Key Quantitative Figures

Financial Performance (Consolidated):

  • Revenue from operations: ₹3,325.99 million (7% growth YoY)
  • Profit before tax: ₹758.36 million (92% growth YoY)
  • Profit after tax: ₹574.84 million (99% growth YoY)
  • EBITDA: ₹1,056.51 million (53% growth YoY)
  • Earnings per share: ₹67.57 (₹61.24 standalone)
  • Net worth: ₹3,677.89 million
  • Total assets: ₹6,779.41 million
  • Trade receivables: ₹953.56 million net of allowance
  • Inventories: ₹725.33 million
  • Borrowings: ₹1,882.55 million

Financial Performance (Standalone):

  • Revenue from operations: ₹2,921.36 million (2% growth YoY)
  • Profit after tax: ₹521.00 million (64% growth YoY)

Dividend:

  • Recommended final dividend: ₹11 per equity share (110%)
  • Total dividend amount: ₹93.58 million
  • Dividend payout ratio: 18% of standalone profits
  • Payment date: On or after 28 July 2026

Segment Performance:

  • Poultry Healthcare Division: 24% growth to ₹2,060.79 million with 28.2% margin
  • Animal Healthcare Division: Declined to ₹818.32 million from ₹1,198.83 million with 20% margin
  • Geographical revenue: India ₹2,619.71 million, Outside India ₹706.28 million

Significant Events and Transactions

Subsidiary Divestment:

  • Divested 43.81% stake in Texas Lifesciences Private Limited, reducing holding from 54.81% to 11%
  • Transaction approved by Board on 11 March 2026, ceased to be subsidiary from 27 March 2026
  • Gain on sale of investment: ₹69.96 million (recognized as exceptional item)

Post Balance Sheet Event:

  • Gates Foundation executed loan amendment agreement with Hester Biosciences Africa Limited
  • Outstanding loan principal reduced from USD 12 million to USD 5 million
  • All accrued interest of USD 0.99 million waived
  • Future loan balances to carry no interest charges with extended repayment schedule

Product Launches and Regulatory Approvals:

  • Received marketing and manufacturing licenses for H9N2 Avian Influenza (low pathogenic) vaccine
  • Launched new products: Silvectant (disinfectant), Hestbac (probiotic), Hestflora (probiotic+prebiotic), AmmoStop (probiotic blend)
  • Launched animal healthcare products: ICEFT RTU, Inomilk Gel, Bovitone HQ10, Uderwise, Hestdrip formulations

Facility Updates:

  • Capitalized Fill-Finish facility enhancing manufacturing capabilities
  • Capitalized BSL-3 facility repurposed for veterinary use
  • Tanzania facility maintained consistent operations supporting African markets

Key Audit Matters

Auditors identified two key audit matters:

1. Carrying value of trade receivables (₹953.56 million, 14% of total assets) - Required significant management judgement in determining expected credit loss allowance

2. Valuation of inventories (₹725.33 million, 22% of revenue) - Complex procedures involving cost estimation, overhead application, and net realizable value determination

Financial Ratios and Capital Structure

  • Current ratio: 2.06 (FY25: 1.92)
  • Debt-equity ratio: 0.19 (standalone), 0.52 (consolidated)
  • Return on equity: 14.39% (FY25: 9.77%)
  • Net profit ratio: 17.83% (FY25: 11.12%)
  • Authorized share capital: ₹112 million
  • Paid-up equity share capital: ₹85.07 million (8,506,865 shares of ₹10 each)

Cash Flow Implications

  • Operating cash flow: ₹509.20 million (standalone), ₹641.41 million (consolidated)
  • Investing cash flow: ₹(23.61) million (standalone), ₹(28.69) million (consolidated)
  • Financing cash flow: ₹(483.14) million (standalone), ₹(487.94) million (consolidated)
  • Dividend paid: ₹60.26 million (standalone)

Corporate Governance and Board Composition

Board Composition:

  • Dr. Bhupendra Gandhi: Chairman
  • Mr. Rajiv Gandhi: CEO & Managing Director
  • Ms. Priya Gandhi: Executive Director
  • Mr. Sanjiv Gandhi: Director
  • Independent Directors: Ms. Sandhya Patel, Mr. Ashok Bhadakal, Mr. Ameet Desai, Mr. Anil Jain, Mr. Jatin Trivedi

Committee Structure:

  • Audit Committee: Mr. Ashok Bhadakal (Chairperson), Ms. Sandhya Patel, Ms. Priya Gandhi
  • Stakeholders' Grievances Committee: Ms. Sandhya Patel (Chairperson), Mr. Rajiv Gandhi, Ms. Priya Gandhi
  • Nomination & Remuneration Committee: Mr. Ashok Bhadakal (Chairperson), Ms. Sandhya Patel, Mr. Sanjiv Gandhi

Forward-Looking Guidance

Management Commentary Highlights:

  • Priority on strengthening biological portfolio across poultry and animal healthcare
  • Focus on commercializing H9N2 Avian Influenza vaccine
  • Increasing participation in commercial and export markets
  • Reducing dependence on institutional business
  • Advancing R&D initiatives across vaccines and animal health solutions
  • Strengthening international presence, particularly in Africa
  • Continuing focus on operational excellence and cost discipline