Hester Biosciences Limited , a leading animal health company in India, has announced its financial results for the second quarter and first half of fiscal year 2026, revealing a mixed performance across its business segments.

Consolidated Performance Highlights

For Q2 FY26, Hester Biosciences reported:

• Consolidated revenue from operations declined 15% year-over-year to INR 709.69 million
• Profit after tax (PAT) surged 71% to INR 143.31 million
• EBITDA increased 7% to INR 235.97 million, with EBITDA margin expanding to 33% from 26% in Q2 FY25

For H1 FY26, the company achieved:

• Consolidated revenue from operations decreased 7% year-over-year to INR 1,550.74 million
• PAT nearly doubled, growing 99% to INR 316.27 million
• EBITDA rose 19% to INR 497.76 million, with margin improvement to 32% from 25% in H1 FY25

Segment Performance

Poultry Healthcare Division

• Q2 FY26 revenue grew 18% to INR 480.16 million
• H1 FY26 revenue increased 10% to INR 896.68 million
• Growth driven by volume gains and sustained demand for core vaccines

Animal Healthcare Division

• Q2 FY26 revenue declined 50% to INR 164.90 million
• H1 FY26 revenue fell 41% to INR 383.12 million
• Decline attributed to delays in government-led immunisation programs for PPR and Lumpy Skin Disease

Operational Highlights

• Received market authorization for the H9N2 vaccine, strengthening the poultry vaccine portfolio
• Maintained stable gross profit margins at approximately 68% on a standalone basis
• Implemented cost optimization measures and operational discipline to mitigate impact of lower sales volumes

Subsidiary Performance

Hester Nepal

• Q2 FY26: Net loss of INR 10.99 million on revenue of INR 5.49 million
• H1 FY26: Net profit of INR 8.20 million on revenue of INR 56.28 million
• Performance impacted by timing of institutional orders and temporary disruptions in Nepal

Hester Africa

• Q2 FY26: Net profit of INR 48.20 million on revenue of INR 59.89 million
• H1 FY26: Net profit of INR 103.22 million on revenue of INR 232.16 million
• Profit growth supported by improved operational discipline and favorable foreign exchange movements

Management Commentary and Outlook

Rajiv Gandhi, CEO & Managing Director, commented on the results: "While our consolidated revenues faced headwinds due to delays in government immunization programs, our focus on operational efficiency and cost management has yielded significant bottom-line growth. The Poultry Healthcare Division continues to perform well, and we are optimistic about the growth potential of our newly authorized H9N2 vaccine."

The company outlined several strategic initiatives:

1. Reducing dependence on tender-based revenues to build a more balanced and resilient portfolio
2. Deepening presence across commercial, private, and export markets
3. Leveraging the H9N2 vaccine authorization to explore new export opportunities
4. Driving innovation, margin stability, and sustainable growth through product diversification and geographic expansion

Market Position

Hester Biosciences maintains strong market positions:

• World's largest manufacturer and supplier of PPR vaccine with approximately 75% global market share
• Over 70% market share in Goat Pox vaccine in India
• Second-largest poultry vaccine manufacturer in India with approximately 35% market share

The company expects to regain momentum in the Animal Healthcare Division as government immunization programs resume, particularly in Q4 FY26.

Conclusion

Despite facing challenges in the Animal Healthcare segment, Hester Biosciences has demonstrated resilience through its diversified portfolio and operational efficiency. The significant improvement in profitability, coupled with strategic initiatives and market authorizations, positions the company for potential growth in the coming quarters. Investors and stakeholders will be closely watching how the company navigates the evolving market dynamics and executes its growth strategies.

Hester Biosciences , a leading animal healthcare company, has reported mixed results for the first quarter, with a strong turnaround in its African operations offsetting headwinds in its Indian business.

Standalone Performance

On a standalone basis, Hester Biosciences experienced a 14% decline in revenue, which stood at INR 63.00 crores. The company's Profit After Tax (PAT) also saw a 7% decrease. This dip in performance was primarily attributed to delayed government immunization programs for Peste des Petits Ruminants (PPR) and lumpy skin disease in the Animal Health division.

Divisional Performance

Animal Health Division

The Animal Health division, which includes both Ruminant and Petcare businesses, witnessed a significant 33% decline. This was mainly due to the deferred execution of large immunization programs for PPR and lumpy skin disease, for which Hester provides its Goat Pox Vaccine.

Poultry Healthcare Division

In contrast, the Poultry Healthcare division recorded a modest 2% growth, driven by sustained demand for key vaccines such as Newcastle disease and Marek's vaccines. The company's recently launched feed supplements and disinfectants are gaining acceptance in the market.

Consolidated Performance

Despite the challenges in the standalone business, Hester Biosciences reported impressive consolidated results. The company's consolidated PAT grew by over 100%, primarily driven by improved international performance and effective margin control.

Africa Operations: A Significant Turnaround

Hester Africa achieved a remarkable turnaround, posting a profit of INR 5.00 crores on a revenue of INR 17.00 crores. This is a significant improvement from the INR 3.00 crores revenue and losses reported in the same quarter last year. The company's facility in Tanzania has stabilized, and Hester is expanding its presence in African markets with high demand for ruminant and poultry vaccines.

Future Outlook

Despite the current headwinds in the Indian market, Hester Biosciences' management remains optimistic about the future. They expect institutional demand to normalize and growth to return in the coming quarters. The company is also awaiting regulatory clearances for the launch of its avian influenza vaccine, which could provide a boost to its product portfolio.

Earnings Call Highlights

During the earnings conference call, Priya Gandhi, Executive Director of Hester Biosciences, emphasized the company's focus on operational efficiency and cost optimization. She stated, "Despite the top line pressure, our focus on improving internal efficiencies and managing product mix has helped in protecting our profitability."

The management also highlighted their efforts in realigning sales and marketing approaches, strengthening R&D prioritization, and enhancing preparedness for upcoming product launches.

In conclusion, while Hester Biosciences faced challenges in its domestic market during Q1, the strong performance of its international operations, particularly in Africa, demonstrates the company's resilience and the potential of its diversified geographical presence. The management's optimism for the upcoming quarters, coupled with their focus on operational improvements and new product launches, suggests a positive outlook for the company's future performance.