access more broadly are expected to keep demand strong for both essential and specialty medicines across markets.

Global Historic and Forecast Growth for Top 20 Therapy Areas, constant $, 2021–2030

Source: IQVIA Market Prognosis, September 2025; IQVIA Institute, December 2025

Bubble size represents forecast in 2029; COVID-19 vaccines and therapeutics are not included. Analysis is based on disease attribution of sales by diagnoses. Proprotein Convertase Subtilisin/ Kexin type 9 (PCSK9), a protein that regulates cholesterol by controlling LDL (bad) cholesterol receptors in the liver, and marketed drugs include antibody drugs for PCSK9 and small interfering RNA (siRNA) therapies.

Report: Global Medicine Use Trends 2026: Therapy Drivers, Spending Levels, and Policy Evolution. IQVIA Institute for Human Data Science, February 2026.

Industry growth is becoming increasingly concentrated in a few high-impact therapy areas. According to IQVIA, oncology, immunology, and diabetes accounted for 43% of global pharmaceutical value in 2025, up 11% since 2019. Oncology remained the largest contributor to growth, supported by continued innovation and a robust pipeline of new therapies. Immunology also continued to be a key growth area, driven by the rising prevalence of autoimmune and inflammatory diseases and sustained adoption of biologic therapies. Within this landscape, obesity emerged as one of the fastest-growing therapy areas globally, supported by the rapid adoption of GLP-1 therapies. Growing demand for obesity and metabolic disorder treatments continues to support the expansion of the GLP-1 therapy market. Innovation in both oral and injectable therapies, together with a broad development pipeline, is contributing to market growth. Additionally, the expiry of patents for leading GLP-1 therapies such as semaglutide is increasing affordability and access, particularly in price-sensitive markets, supporting broader patient adoption and market expansion.

These market developments are also reshaping the pharmaceutical value chain. Higher treatment volumes are driving demand for peptide manufacturing, injectable drug delivery systems, and sterile manufacturing capabilities. Furthermore, the entry of off-patent products and continued product innovation are expected to support broader market penetration and create additional opportunities across the pharmaceutical ecosystem.

CDMO Industry

Contract Development and Manufacturing Organisations (CDMOs) have become a critical part of the global pharmaceutical ecosystem, as pharmaceutical and biotechnology companies increasingly engage specialised partners for development and manufacturing. This shift has been driven in large part by the growth of biologics, which increasingly rely on specialised manufacturing capabilities that many pharmaceutical players companies do not have in-house. Companies are partnering with CDMOs not just to manage overflow capacity, but increasingly as long-term strategic partners embedded in their development and commercial programmes, helping optimise costs, accelerate development timelines, and access specialised capabilities without significant capital investment of their own.

The scope of CDMO services has expanded well beyond traditional manufacturing to cover the full pharmaceutical value chain, including formulation development, analytical testing, clinical supply management, and commercial-scale production. As companies look for greater efficiency, scale and speed-to-market, demand for partners who can support the entire journey from development through commercial supply continues to grow.

Evolving CDMO Landscape

The global CDMO industry is entering a new phase of sustained growth, driven by increasing demand for development and manufacturing services, growing drug complexity, and a broader shift by pharmaceutical and biotechnology companies toward more diversified and resilient supply chains.

Much of this growth reflects a broader shift in the kind of manufacturing pharmaceutical companies need. While small molecule manufacturing continues to account for the majority of CDMO demand and remains a stable base for the industry, growth is increasingly coming from biologics and other complex modalities, including peptides, antibody-drug conjugates, and cell and gene therapies, among others.

These therapies demand advanced technical expertise and infrastructure that few companies choose to build internally, encouraging greater reliance on CDMO partners. Biologics-focused CDMOs have become a core part of the pharmaceutical industry, providing end-to-end support from early-stage development through to commercial-scale manufacturing, and are increasingly seen as strategic partners in the biologics sector.

Alongside this shift, rising global demand for GLP-1 and other weight-loss therapies is driving strong investment into CDMO capacity built specifically to support this category, from peptide manufacturing to the devices used to deliver these drugs, such as pens and auto-injectors. This has made GLP-1s one of the industrys most significant near-term growth drivers, with pharmaceutical companies increasingly relying on CDMO partners that can scale production quickly to keep up with demand.

Outlook

The CDMO industry is expected to maintain strong growth momentum, supported by pharmaceutical innovation, increasing adoption of integrated development and manufacturing partnerships and rising demand for complex therapies such as biologics, drug-device combination products and specialty injectables. Pharmaceutical companies are increasingly looking for providers with specialised expertise, strong manufacturing and regulatory capabilities, and the ability to support them from development through to commercial supply.

CDMO Market Growth Drivers

Pharmaceutical Innovation and Pipeline Growth

Continued advancements in biotechnology and targeted therapies are driving growth in pharmaceutical development pipelines worldwide. Increased research activity across biologics, rare diseases, and specialty therapies is supporting demand for outsourced development and manufacturing services. As pharmaceutical and biotechnology companies seek to accelerate innovation while optimising resources, CDMOs continue to play an important role in supporting product development and commercialisation.

Expansion of Complex Therapeutics

The growing adoption of biologics, peptides, antibody-drug conjugates (ADCs), specialty injectables, and drug-device combination products is reshaping the pharmaceutical landscape. These therapies require specialised manufacturing technologies, advanced process development capabilities, and stringent regulatory oversight, increasing reliance on external development and manufacturing partners. The continued growth of GLP-1 therapies is further supporting demand across sterile fill-finish operations and drug-delivery systems.

Supply Chain Diversification and Resilience

Global pharmaceutical supply chains are evolving as companies seek to mitigate geopolitical risks, strengthen business continuity, and reduce supply concentration. Changing trade dynamics, localisation initiatives, and emerging policy measures such as the proposed US BIOSECURE Act are encouraging companies to diversify manufacturing and sourcing strategies. These trends are creating opportunities for CDMOs with scalable infrastructure, strong quality systems, and a track record of reliable execution.

Shift Towards Integrated CDMO Partnerships

The industry is increasingly moving beyond traditional outsourcing arrangements toward integrated partnerships spanning development, manufacturing, and commercialisation. Pharmaceutical companies are consolidating supplier networks and partnering with service providers capable of offering end-to-end solutions. This trend is supporting the growth of integrated CDMO models by improving coordination, reducing development timelines, and enhancing operational efficiency.

Speed-to-Market and Manufacturing Readiness

In an increasingly competitive pharmaceutical environment, speed-to-market has become an important strategic priority. Pharmaceutical companies are seeking partners that can accelerate development timelines, facilitate technology transfer, and support rapid commercial scale-up. At the same time, digital technologies and automation are improving manufacturing efficiency, quality management, and supply chain planning through enhanced process monitoring and data-driven decision-making. Customers are also placing greater emphasis on manufacturing readiness, favouring partners with established facilities, proven regulatory compliance, and strong technical capabilities that can support efficient execution and timely product launches.

Our Business Segments

Drug-Device Combination (including GLP-1s)

The DDC segment is emerging as one of the fastest-growing areas within the pharmaceutical industry, with the global CDMO market for DDCs, including GLP-1 therapies, expected to grow at a CAGR of over 20%. Pharmaceutical companies are increasingly adopting delivery formats such as autoinjectors, cartridge-based platforms to improve patient convenience, treatment adherence, and product differentiation. This trend is driving demand for specialised formulation development, device integration, sterile fill-finish, and commercial manufacturing capabilities.A key growth driver has been the rapid expansion of GLP-1 therapies for obesity and metabolic disorders, which has accelerated investments across the broader delivery ecosystem, including peptide manufacturing, sterile fill-finish operations, cartridge manufacturing, and device assembly. Beyond GLP-1 therapies, the increasing adoption of injectable biologics and other specialty therapies is also supporting demand for advanced drug-device combination products and specialised manufacturing capabilities. Increasing adoption of injectable therapies is further reinforcing the need for high-quality manufacturing infrastructure, supply reliability, and execution readiness.

The segment is further supported by patent expiries of certain leading therapies, growing patient access, and continued innovation in drug-delivery technologies. As products become more complex, pharmaceutical companies are increasingly seeking partners capable of providing integrated solutions across development, device integration, manufacturing and commercialisation, creating attractive long-term opportunities for specialised CDMOs.

$12Market size

billion

Expected by 2028

>20% Expected CAGR

Shift towards self-administration, GLP-1s, Biosimilars, integrated drug-device solutions

Source: Industry research

Our Perspective

We are strategically positioned to capitalise on the growing opportunities across DDC products, including GLP-1 therapies, injectable biologics, and other advanced injectable formats, through our integrated development and manufacturing platform. We have established an early-mover position in generic GLP-1s, securing the first three generic semaglutide approvals across G7 markets, including two approvals in Canada and one in the US through our partner network, while also enabling Day 1 launches in India through multiple commercial partners. Multiple Tirzepatide NCE-1 filings have further strengthened our participation in the next wave of obesity and metabolic therapies. Leveraging 12 device platforms and over 50 DDC projects, we continue to expand our CDMO capabilities for complex programmes. Supported by our announced capacity expansion plan, we are well positioned to address growing global demand for advanced injectable therapies across markets.

Biologics (Drug Substance and Drug Product)

Biologics continue to be one of the fastest-growing segments within the pharmaceutical industry, with the biologics CDMO market for drug substance (DS) and drug product (DP) expected to grow at a CAGR of around 14% over the medium term. Growth is being driven by increasing investment in biologics research and development, rising adoption across a broad range of therapeutic areas, and continued demand from pharmaceutical and biotechnology companies for specialised development and manufacturing capabilities. The market continues to benefit from a strong innovation pipeline and growing biosimilar adoption. As several leading biologics lose patent exclusivity, biosimilar development activity is accelerating, supported by favourable regulatory pathways, increasing healthcare cost pressures, and efforts to expand patient access. At the same time, the biologics pipeline remains robust, encompassing monoclonal antibodies, recombinant proteins, cell and gene therapies, and other emerging modalities. India is also emerging as a key hub for biologics development and manufacturing, supported by a skilled talent pool, cost competitiveness, and expanding industry capabilities. The increasing complexity of these products, together with the need for specialised development and manufacturing expertise, is driving continued demand for CDMO services across the biologics value chain.

As a result, CDMOs with capabilities spanning biologics development, process optimisation, analytical services, and commercial-scale manufacturing are well positioned to benefit from growing demand. Pharmaceutical and biotechnology companies are increasingly seeking partners with integrated capabilities, technical expertise and proven quality systems to support the development and commercialisation of complex biologic therapies.

Market size

$38 billion

Expected by 2028

Expected CAGR

~14%

Increase in R&D spending, easing regulatory pathways, new therapeutic modalities

Source: Industry research

Our Perspective

We are strengthening our position in the biologics through our integrated Drug substance (DS) and Drug product (DP) platform, supported by capabilities across both microbial and mammalian systems. During the year, we expanded our customer base across biosimilar and animal health programmes, while strengthening our development pipeline through strategic partnerships and growing commercial momentum. Increasing biosimilar adoption, favourable regulatory developments, and upcoming patent expiries are driving customer interest and expanding opportunities for CDMO partners across the value chain. Backed by our integrated development and manufacturing capabilities, growing customer engagement, and ongoing investments in technical expertise, we are well positioned to support customers across development and commercial manufacturing requirements while continuing to scale biologics as a key long-term growth pillar.

Softgel Capsules 1

The softgel capsules segment continues to demonstrate steady growth, with the global softgel capsules market expected to grow at a CAGR of around 9% over the medium term. Growth is being supported by supply constraints in pharmaceutical-grade softgels, high technical skill requirements, and specialised manufacturing capabilities, and increasing demand for CDMO services. Continued product innovation and lifecycle extension opportunities are also supporting demand for specialised softgel manufacturing.

Demand is further driven by the growing preference for patient-friendly dosage forms and increasing use of softgel technologies across specialty pharmaceutical products. Softgels offer advantages in terms of stability, ease of administration, and formulation flexibility, making them well suited for a range of complex pharmaceutical applications. These attributes continue to support their adoption across multiple therapeutic categories and specialty formulations. As pharmaceutical companies increasingly seek specialised manufacturing partners, demand for CDMOs with established technical expertise, scalable manufacturing capabilities, and a strong track record of execution is expected to remain robust. The segment continues to offer long-term opportunities driven by outsourcing trends, product innovation, and the growing adoption of specialised drug delivery formats.

$18Market size

billion

Expected by 2028

Expected CAGR

~9%

Supply constraints, growing demand for external specialised manufacturing capabilities

1. Pharmaceutical

Source: Industry research

Our Perspective

We are strengthening our Softgel business through a focused CDMO-led strategy as we continue to expand beyond captive IP-driven demand. Our priorities include broadening the customer base, expanding our product pipeline, and deepening relationships with existing customers. We are also focused on increasing our participation in the broader CDMO market by leveraging our manufacturing expertise, established quality systems, and execution track record. These initiatives are aimed at strengthening our market position and supporting the long-term growth of the business.

Sterile Fill-Finish (Excluding DDCs)

The sterile fill-finish segment remains a critical component of the pharmaceutical value chain, with the global sterile fill-finish CDMO market expected to grow at a CAGR of around 5% over the medium term. Growth is being supported by the continued loss of exclusivity (LOE), ageing manufacturing infrastructure across mature markets and continued focus on cost optimisation.

Demand is further supported by expanding injectable drug pipelines, lifecycle management requirements for existing therapies, and the growing adoption of pre-filled syringes, vials, and other injectable formats. Pharmaceutical companies continue to rely on CDMOs for specialised infrastructure, technical expertise, and robust quality systems, supporting product launches and supply chain reliability. These trends are expected to support long-term growth opportunities across the sterile fill-finish market.

$13Market size

billion

Expected by 2028

Expected CAGR

~5%

LOEs. ageing facilities, cost optimisation

Source: Industry research

Our Perspective

We continue to strengthen our sterile fill-finish platform through targeted investments in capacity expansion and capability enhancement. We are currently progressing initiatives to broaden our capabilities across high-value sterile formats, including lyophilised products and high-viscosity formulations, enabling us to address a broader range of customer requirements across injectable therapies. These additions expand our addressable market and strengthen our ability to support increasingly complex products. Backed by our manufacturing expertise, regulatory track record, and established quality systems, we remain focused on strengthening our position in the sterile fill-finish CDMO market and supporting the long-term growth of the business.

Operational Performance in FY26

FY26 marked a year of continued capability building and commercial progress, strengthening the foundation for sustainable long-term growth across our specialty platforms. Commercial momentum remained strong across service offerings supported by a growing commercial pipeline and expanding engagement with existing customers. The year witnessed significant progress across our key growth platforms. We strengthened our position in GLP-1s by securing the first three generic semaglutide approvals in G7 markets, two approvals in Canada and one in the US through our partners, while enabling multiple Day-1 launches in India across a diversified customer base. We also completed multiple Tirzepatide NCE-1 filings for our customers, further expanding our participation in the obesity and metabolic therapies segment. Our biologics business continued to gain momentum, with the opportunity funnel expanding nearly 4x over FY25, supported by the addition of a European biosimilar partner, a major US biosimilar customer and a second project from a leading global animal health company. Across our injectables and softgel businesses, we signed multiple licensing and CDMO agreements, launched new products and further expanded our customer base and specialty product portfolio.

We continued to invest in manufacturing infrastructure, talent and operational capabilities to support future growth. Capacity expansion programmes remained on track, supporting our preparedness for future commercial opportunities. During the year, we successfully completed 49 regulatory inspections and customer audits, including USFDA and EMA inspections, reinforcing our commitment to quality and compliance. Supported by a growing commercial pipeline, expanding biologics opportunities and continued progress across complex modalities, we remain well positioned to support the next phase of growth across our integrated CDMO platform.

Financial Highlights (Consolidated) ( million)

Particulars	FY26	FY25	YoY
Revenue	14,216	14,449	(2%)
EBITDA	3,042	4,665	(35%)
EBITDA Margin (%)	21%	32%	(1,089 bps)
Adjusted PAT	739	2,314	(68%)
Adjusted EPS ()	6.5	21	(69%)

Particulars	FY26	FY25
Capital employed ( million)	16,940	14,666
ROCE (%)	9.6%	22.9%
Fixed asset turnover* (x)	1.8	1.9
Net Debt/EBITDA (x)	2.5	1.0

* Excluding intangibles

Notes:

1. Adjusted PAT excludes exceptional and one-time scheme-related expenses

2. Adjusted EPS excludes exceptional items, amortisation and discontinued operations

3. Goodwill and Scheme Intangibles arising from the business combination is excluded from the ROCE calculation as it is not reflective of operating performance in the absence of common control. Capital employed excludes new capital investment in progress.

The details of significant changes (25% or more) of the Company (Consolidated) are given as below:

Particulars	FY26	FY25	Change	Remarks
Debtors Turnover Ratio (x)	2.4	5.5	(55%)	Increased due to strategic support extended to key customers, reinforcing long-term partnerships
Inventory Turnover Ratio (x)	1.5	5.1	(71%)	Inventory build-up on account of Semaglutide launches
Current Ratio 1 _(x)	2.0	1.6	21%	Driven by movements in trade receivables and inventories
Debt-Equity Ratio 2 _(x)	0.6	0.4	69%	Increased borrowings to support DDC capacity expansion
Interest Coverage Ratio 3 _(x) Operating Profit Margin (%)	1.6 21.4%	2.3 32.3%	(29%) (34%)	Strong prior-year MSA base and higher operating costs to support DDC facility ramp-up
Net Profit Margin 4 _(%)	5.1%	15.8%	(67%)	in FY26
Return on Net Worth 4 _(%)	3.7%	11.3%	(67%)

Notes:

1. Adjusted for Financial Assets (excluding receivables) and Financial Liabilities 2. Adjusted for Goodwill and Lease liabilities 3. EBIT excludes scheme related amortisation expense 4. Adjusted for exceptional and one-time scheme-related expenses

People at OneSource

As we continue to expand our presence across biologics, GLP-1s, drug-device combinations, sterile injectables and other complex pharmaceutical segments, our people remain central to building differentiated capabilities and delivering operational excellence. Our workforce combines scientific, technical, quality and manufacturing expertise, enabling us to support increasingly complex development and commercial manufacturing programmes across global markets.

During the year, we further strengthened our talent base across research and development, quality, regulatory affairs, manufacturing, and commercial functions to support the growth of our integrated CDMO platform. We added more than 500 professionals during the year, taking our total workforce to over 1,600 employees. This expansion strengthened our capabilities across development, manufacturing and commercial operations, enabling us to support growing customer requirements while maintaining high standards of quality, compliance, and execution. We continue to invest in technical training, capability development, and cross-functional learning to build the specialised skills required in a highly regulated industry. Our people practices emphasise continuous learning, performance excellence, and adherence to global quality and compliance standards, enabling employees to grow alongside the evolving needs of the business and our customers. Supported by a culture of accountability, collaboration and continuous improvement, we are strengthening leadership capability, technical expertise and cross-functional execution across the organisation. As the pharmaceutical industry becomes increasingly specialised, the expertise, agility, and commitment of our people continue to be a key competitive advantage and an important enabler of long-term growth.

For more details, refer to the Human Capital section on page 84 of this report.

Risk Management

We follow a structured and integrated approach to risk management, designed to anticipate, assess and mitigate risks in a timely and effective manner. In an increasingly dynamic global environment characterised by evolving regulatory requirements, supply chain complexities, geopolitical developments, and market uncertainties, proactive risk management remains fundamental to sustaining our growth, operational resilience, and long-term value creation.

Our risk management framework enables the continuous identification, assessment and monitoring of strategic, operational, financial and compliance risks, ensuring appropriate mitigation measures are embedded across the organisation. We regularly evaluate both existing and emerging risks, strengthen internal controls and governance mechanisms, and implement targeted action plans to safeguard business continuity, protect stakeholder interests and support the consistent execution of our strategic priorities.

For more details, refer to the Risk Management section on page 116 of this report.

Internal Audit Systems and Their Adequacy

We maintain a robust internal control framework tailored to the scope and complexity of our operations. Detailed policies and procedures cover financial, operational, and compliance domains, ensuring disciplined execution and responsibility. Supported by capable professionals and a continuous internal audit programme, we regularly assess control adequacy and suggest process, policy, accounting, and regulatory enhancements. Internal Auditors work closely with Senior Management to keep our controls dynamic and adaptable. The Audit Committee further enhances oversight by reviewing audit findings and ensuring improvements are implemented.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, or predictions may be considered forward-looking statements under applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors, including economic conditions, demand-supply dynamics, changes in government regulations, tax laws, and other external or internal factors that may impact the Companys performance.