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Hester Biosciences Reports Q1 FY27 Results: Exceptional Gain Drives Consolidated Net Profit Up 459% to ₹967.32 Million

Posted On : 2026-07-31 12:50:50( TIMEZONE : IST )

Animal and poultry healthcare leader Hester Biosciences Limited has released its unaudited standalone and consolidated financial results for the first quarter ended June 30, 2026 (Q1 FY27). Supported by stellar performance in its core domestic poultry business and a massive exceptional gain from a loan restructuring at its African subsidiary, the company reported sharp profitability gains.

Standalone Performance: Poultry Business Powers Strong Growth

Hester's standalone revenue from operations grew 14% year-on-year to ₹726.60 million in Q1 FY27, compared to ₹634.90 million in Q1 FY25.

Poultry Healthcare Division: The division delivered robust performance with revenues expanding 48% YoY to ₹617.69 million (up from ₹416.52 million in Q1 FY25). Growth was driven by higher institutional business, deeper market penetration, and strong traction in newly launched healthcare products like feed supplements and disinfectant solutions.

Animal Healthcare Division: Revenues declined 50% YoY to ₹108.44 million (compared to ₹218.22 million in Q1 FY25). This drop was primarily due to the timing of government-led immunization tenders and execution delays rather than structural demand softness.

Standalone Profitability Soars

Driven by a favorable product mix and operational efficiencies, gross profit margin expanded to 78% (up from 69% in Q1 FY25). Standalone EBITDA nearly doubled, surging 95% YoY to ₹260.34 million with EBITDA margins reaching 36%. Standalone Profit After Tax (PAT) expanded 88% YoY to ₹147.11 million (compared to ₹78.38 million in Q1 FY25), translating to a basic and diluted EPS of ₹17.29 per share.

Consolidated Performance: Debt Restructuring Delivers Major Boost

On a consolidated basis, revenue from operations dropped 8% YoY to ₹772.44 million in Q1 FY27 from ₹841.05 million in Q1 FY25. The decline was largely attributable to lower international contributions from Nepal (due to order timing variability) and Africa (which remains focused on market development and registration expansion).

Despite the top-line contraction, consolidated Net Profit (PAT) skyrocketed 459% YoY to ₹967.32 million (up from ₹172.96 million in Q1 FY25), elevating consolidated EPS to ₹113.71 per share.

₹853.49 Million Exceptional Gain at Hester Africa

The dramatic rise in consolidated net profit was primarily catalyzed by a significant exceptional gain of ₹853.49 million. The company successfully renegotiated its outstanding loan with the Gates Foundation at Hester Africa:

The principal loan balance was reduced substantially from USD 12.0 million to USD 5.0 million.

All accrued interest was completely waived.

The restructured loan balance was made entirely interest-free.

Operational Outlook & Strategic Direction

Moving forward under its core philosophy of "Building with Intent. Growing with Science," Hester Biosciences has outlined key priorities for FY27:

Portfolio Expansion: Strengthening biologicals across poultry and animal healthcare, with continued R&D investments in new regulatory submissions and product development.

Market Penetration: Accelerating footprint expansion across domestic and international export channels.

Facility Utilization: Enhancing manufacturing efficiency and scaling utilization across recently commissioned units.

Cost Discipline: Maintaining execution capabilities and operational discipline to offset cyclical variability in government tenders and global markets.

Shares of Hester Biosciences Limited was last trading in BSE at Rs. 2461.35 as compared to the previous close of Rs. 2493.65. The total number of shares traded during the day was 16109 in over 1916 trades.

The stock hit an intraday high of Rs. 2669.00 and intraday low of 2375.25. The net turnover during the day was Rs. 41022734.00.