Hester Biosciences has reported a sharp jump in profitability in the December quarter, driven by robust growth in its Poultry Healthcare business, even as delays in government immunisation programmes weighed on its animal healthcare portfolio.
On a standalone basis, the company’s Q3 FY26 revenue rose 12% year-on-year to Rs. 70.35 crore, while profit after tax surged 140% to Rs. 10.66 crore. For the nine-month period ended FY26, revenue declined 5% to Rs. 198.42 crore, but profit still increased 16%, underscoring improved operating leverage and margin expansion.
The Poultry Healthcare Division delivered a strong performance, posting 32% revenue growth in Q3 FY26 and 17% growth over the nine-month period. The growth was driven by deeper market penetration, improved product placements, sustained vaccine demand, and stronger field execution supported by expanded distributor coverage and technical engagement with customers.
After the quarter closed, Hester received marketing and manufacturing licences for its H9N2 Avian Influenza vaccine, marking a key regulatory milestone and strengthening its poultry vaccine portfolio.
In contrast, the Animal Healthcare Division saw revenues decline 38% in Q3 FY26 and 40% over 9M FY26, largely due to delays in government-led immunisation programmes in the ruminant segment, particularly PPR and Goat Pox linked to Lumpy Skin Disease control.
The company said execution of PPR orders under the national immunisation programme is expected to commence in February 2026, which is likely to contribute meaningfully to Q4 performance. The Petcare segment continued to scale gradually, but remains at an early stage and was insufficient to offset deferred institutional revenues.
Standalone gross margins improved to 70% in Q3 FY26, aided by a favourable product mix and cost management initiatives. EBITDA rose 72% year-on-year to Rs. 17.75 crore, while EBITDA margins expanded to 25%. The company attributed the gains to improved operating leverage and higher contribution from the Poultry Healthcare Division, alongside disciplined control over overheads and manpower deployment.
During the quarter, Hester also capitalised its fill-finish facility, effectively doubling drug product capacity and enhancing manufacturing flexibility to support future domestic and export growth.
On a consolidated basis, which includes subsidiaries in Nepal and Tanzania, Q3 FY26 revenue rose 22% to Rs. 77.41 crore, but profit after tax declined 18% to Rs. 9.31 crore. For 9M FY26, consolidated revenue increased marginally by 1% to Rs. 232.48 crore, while profit surged 50% to Rs. 40.93 crore.
Hester Nepal posted a net profit of Rs. 0.7 crore in Q3 FY26 and Rs. 1.52 crore over 9M FY26, supported by execution of institutional orders and stable operating conditions. Hester Africa reported a Q3 loss of Rs. 3.88 crore due to order execution delays and higher operating costs, but returned to profitability over the nine-month period with a profit of Rs. 6.4 crore as order flows improved across select markets.
