Standalone Financial Performance

Revenues:

  • Total Revenue from Operations for Q1 FY27 stood at INR 726.60 million, a 14% increase from INR 634.90 million in Q1 FY26.
  • Poultry Healthcare Division revenue was INR 617.69 million, a 48% increase from INR 416.52 million in the year-ago quarter. Growth was driven by higher institutional business, deeper market penetration, and traction in new health products like feed supplements and disinfectants launched in FY26.
  • Animal Healthcare Division revenue was INR 108.44 million, a 50% decrease from INR 218.22 million in Q1 FY26. This was attributed to timing delays in government-led immunisation programme tenders.
  • Other Operating Income was INR 0.47 million, up 194% from INR 0.16 million.

Profitability Analysis:

  • Gross Profit Margin improved to 78% in Q1 FY27 from 69% in Q1 FY26, a 900 basis point expansion, supported by a favourable product mix and operational efficiencies.
  • EBITDA increased by 95% to INR 260.34 million in Q1 FY27 from INR 133.57 million in Q1 FY26. The EBITDA margin was 36%.
  • Profit After Tax (PAT) increased by 88% to INR 147.11 million in Q1 FY27 from INR 78.38 million in Q1 FY26. The PAT margin was 20%, up from 12%.
  • Earnings Per Share (EPS) (not annualised) was INR 17.29, up 88% from INR 9.21 in the year-ago quarter.

Consolidated Financial Performance

Revenues:

  • Consolidated Revenue from Operations for Q1 FY27 was INR 772.44 million, an 8% decrease from INR 841.05 million in Q1 FY26.
  • The decrease was primarily due to lower revenues from the Nepal and Africa operations. Nepal experienced variability in institutional order timing and local market conditions, while Africa focused on building long-term commercial opportunities.

Profitability Analysis:

  • Consolidated Gross Profit Margin was 78%, up from 73% in Q1 FY26.
  • Consolidated EBITDA was INR 1,118.06 million, a 327% increase from INR 261.79 million in Q1 FY26. The EBITDA margin was 145%.
  • Consolidated Profit After Tax (PAT) was INR 967.32 million, a 459% increase from INR 172.96 million in Q1 FY26. The PAT margin was 125%.
  • The surge in consolidated profitability includes an exceptional gain of INR 853.49 million. This gain arose from the amendment of a Gates Foundation loan at Hester Africa, whereby the outstanding loan was reduced from USD 12.0 million to USD 5.0 million, accrued interest was waived, and the revised loan was made interest-free.

Way Forward & Strategy

The company's strategy for FY27, termed "Building with Intent. Growing with Science," will focus on:

  • 1. Strengthening its biologicals portfolio across Poultry and Animal Healthcare.
  • 2. Expanding market penetration across domestic and export markets.
  • 3. Advancing Research and Development through investments in new products and regulatory submissions.
  • 4. Improving manufacturing efficiency and enhancing utilisation of recently commissioned facilities.
  • 5. Strengthening operational excellence, cost discipline, and execution capabilities.

The company acknowledges that parts of the business are influenced by the timing of government programmes and international market conditions but remains focused on building long-term competitive advantages.

About the Company

Hester Biosciences Limited is a leading Indian animal health company. It has two divisions: Poultry Healthcare and Animal Healthcare (including Ruminants and Pet health). The company claims to be the world's largest manufacturer of PPR vaccine (~75% world market share) and has over 70% market share in Goat Pox vaccine in India. It is also the second largest poultry vaccine manufacturer in India with ~35% market share.