Hester Biosciences Ltd’s Standalone Net Profit in Q3FY26 Rose 140% to Rs 10.67 Crore
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The stock is up by 27.60 per cent from its 52-week low of Rs 1,246.75 per share.
Hester Biosciences Limited has reported a significant surge in its standalone net profit for the third quarter of FY26, reaching Rs 10.67 crore, a 140 per cent increase compared to Rs 4.44 crore in the same period last year. Revenue from operations for Q3FY26 rose by 12 per cent to Rs 70.35 crore, while EBITDA grew by 72 per cent to Rs 17.75 crore, reflecting an improved EBITDA margin of 25 per cent. For the first nine months of the fiscal year, the company recorded a net profit of Rs 25.72 crore, marking a 16 per cent year-on-year growth.
The Poultry Healthcare Division emerged as a primary growth driver, delivering a 32 per cent increase in Q3FY26 revenue due to deeper market penetration and focused technical engagement. In contrast, the Animal Healthcare Division saw a 38 per cent decline during the quarter, largely attributed to delays in government-led immunisation programs for the ruminant segment. However, the company expects a recovery in this division starting February 2026 as it begins executing PPR orders under the national immunisation program.
Strategically, Hester has strengthened its infrastructure by capitalising on its fill-finish facility, which effectively doubles its drug product capacity and enhances manufacturing scalability for domestic and export markets. The company also reached a major regulatory milestone post-quarter-end by receiving marketing and manufacturing licenses for the H9N2 Avian Influenza vaccine. This addition is expected to further bolster the company's poultry vaccine portfolio and support its goal of reducing dependence on tender-based revenues.
Looking ahead, Hester remains focused on maintaining operational discipline through controlled overheads and process standardisation. By deepening its presence in private and commercial markets and utilising its expanded manufacturing capacity, the company is positioned to sustain performance and margin stability. The integration of the new H9N2 vaccine and the anticipated surge in ruminant segment orders in Q4 are central to its strategy for resilient future growth.
About the Company
Established in 1997, Hester Biosciences Limited stands as a leader in the Indian animal health sector, operating through its dedicated Poultry and Animal Healthcare divisions to provide a wide range of vaccines and health products. The company holds a dominant global position as the world's largest manufacturer of the PPR vaccine with a 75 per cent market share, while also maintaining a strong domestic presence with over 70 per cent of the Indian market for the Goat Pox vaccine and approximately 35 per cent of the poultry vaccine market. Leveraging diverse technological platforms—including Chick Embryo Origin, Tissue Culture, and Fermentation for both live and inactivated vaccines—Hester remains committed to the "One Health" vision, recognising that improving animal health is essential for the well-being of humanity.
The company has a market cap of Rs 1,439 crore and has been maintaining a healthy dividend payout of 25 per cent. The stock is up by 27.60 per cent from its 52-week low of Rs 1,246.75 per share. The shares of the company have a PE of 50x, an ROE of 10 per cent and an ROCE of 10 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.