Hester Biosciences shares gained 2.87% to ₹2,568.50 on NSE following the company's strong first-quarter results. The animal healthcare company reported a consolidated net profit of ₹96.98 crore for Q1FY27, representing a 489.90% year-on-year increase from ₹16.44 crore in Q1FY26. According to latest reports, this remarkable profit surge was primarily driven by an exceptional accounting gain of ₹853.49 crore from the restructuring of a Gates Foundation loan. The exceptional gain arose after Hester Biosciences Africa Ltd (HBAL), the company's wholly owned subsidiary, amended its loan agreement with the Gates Foundation, reducing the outstanding loan principal from $12 million to $5 million while waiving all accrued interest and making the remaining loan interest-free.
The company's standalone business demonstrated robust growth with revenue from operations rising 14% to ₹726.60 crore from ₹634.90 crore in Q1FY26, while standalone profit after tax surged 88% to ₹147.11 crore compared to ₹78.38 crore in the corresponding quarter last year. As reported by latest financial data, the Poultry Healthcare division continued to be the leading growth engine with 48% division-level revenue expansion to ₹617.69 crore, driven by higher institutional business and deeper domestic penetration. However, the Animal Healthcare division experienced a 50% revenue decline to ₹108.44 crore, attributed to delays in government-led immunisation programme tender executions rather than demand shifts. The divergence between standalone and consolidated performance highlights the impact of international market variability, with consolidated revenues declining 8% due to lower contributions from Nepal and Africa operations.
On a standalone basis, Hester Biosciences demonstrated exceptional operational efficiency with standalone EBITDA expanding 95% to ₹260.34 crore and margins improving significantly to 36% from 21% in the prior year quarter. The company's gross profit margins also widened to 78% from 69%, supported by a favourable product mix and operational efficiencies. At the consolidated level, EBITDA surged to ₹111.81 crore from ₹26.18 crore year-on-year, with margins expanding dramatically to 145% from 31%, reflecting the impact of the exceptional gain. However, excluding the exceptional item, the profit before tax stood at ₹163.33 crore, down from ₹201.87 crore in the corresponding quarter last year, highlighting pressure on core profitability despite the overall boost from the one-time gain.
Looking ahead, Hester Biosciences has outlined its strategic priorities for FY27, focusing 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. The company emphasized its commitment to maintaining its market leadership positions, including holding around 75% of the global PPR vaccine market share and more than 70% market share in Goat Pox vaccine in India. As India's leading animal healthcare company engaged in manufacturing vaccines and health products, Hester Biosciences operates through Poultry Healthcare and Animal Healthcare divisions and is the world's largest manufacturer of PPR vaccine, while also being the country's second-largest poultry vaccine manufacturer with around 35% market share. The company remains dedicated to its core strategy of "Building with Intent. Growing with Science," with capital directed toward research and development for new products, regulatory submissions, and optimization of its newly commissioned manufacturing facilities.
