Hester Biosciences Reports Strong FY26 Growth, Recommends ₹11 Dividend

Hester Biosciences reported strong financial results for fiscal year 2026:

• Consolidated Revenue: ₹3,325.99 Million
• Consolidated Profit After Tax (PAT): ₹574.84 Million

FY26 Financial Results

Hester Biosciences announced its audited financial results for the fiscal year ended March 31, 2026. The company reported a significant increase in consolidated profit after tax, reaching ₹574.84 million, up from ₹288.26 million in FY25. Consolidated revenue for FY26 stood at ₹3,325.99 million, showing growth compared to ₹3,111.02 million in the prior fiscal year. The Board of Directors has recommended a dividend of ₹11 per equity share, equivalent to 110%, for FY26, subject to shareholder approval. Ms. Priya Gandhi has been re-appointed as Executive Director for a three-year term, effective October 28, 2026, ensuring leadership continuity.

Strategic Growth and Stability

The strong financial performance supports Hester's strategic initiatives, including expansion of its poultry healthcare portfolio. This is further strengthened by new licenses for the H9N2 Avian Influenza vaccine. Ms. Gandhi's reappointment is key for consistent execution of the company's focus on operational improvements and capacity expansion.

Company Background

Hester Biosciences is a key player in India's animal health sector, manufacturing and marketing veterinary vaccines and pharmaceuticals for poultry, livestock, and companion animals with a global presence. The company strategically acquired Alivira Animal Health's India business for ₹26.5 crore in October 2023, enhancing its market footprint. Plans are also underway to expand manufacturing capacity at its Gujarat facility, signalling future growth ambitions.

Impact for Shareholders and Operations

Shareholders can expect a recommended dividend of ₹11 per share for FY26, subject to final approval. Ms. Priya Gandhi's reappointment reinforces management stability, crucial for steering strategic execution and operational improvements. The company's focus on acquiring new vaccine licenses, such as for H9N2 Avian Influenza, positions it for deeper penetration in the poultry healthcare market. Ongoing efforts in operational strengthening and capacity expansion are expected to drive future efficiency and potentially boost profitability.

Key Risks and Challenges

Consolidated profitability in FY26 benefited from foreign exchange gains and other one-time financial items. These gains may not recur, posing a risk to future earnings consistency. The Animal Healthcare Division faces ongoing challenges, including delays in government immunisation programs and fluctuating demand, which could impact revenue.

Industry Context: Peer Comparison

Hester Biosciences operates within the specialized animal health and veterinary pharmaceuticals niche. Unlike diversified agribusinesses such as Godrej Agrovet, whose revenues are substantially driven by animal feed, Hester's focus is more concentrated. While Zydus Lifesciences also has a dedicated animal health division, Hester Biosciences is solely focused on veterinary products, allowing for specialized expertise and market development. For FY26, Hester Biosciences reported consolidated revenue of approximately ₹332.6 crore and PAT of ₹57.5 crore. In comparison, Godrej Agrovet's FY23 revenue exceeded ₹3,700 crore, and Zydus Lifesciences' FY24 revenue surpassed ₹17,000 crore, with its animal health segment being a smaller part of its overall business.

Detailed Performance Metrics

• Standalone Total Income grew from ₹2,912.30 million in FY25 to ₹2,997.71 million in FY26.
• Standalone Profit After Tax more than doubled, from ₹318.42 million in FY25 to ₹521.00 million in FY26.
• Consolidated Total Income increased from ₹3,111.02 million in FY25 to ₹3,325.99 million in FY26.
• Consolidated Profit After Tax surged from ₹288.26 million in FY25 to ₹574.84 million in FY26.

What to Watch Next

• Shareholder approval at the upcoming Annual General Meeting for the recommended dividend of ₹11 per share.
• The official commencement date of Ms. Priya Gandhi's re-appointed term as Executive Director on October 28, 2026.
• Progress in securing further market licenses and expanding reach for the newly acquired H9N2 Avian Influenza vaccine.
• Management's strategy and commentary on mitigating challenges faced by the Animal Healthcare Division, such as government program delays.
• Performance updates on new initiatives and the impact of capacity expansion projects.