News ArticleHester Biosciences Posts 28% Revenue Growth and 131% Profit Rise in Q2 FY27 Supported by Poultry Healthcare Expansion
Company continues operational efficiency gains with 35% EBITDA margin and advances product development leveraging new BSL-3 lab; consolidated revenue up 38%
Hester Biosciences Limited announced a 28% increase in standalone revenue and a 131% rise in profit after tax for Q2 FY27, driven by improved product mix and operational efficiency. Consolidated revenue grew 38%, supported by strong performance in poultry healthcare and ongoing investment in manufacturing facilities.
Hester Biosciences Limited
Earnings Call Transcript
Hester Biosciences Limited reported a 28% increase in standalone revenue to Q2 FY27 and a 131% rise in profit after tax, driven by growth in its poultry healthcare division and enhanced operational efficiencies. Consolidated revenue grew by 38%, primarily due to the India business, while continued investment in manufacturing and renewable energy projects supports future growth.
The standalone revenue grew by 28% in Q2 and 21% in H1 FY27 over the previous year, with profit after tax (PAT) more than doubling in Q2 and increasing by 108% in H1. Gross profit margins held steady at 78%, and EBITDA margin was maintained at 35% due to disciplined cost management and a favorable product mix.
Poultry Healthcare revenue increased 27% in Q2 and 37% in H1, driven by institutional business focus, market penetration, and scientific engagement. The Animal Healthcare segment saw a 34% revenue rise in Q2 but remained 14% below prior year in H1 reflecting the timing of government immunization programs.
The company emphasized product pipeline development and compliance with evolving regulatory standards, including leveraging its recently capitalized BSL-3 laboratory and fill/finish facility. It also signed a 3-megawatt captive solar power purchase agreement to enhance energy cost efficiency and increase renewable energy use.
International operations remained stable, supplying tenders across Asia and Africa. In Nepal, expected procurement for PPR eradication programs has not met earlier projections, with the company assessing business adjustments accordingly. Hester Africa aims to improve financial sustainability through focused market development supported by a loan amendment with the Gates Foundation.
Highlights
- Standalone Q2 FY27 revenue rose 28%; H1 revenue increased 21% year-on-year.
- Standalone profit after tax grew 131% in Q2 and 108% in H1 FY27.
- Gross profit margin steady at 78%; EBITDA margin maintained at 35%.
- Poultry Healthcare revenue increased 27% in Q2, 37% in H1 FY27.
- Animal Healthcare segment revenue increased 34% in Q2 but was 14% lower in H1 compared to last year.
- Completed capitalization of BSL-3 lab and fill/finish manufacturing facility increased depreciation expense but supports future growth potential. Signed 3 MW solar group captive power purchase agreement to enhance sustainability. Consl.
Key Data Snapshot
What happened
- Hester Biosciences reported a 28% increase in standalone revenue and a 131% rise in profit after tax for Q2 FY27 compared to the previous year.
- Consolidated revenue grew by 38% in Q2 with PAT increasing 44%.
- The profitability improvement continued from Q1 into Q2 with gross profit margin at 78% and EBITDA margin at 35%.
Key details
- Poultry Healthcare division drove revenue growth with 27% increase in Q2 and 37% in H1.
- Animal Healthcare revenue rose 34% in Q2 but was 14% below last year in H1 due to timing of government immunization programs.
- The company is progressing with product development and regulatory approvals, leveraging the new BSL-3 laboratory and fill/finish facility.
- A 3-megawatt captive solar power purchase agreement was signed to improve energy cost efficiency and sustainability.
Financial performance
- Standalone revenue for Q2 FY27 increased by 28% and H1 by 21% over prior year.
- Standalone PAT more than doubled in Q2 and rose 108% in H1 FY27.
- Gross profit margin remained at 78% for both Q2 and H1 FY27.
- EBITDA margin steady at 35% due to higher sales and cost discipline.
- Consolidated revenue grew 38% in Q2 and 13% in H1 primarily supported by India business.
Business impact
- Continued focus on institutional business, market penetration, and scientific engagement supports growth in poultry healthcare.
- Regulatory standards for animal healthcare products are becoming more rigorous, potentially extending development timelines.
- International sales stable with tender and institutional supplies; challenges faced in Nepal PPR eradication program expected procurement levels.
- Hester Africa's amended loan agreement with Gates Foundation supports financial sustainability and market development.
Highlights
- Standalone Q2 FY27 revenue rose 28%; H1 revenue increased 21% year-on-year.
- Standalone profit after tax grew 131% in Q2 and 108% in H1 FY27.
- Gross profit margin steady at 78%; EBITDA margin maintained at 35%.
- Poultry Healthcare revenue increased 27% in Q2, 37% in H1 FY27.
- Animal Healthcare segment revenue increased 34% in Q2 but was 14% lower in H1 compared to last year.
- Completed capitalization of BSL-3 lab and fill/finish manufacturing facility increased depreciation expense but supports future growth potential. Signed 3 MW solar group captive power purchase agreement to enhance sustainability. Consl.
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
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