Financial Performance Highlights

Standalone Performance (Q2 FY27)

  • Revenue increased by 28% year-over-year (YoY)
  • Profit After Tax (PAT) increased by 131% YoY
  • Gross Profit Margin stood at 78%
  • EBITDA Margin stood at 35%

Standalone Performance (H1 FY27)

  • Revenue increased by 21% YoY
  • PAT increased by 108% YoY
  • Gross Profit Margin stood at 78%
  • EBITDA Margin stood at 35%

Consolidated Performance

  • Q2 FY27 revenue grew by 38% YoY
  • Q2 FY27 PAT increased by 44% YoY
  • H1 FY27 revenue grew by 13% YoY
  • H1 FY27 PAT increased by 71% YoY
  • H1 consolidated profitability includes an exceptional accounting gain recognized in Q1 following amendment of Hester Africa's loan agreement with Gates Foundation

Division-wise Performance

Poultry Healthcare Division

  • Q2 revenue increased by 27% YoY
  • H1 revenue increased by 37% YoY
  • Growth driven by institutional business, deeper market penetration, and customer engagement
  • Portfolio includes vaccines, feed supplements, and disinfectant solutions
  • H9N2 (low pathogenic Avian Influenza) vaccine showing encouraging response in India

Animal Healthcare Division

  • Q2 revenue growth of 34% YoY, supported by increased tender execution
  • H1 revenue remained 14% below corresponding period previous year, reflecting lower Q1 sales
  • Business includes government-led immunization programs with variable execution schedules

Operational and Strategic Updates

Manufacturing and Infrastructure

  • BSL-3 laboratory and fill/finish facility recently capitalized, resulting in higher depreciation
  • Current manufacturing capacity utilization approximately 65% (broad estimate)
  • Signed power purchase agreement for 3-megawatt group captive solar project to improve energy cost efficiency
  • Focus on increasing commercial utilization as products progress through development

Product Development

  • Advancing biological pipeline across poultry and animal healthcare through regulatory dossier submissions
  • Regulatory requirements becoming increasingly rigorous, potentially extending development timelines
  • Development program includes products suited for BSL-3 laboratory infrastructure

International Operations

Nepal Operations
  • Anticipated procurement under international PPR eradication programs not materialized at originally envisaged scale
  • Evaluating how best to adapt business to current environment
Hester Africa
  • Priority to build consistent business and improve financial sustainability
  • Loan amendment with Gates Foundation provided financial support
  • Entering export markets within Africa, Middle East, and Asia with products manufactured only in Africa plant
  • Focus on ruminant vaccines development

Financial Structure

  • Hester India providing $1 million intercompany loan to Hester Africa for business fortification
  • Consolidated debt approximately INR 102 crores with cash balance of INR 23 crores (net debt ~INR 80 crores)
  • Intangible assets under development worth INR 10 crores related to R&D and licensing expenses

Export Performance

  • Export from India was approximately 10% of sales in FY26
  • Export ratio has improved in FY27 due to new export opportunities

Management Guidance and Priorities

For remainder of FY27, management priorities include:

  • Sustaining poultry healthcare growth
  • Strengthening biologicals business across poultry and animal health
  • Advancing product development and regulatory submissions
  • Expanding business opportunities
  • Improving manufacturing efficiency and capacity utilization
  • Developing commercially viable path for Nepal operations
  • Improving financial sustainability for Africa operations

Participants

Management:

  • Mr. Rajiv Gandhi - Chief Executive Officer and Managing Director
  • Ms. Priya Gandhi - Executive Director
  • Mr. Ashish Desai - Chief Financial Officer

Moderator:

  • Ms. Nisha - ICICI Securities Limited