Low-Debt Animal Healthcare Company Reports 459% YoY Profit Growth in Q1; EBITDA Surges Over 300%; Here's Why

On Thursday, Indian equity benchmark indices traded marginally higher, with the benchmark Nifty 50 index rising 20.35 points, or 0.08 per cent, to 24,270.55. Amid the positive market sentiment, Hester Biosciences share price gained 0.77 per cent to Rs 2,516.20 after the company reported its Q1 FY27 financial results.

Hester Biosciences Q1 FY27 Results

Hester Biosciences reported consolidated revenue from operations of Rs 77.24 crore for the quarter ended June 30, 2026, compared with Rs 84.11 crore in the corresponding quarter last year.

The company reported EBITDA of Rs 111.81 crore, compared with Rs 26.18 crore in Q1 FY26, while the EBITDA margin improved to 145 per cent from 31 per cent. Profit after Tax (PAT) surged 459 per cent YoY to Rs 96.73 crore from Rs 17.30 crore, while the PAT margin increased to 125 per cent from 21 per cent.

Exceptional Gain Boosts Profitability

The company said consolidated profitability during the quarter included an exceptional gain of Rs 85.35 crore arising from the amendment of the Gates Foundation loan at Hester Africa.

During the quarter, the outstanding loan was reduced from USD 12 million to USD 5 million, accrued interest was waived and the revised loan was made interest-free, resulting in the exceptional accounting gain. The company added that consolidated revenue was lower year-on-year mainly due to lower revenues from its Nepal and Africa operations.
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Business Performance and Outlook

On a standalone basis, gross profit margin improved to 78 per cent from 69 per cent, while EBITDA and PAT increased 95 per cent and 88 per cent, respectively.

The Poultry Healthcare Division reported 48 per cent revenue growth during the quarter, supported by higher institutional business, stronger customer engagement and traction in its health products portfolio. However, the Animal Healthcare Division continued to be impacted by delays in government immunisation programmes.

The company said its focus during FY27 will remain on strengthening its biologicals portfolio across poultry and animal healthcare, expanding domestic and export markets, investing in research and development, improving manufacturing efficiency and maintaining operational excellence.

About Hester Biosciences

Hester Biosciences Limited is one of India's leading animal healthcare companies engaged in manufacturing vaccines and health products. The company operates through Poultry Healthcare and Animal Healthcare divisions and is the world's largest manufacturer of PPR vaccine, holding around 75 per cent of the global market. It also has more than 70 per cent market share in Goat Pox vaccine in India and is the country's second-largest poultry vaccine manufacturer with around 35 per cent market share.

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Disclaimer: The article is for informational purposes only and not investment advice.