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-Hester Biosciences strengthens operating performance in Q1 FY27, with standalone revenue up 14% and PAT rising 88%
-Hester Biosciences Q1 FY27: Standalone Revenue Grows 14%, PAT Rises 88%; EBITDA Surges 95%. Poultry Healthcare Division grows 48%; Gross margins improve to 78% as company focuses on scientific capabilities, operational efficiency and long-term growth
The Print Times
Hester Biosciences Limited reported encouraging operating performance during the first quarter of FY27, with the company continuing its focus on strengthening scientific capabilities, manufacturing infrastructure, operational discipline and long-term competitiveness. Addressing the Q1 FY27 earnings conference call, Mr. Rajiv Gandhi, Chief Executive Officer and Managing Director, Hester Biosciences Limited, said the quarter provided encouraging evidence that the initiatives undertaken over the past year are beginning to translate into stronger operating performance.
Hester Biosciences Limited is one of India’s leading animal healthcare companies and is the second largest poultry vaccine manufacturer in the country. Over the years, it has transformed from a small proprietary trading business into Asia’s largest one-stop animal biological manufacturing facility. Hester now has a strategic presence in over 35+ countries, while focusing on key market needs in India, Nepal and Tanzania.
On a standalone basis, revenue from operations grew by 14%, while profit after tax (PAT) increased by 88% over the corresponding quarter of the previous year. Gross margins improved from 69% to 78%, mainly supported by a favourable product mix and continued efforts towards operational efficiencies. EBITDA grew by 95%, reflecting stronger operating performance and disciplined execution across the business.
At the consolidated level, revenue from operations declined by 8%, primarily due to lower revenues from the Nepal and Africa operations. Consolidated profitability during the quarter included an exceptional accounting gain arising from the amendment of the soft loan extended to Hester Africa by the Gates Foundation. During the quarter, the outstanding loan was reduced from USD 12 million to USD 5 million. The accrued interest was waived and the revised loan was made interest-free. This reflected the foundation’s recognition of the geopolitical and operating challenges in the region and its continued support for Hester Africa’s long-term mission and development.
Poultry Healthcare Division Delivers 48% Growth
The Poultry Healthcare Division delivered strong performance during the quarter, recording 48% growth over the corresponding quarter of the previous year. The growth was supported by higher institutional business, deeper market penetration and continued strengthening of customer engagement across key markets.
Hester is also seeing early traction in its Poultry Health Products Portfolio, introduced during the previous financial year, including feed supplements and disinfectant solutions. These products complement the company’s vaccine business by strengthening bird immunity, improving farm hygiene and supporting better disease prevention outcomes.
The company continues to follow a broader approach to avian influenza that extends beyond vaccination alone. Hester has developed a more holistic offering combining vaccines with biosecurity, farm hygiene, gut health products and scientific advisory. The objective is to provide poultry farmers with integrated health solutions aimed at improving farm productivity and disease management, rather than viewing disease prevention through a single-product approach.
Alongside this, Hester continues to strengthen its poultry portfolio through scientific engagement, customer education and responsible commercialisation of its products.
Animal Healthcare Division Impacted by Government Programme Timing
The Animal Healthcare Division continued to be impacted by the timing of government-led immunisation programmes, particularly under the PPR eradication and Lumpy Skin Disease Control Initiative, for which Hester supplies its Goat Pox vaccine.
According to the company, this remains a timing-related issue rather than a reflection of any underlying demand issue. Preventive animal healthcare continues to offer a significant long-term opportunity, and Hester remains committed to strengthening its portfolio while building a more balanced business across institutional, commercial and export markets.
R&D Remains Central to Long-Term Strategy
Research and development continues to remain central to Hester’s long-term strategy. During the quarter, the company submitted regulatory dossiers in the animal health segment, reflecting continued investment in expanding its biological pipeline and creating future growth opportunities.
The company highlighted that scientific innovation is a long-term process requiring sustained investment, regulatory discipline and patience. Hester remains focused on strengthening its research capabilities and building a differentiated portfolio across poultry and animal healthcare.
International Operations Focused on Market Development
Hester continues to strengthen its long-term international presence. While Nepal and Africa reported lower revenues during the quarter, the company’s strategic direction remains unchanged.
The focus remains on registration, market development and strengthening commercial presence across international markets. Hester remains confident that the investments being made today will support sustainable long-term growth.
Focus on Biological Portfolio, Market Expansion and Manufacturing Utilisation
Looking ahead through FY27, Hester’s priorities remain focused on strengthening its biological portfolio, expanding market penetration across domestic and export markets, advancing its research and development pipeline, improving utilisation of manufacturing infrastructure, and maintaining operational excellence and disciplined execution.
The company highlighted that several of these initiatives require time before their impact is reflected in financial performance. Product development, regulatory approval, registration and market development are inherently long-term processes. Hester remains focused on building on the investments made over the past several quarters and years to strengthen its platform for sustainable long-term growth.
