| P/E Ratio | 14.44vs Sector 37.88 |
|---|---|
| Market Cap | ₹1,966.8 CrPharmaceuticals |
| Piotroski Score | 8Strong Financials |
| RSI | 59.08Neutral Zone |
| Metric | Q2-27 | Q1-27 | Q2-26 |
|---|---|---|---|
| Revenue from Operations | 97.9 | 77.2 | 71.0 |
| Other Income | 1.5 | 1.6 | 9.7 |
| Total Income | 99.4 | 78.9 | 80.7 |
| Profit Before Tax | 26.5 | 102 | 17.0 |
| Exceptional Items | 0.4 | 85.3 | 0.0 |
| Net Profit | 20.6 | 96.7 | 14.3 |
| Operating Margin | 26.7% | 128.9% | 21.1% |
| Net Profit QoQ | -78.7% | ||
| Net Profit YoY | +44.1% | ||
| Adj. Profit QoQ | +66.7% | ||
| Adj. Profit YoY | +235.6% | ||
Key highlights
- Revenue from operations grew 38% YoY to ₹97.9 crore from ₹71.0 crore in Q2 FY26
- Consolidated net profit climbed 44.1% YoY to ₹20.6 crore for the quarter ended September 2026
- Poultry Healthcare division revenue increased 27% in Q2, driven by institutional business momentum
- Exceptional gain of ₹85.77 crore recorded in H1 FY27 due to Gates Foundation loan amendment at Hester Africa
- Gross profit margins improved to 78% from 68% in the corresponding previous quarter
Poultry and Animal Healthcare Segments Drive Top-line Expansion
The 38% year-on-year revenue growth was primarily fueled by a 27% increase in the Poultry Healthcare division and a 34% surge in Animal Healthcare sales. The company attributed this performance to increased tender execution and deeper market penetration in the domestic institutional business. Standalone gross profit margins improved significantly to 78%, up from 68% in the prior year's second quarter, driven by a favorable product mix and operational efficiencies.
Despite the capitalization of the BSL3 Laboratory and Fill Finish facility leading to higher depreciation charges, the core operating profitability remained robust during the quarter.
Gates Foundation Loan Amendment and African Operations
A significant development during the half-year period was the restructuring of debt for Hester Biosciences Africa Limited. Following an agreement with the Bill & Melinda Gates Foundation, the outstanding loan principal was reduced from $12 million to $5 million, and accrued interest was waived. This modification resulted in an exceptional gain of ₹857.68 million recognized in the consolidated results for H1 FY27.
Furthermore, the board has approved an additional unsecured loan of $1 million for the Tanzania-based subsidiary to support ongoing working capital requirements and general corporate purposes, expected to be executed by mid-November 2026.
Strategic Divestments and Market Positioning
- Completed the divestment of the remaining 11% stake in Texas Lifesciences Private Limited during Q2 FY27
- Maintain approximately 75% global market share in the production of the PPR vaccine
- Holds over 70% market share in India for the Goat Pox vaccine used against Lumpy Skin disease
- Biologicals portfolio strengthened through government-led immunization programmes and commercial market expansion
- Promoter holding remains stable at 44.28% as of the September 2026 quarter
Operational Strategy and Vaccine Infrastructure
The health products portfolio within the division, including feed supplements and disinfectant solutions, complements the vaccine business by addressing broader disease prevention and farm health management needs.
What to watch next
- Execution of $1 million unsecured loan to Hester Africa scheduled on or before 15 November 2026
- Operational ramp-up of the newly capitalized BSL3 and Fill Finish facilities through the remainder of FY27
- Regulatory submissions for new poultry and livestock vaccines in international markets
| Share price | ₹2312 |
|---|---|
| Market capitalisation | ₹1,966.80 Cr |
| Revenue (annual) | ₹332.60 Cr |
| Net profit (annual) | ₹55.64 Cr |
| Revenue (latest quarter) | ₹77.24 Cr-22.84% vs previous quarter |
| Net profit (latest quarter) | ₹96.98 Cr+506.81% vs previous quarter |
| P/E (TTM) | 14.44×Sector 37.88× |
| Promoter holding | 44.28%-9.45% QoQ |
| FII holding | 0.3%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Hester Biosciences Limited announcing unaudited standalone and consolidated financial results for the quarter and half-year ended 30 September 2026. Market figures from a third-party data provider.
