Hester Biosciences announced its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The Board of Directors, in their meeting held on May 15, 2026, approved the results and recommended a dividend of INR 11 per equity share (110%) for the financial year 2025-26, subject to shareholder approval at the ensuing Annual General Meeting. The company filed its Corporate Presentation for FY 2025-26 with the stock exchanges on May 15, 2026. Subsequently, on May 18, 2026, the company submitted newspaper clippings of the published extract of its consolidated audited financial results to BSE Limited and National Stock Exchange of India Limited, confirming publication in the Ahmedabad edition of Financial Express (English) and Financial Express (Gujarati) on May 16, 2026. Statutory auditors Chandulal M. Shah & Co. issued an unmodified opinion on both the standalone and consolidated audited financial results.

Standalone Financial Performance

For the financial year ended March 31, 2026, Hester Biosciences reported standalone revenue from operations of INR 2,921.36 million, a 2% increase compared to INR 2,864.66 million in the previous year. Profit after tax (PAT) for the year surged by 64% to INR 521.00 million from INR 318.42 million in FY25. EBITDA for FY26 stood at INR 871.03 million, up 56% YoY, with an EBITDA margin of 30% compared to 19% in FY25. For the quarter ended March 31, 2026, standalone revenue stood at INR 937.13 million — up 22% YoY — while PAT increased significantly to INR 263.84 million from INR 96.35 million in the corresponding quarter of the previous year.

Standalone Segment Performance

The Poultry Healthcare Division was the primary growth driver, with standalone segment revenue rising 24% YoY to INR 2,060.79 million in FY26 from INR 1,664.39 million in FY25, supported by improved market penetration, expanded placements, and sustained vaccine demand. The Animal Healthcare Division recorded a revenue decline to INR 818.32 million from INR 1,198.83 million in FY25, impacted by delays in government immunisation programmes and uneven demand across certain commercial markets. During the quarter, the company received marketing and manufacturing licences for its H9N2 Avian Influenza vaccine, further strengthening its poultry vaccine portfolio. On a standalone basis, Poultry Healthcare contributed 71% of divisional revenue and Animal Healthcare contributed 29% for FY 2025-26.

Standalone Profitability

The following table presents the standalone profitability metrics for Q4 and FY26:

Standalone Balance Sheet Highlights

As at March 31, 2026, standalone total assets stood at INR 5,573.46 million compared to INR 5,459.96 million in the prior year. Total equity increased to INR 3,851.82 million from INR 3,390.87 million, supported by higher retained earnings. Non-current borrowings declined to INR 216.83 million from INR 513.12 million, reflecting significant debt repayment during the year. Standalone cash and cash equivalents at year-end stood at INR 7.90 million, with net cash generated from operating activities of INR 509.20 million for the year.

Consolidated Results

On a consolidated basis, revenue from operations for FY26 rose by 7% to INR 3,325.99 million from INR 3,111.02 million in the prior year. Consolidated PAT for the year grew by 99% to INR 574.84 million, compared to INR 288.26 million in FY25. Consolidated EBITDA stood at INR 1,056.51 million, up 53% YoY, with an EBITDA margin of 32% versus 22% in FY25. For the quarter ended March 31, 2026, the company reported consolidated revenue of INR 1,001.10 million (up 22% YoY) and a PAT of INR 165.46 million, compared to INR 15.41 million in Q4 FY25 — a growth of 974%. Consolidated total income for FY26 stood at INR 3,422.83 million versus INR 3,150.26 million in FY25, with paid-up equity share capital of INR 85.07 million and reserves and surplus of INR 3,517.28 million. On a consolidated basis, Poultry Healthcare contributed 62% of divisional revenue and Animal Healthcare contributed 38% for FY 2025-26. Consolidated performance was supported by improved operational execution and stronger profitability across key business segments, with consolidated profitability also benefiting from foreign exchange gains and exceptional financial items during the year.

Consolidated Balance Sheet Highlights

On a consolidated basis, total assets as at March 31, 2026 stood at INR 6,779.41 million compared to INR 6,533.85 million in the prior year. Total equity increased to INR 3,677.89 million from INR 3,266.56 million. Non-current borrowings declined to INR 899.64 million from INR 1,333.68 million, while consolidated cash and cash equivalents at year-end stood at INR 27.67 million. Net cash generated from consolidated operating activities for the year was INR 641.41 million.

Five-Year Financial Trend

The corporate presentation highlights a multi-year financial performance trajectory for Hester Biosciences, with FY 2025-26 marking a significant improvement in both sales and profitability compared to prior years.

Operational Updates

During the quarter, the company capitalised its BSL-3 facility as part of its ongoing capacity expansion and infrastructure strengthening initiatives. The company is also undertaking optimisation of certain manufacturing infrastructure in line with current operational and scale-up requirements, with focus on improving utilisation efficiency and operating cost structure. The Board of Directors, at its meeting dated March 11, 2026, approved the divestment of 43.81% equity shareholding out of 54.81% in its subsidiary, Texas Lifescience Private Limited (TLPL), by way of sale/transfer of 2,163,377 equity shares of INR 10 each at a price of INR 42.34 per share to an entity affiliated to existing promoter shareholders of TLPL. TLPL ceased to be a subsidiary of the company from March 27, 2026 onwards. The company also continued participation in the GALVmed-led VITAL 2 programme — focused on enabling sustainable market-driven ruminant vaccine delivery and increasing vaccine adoption across Kenya, Nigeria and Tanzania — while overseas operations continued to witness mixed market conditions with the company strengthening its presence across selected African and export markets during the year.

Manufacturing Infrastructure

Hester Biosciences operates three manufacturing plants across India, Nepal, and Africa, with a combined global footprint spanning 35+ countries. The following table summarises the key manufacturing details:

Board Decisions

In addition to approving the financial results and recommending the dividend of INR 11 per equity share, the Board approved the re-appointment of Ms. Priya Gandhi as Executive Director for a period of three years with effect from October 28, 2026, up to March 31, 2029 (both days inclusive), subject to member approval by means of a special resolution, as recommended by the Nomination and Remuneration Committee. Ms. Gandhi has been associated with the company since 2016 and holds an undergraduate degree from Srishti Manipal Institute of Art, Design and Technology, Bengaluru, and a Postgraduate degree in Management for Family Business from the Indian School of Business (ISB), Hyderabad. She is the daughter of Mr. Rajiv Gandhi, CEO & Managing Director, and niece of Mr. Sanjiv Gandhi, Non-Executive Director. Her areas of focus include operational alignment, business expansion, corporate communications, branding, and strengthening strategic partnerships.

About Hester Biosciences

Hester Biosciences Limited is one of India's leading animal health companies, manufacturing vaccines and health products since 1997. The company operates through two divisions — Poultry Healthcare and Animal Healthcare (which includes Ruminants and Pet health segments). It is the world's largest manufacturer and supplier of PPR vaccine with approximately 75% of the world market share, and holds over 70% market share in Goat Pox vaccine in India. It is the second largest poultry vaccine manufacturer in India with approximately 35% market share. Hester's vaccine capabilities include multiple platforms such as Chick Embryo Origin, Continuous Cell line, Tissue Culture and Fermentation based live as well as inactivated vaccines.

Hester Biosciences Limited announced its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, with the Board of Directors approving the results at their meeting held on May 15, 2026. The statutory auditors, Chandulal M. Shah & Co., Chartered Accountants, issued an unmodified audit opinion on both standalone and consolidated financial results. Alongside the results, the Board recommended a dividend of INR 11 per equity share of INR 10 each, representing 110% for FY26, subject to shareholder approval at the ensuing Annual General Meeting.

Standalone Financial Performance

Hester Biosciences delivered a strong standalone performance in Q4 and FY26, driven primarily by the Poultry Healthcare division. The following table presents the standalone revenue breakdown by division:

The Poultry Healthcare division recorded strong growth during Q4 and FY26, supported by improved market penetration, expanded placements, and sustained demand for vaccines. The Animal Healthcare division continued to be impacted by delays in government immunisation programmes and uneven demand across certain commercial markets. Other Operating Income during FY26 primarily comprises milestone-linked grant income associated with development-focused programmes. During the quarter, the company received marketing and manufacturing licences for its H9N2 Avian Influenza vaccine, further strengthening its poultry vaccine portfolio.

Standalone Profitability

Standalone profitability improved significantly, with gross profit margins expanding and EBITDA nearly tripling in Q4. The table below summarises key profitability metrics:

Gross profit margins improved during Q4 and FY26, supported by a favourable product mix and continued operational discipline. EBITDA and PAT growth were driven by stronger contribution from the Poultry Healthcare division, improved product mix, and continued cost optimisation initiatives. The company maintained its focus on process standardisation, business hygiene, and disciplined working capital management during the year. Profitability for FY26 also includes certain non-operational financial income.

Consolidated Financial Performance

At the consolidated level, Hester Biosciences reported robust growth across revenue and profitability metrics, with Q4 consolidated PAT surging 974%. The table below presents the consolidated financial highlights:

Consolidated performance was supported by improved operational execution and stronger profitability across key business segments. Overseas operations continued to witness mixed market conditions, though the company strengthened its presence across selected African and export markets during the year. Consolidated profitability also benefited from foreign exchange gains and exceptional financial items during the year, which included the partial divestment of the company's stake in Texas Lifesciences. The company continued its participation in the GALVmed-led VITAL 2 programme focused on vaccine awareness and adoption initiatives in Africa.

Operational and Strategic Developments

During the quarter, the company capitalised its BSL-3 facility as part of its ongoing capacity expansion and infrastructure strengthening initiatives. The company is also undertaking optimisation of certain manufacturing infrastructure in line with current operational and scale-up requirements, with a focus on improving utilisation efficiency and operating cost structure. On the corporate governance front, the Board approved the re-appointment of Ms. Priya Gandhi as Executive Director for a period of three years with effect from October 28, 2026, subject to shareholder approval. Ms. Priya Gandhi has been associated with the company since 2016 and holds a Postgraduate degree in Management for Family Business from the Indian School of Business, Hyderabad. She is the daughter of Mr. Rajiv Gandhi, CEO & Managing Director, and niece of Mr. Sanjiv Gandhi, Non-Executive Director.

Way Forward

FY26 was characterised by operational strengthening, capacity expansion, and improved execution for Hester Biosciences. The company remains focused on strengthening its biologicals portfolio across poultry and animal healthcare, improving market penetration in domestic and export markets, and reducing dependence on institutional business through portfolio diversification. With the commercialisation of the H9N2 Avian Influenza vaccine, expanded manufacturing capabilities, and continued focus on scientific engagement and field execution, the company remains committed to building sustainable long-term growth. Hester also continues to strengthen its presence across Africa and other export markets through registrations, market development initiatives, and strategic partnerships.