Hester Biosciences Limited reported a 99% increase in consolidated profit after tax to INR 574.84 million for the financial year ended 31 March 2026. Revenue from operations grew 7% to INR 3,325.99 million during the same period. On a standalone basis, profit after tax increased by 64% to INR 521.00 million, while revenue from operations rose 2% to INR 2,921.36 million.

The Poultry Healthcare division emerged as the primary growth driver, recording a 24% year-on-year increase in revenue. This performance was supported by deeper market penetration and sustained demand for the vaccine portfolio. A significant milestone during the year was the receipt of marketing and manufacturing licences for the H9N2 Avian Influenza vaccine, strengthening the company's biologicals portfolio. The Animal Healthcare segment faced challenges due to delays in government-led immunisation programmes, which impacted revenue in that division.

FY26 marked a significant step in infrastructure development with the capitalisation of the Fill-Finish facility and the BSL-3 facility. These investments are expected to enhance manufacturing capabilities and support future product development and market expansion. The company also undertook a partial divestment of its stake in Texas Lifesciences Private Limited, reducing its holding from 54.81% to 11%.

The Board of Directors has recommended a final dividend of INR 11 per equity share (110%) for the financial year 2025-26, subject to shareholder approval. The dividend pay-out ratio stands at 18% of standalone profits. The company’s net worth on a consolidated basis stood at INR 3,677.89 million as on 31 March 2026.

Financial Performance

The following table summarises the key financial metrics for the standalone and consolidated entities for the year ended 31 March 2026:

Operational Highlights

The company continued to strengthen its operational foundations during the year. The capitalisation of the Fill-Finish and BSL-3 facilities represents a significant step in enhancing manufacturing capabilities. These assets are designed to support future product development, manufacturing scale-up and market expansion. The repurposing of the BSL-3 facility for veterinary use further strengthens capabilities in high-biosecurity vaccine segments.

International operations remained stable, with growing traction in parts of Africa and steady performance in Tanzania. The company continued its involvement in the GALVmed-led VITAL programme, supporting expanded access to vaccines and their adoption for ruminant diseases across Africa.

Hester Biosciences Limited has submitted applications to BSE Limited and National Stock Exchange of India Limited seeking a "No Objection" for the reclassification of promoter-category shareholders Mr. Ravin Gandhi and Ms. Bela Gandhi to the "Public" category. The applications were submitted on 19 May 2026 under Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This follows the company's initial disclosure to the stock exchanges on 15 May 2026 regarding the receipt of reclassification requests from the shareholders via letters dated 14 May 2026.

Reclassification Request Details

The individuals seeking reclassification hold significant shareholding in the company. The details of their equity shares and voting rights are summarised below:

Rationale for Reclassification

Mr. Ravin Gandhi stated that he resigned from the Board of Directors on 12 May 2026, a resignation accepted by the company on the same date. He confirmed that he is no longer associated with the management or control of Hester Biosciences and does not hold any position as a director or Key Managerial Personnel. He affirmed that his shareholding is below the prescribed threshold and is held purely as a passive investment, with no intention to exercise control. He confirmed compliance with Regulation 31A(3)(b), including that related persons do not hold more than 10% of total voting rights and that there are no pending regulatory actions against him.

Ms. Bela Gandhi stated that she has not been involved in the management or control of the company for the last 12 years. She does not hold any Board position or Key Managerial Personnel role, and her shareholding is held purely as a passive investment. She similarly confirmed compliance with the conditions under Regulation 31A(3)(b), including that she does not hold more than 10% of total voting rights along with related persons and exercises no control over the company's affairs.

Regulatory Compliance

The disclosure regarding these reclassification requests was signed by Vinod Mali, Company Secretary and Compliance Officer, on 15 May 2026. The company is processing the requests in compliance with Regulation 31A(8) of the SEBI (LODR) Regulations, 2015.