Hester Biosciences Limited has received revised credit ratings from CARE Ratings Limited, with downgrades across all bank facilities announced on 19 March 2026. The rating agency communicated the revision through an electronic letter dated 19 March 2026, prompting the company to inform stock exchanges under regulatory compliance requirements.

Credit Rating Downgrades

CARE Ratings has downgraded Hester Biosciences' credit ratings across three categories of bank facilities. The revision affects the company's borrowing profile and reflects the rating agency's assessment of recent financial performance.

Facility-wise Rating Details

The rating revision covers bank facilities totaling ₹131.47 crore across different categories. Long-term bank facilities worth ₹66.25 crore, reduced from the previous ₹95.18 crore, received the CARE BBB; Stable rating. The combined long-term and short-term bank facilities of ₹65.00 crore were assigned CARE BBB; Stable/CARE A3+ ratings, while short-term bank facilities of ₹0.22 crore received the CARE A3+ rating.

Assessment Basis and Company Response

The rating revision was conducted based on audited financials for financial year 2024-25 and unaudited financial results for the half-year ended 30 September 2025. Hester Biosciences characterizes these ratings as transitional, citing several positive developments that occurred after 30 September 2025.

The company highlighted five key improvement indicators:

• Enhancement in operating margin and net profit margin
• Improvement in ROCE ratios and total debt to PBILDT ratio
• Regulatory marketing and manufacturing license approval for Avian Influenza H9N2 vaccine
• Adequate liquidity positioned against debt repayment obligations
• Improved debt coverage indicators in H1FY26 on year-on-year basis and over FY25 levels

Business Profile and Market Position

Hester Biosciences Limited operates as one of India's leading animal health companies, manufacturing vaccines and health products since 1997. The company operates through two main divisions: Poultry Healthcare and Animal Healthcare, which includes ruminants and pet health segments.

The company maintains strong market positions across key product categories. It holds approximately 75% of the global PPR vaccine market, making it the world's largest manufacturer and supplier. In India, Hester commands over 70% market share in Goat Pox vaccine, used for cattle immunization against Lumpy Skin disease, and maintains approximately 35% market share as the second-largest poultry vaccine manufacturer.

Forward Outlook

Hester Biosciences has committed to improving bottom-line performance, expecting positive changes including potential credit rating improvements. The company continues focusing on innovation, margin stability, and sustainable growth through product diversification and geographic expansion, targeting increased revenues and profitability at both standalone and consolidated levels.

Source: None/Company/INE782E01017/0fa418ce-a485-4187-8e8a-74e3e8e46ea8.pdf

Hester Biosciences has received board approval for its strategic divestment of equity stake in subsidiary Texas Lifesciences Private Limited (TLPL). The Board of Directors, meeting on 11 March 2026, approved the transaction following recommendations from the Audit Committee under Regulation 30 of SEBI Listing Regulations.

Board Meeting and Transaction Approval

The board meeting commenced at 10:46 a.m. (IST) and concluded at 11:05 a.m. (IST), formally approving the divestment of 43.81% equity shareholding out of total 54.81% in TLPL. The company has agreed to transfer its shareholding to existing promoter-affiliated entities through a share transfer agreement.

TLPL Financial Performance

Texas Lifesciences Private Limited contributed significantly to the group's operations during FY 2024-25. The subsidiary's financial metrics demonstrate its operational scale within the Hester Biosciences ecosystem, with over 97% of sales directed to HBL.

Strategic Restructuring and Regulatory Compliance

The divestment represents a strategic restructuring where TLPL will cease to be a subsidiary upon completion of the share transfer. TLPL is not classified as a material subsidiary of the company. However, Hester Biosciences will maintain business relationships with TLPL and retain an 11.00% equity investment in the company.

The buyer, Ticop Life Private Limited, is affiliated with existing promoter shareholders of TLPL. The transaction does not fall under related party transactions as the parties involved are not considered related entities under applicable regulations.

Transaction Structure and Timeline

The share transfer agreement provides for completion within three months from the agreement date, with the total aggregate consideration of Rs 92.00 million subject to terms and conditions. Post-transaction, TLPL will be deconsolidated from Hester Biosciences' financial statements while maintaining operational business ties. The company has informed both BSE Limited and National Stock Exchange of India Limited about this development as per regulatory requirements.