Hester Biosciences Q2 profit rises 131% as sales grow 28%

Hester Biosciences Limited reported standalone profit after tax of Rs 16.660 crore for the quarter ended 30 September 2026, up 131.1% from Rs 7.209 crore a year earlier, as revenue from operations rose 28.4% to Rs 82.928 crore. Both Poultry Healthcare and Animal Healthcare recorded higher revenue, while Animal Healthcare returned to a positive segment result.

How did Hester Biosciences perform in Q2?

Hester Biosciences increased standalone revenue from operations to Rs 82.928 crore in the quarter ended 30 September 2026 from Rs 64.579 crore in the corresponding quarter a year earlier. Total income, including Rs 1.675 crore of other income, rose to Rs 84.603 crore from Rs 66.054 crore, while profit before tax increased to Rs 22.339 crore from Rs 9.882 crore.

The company’s post-tax result grew faster than revenue. Profit after tax was Rs 16.660 crore against Rs 7.209 crore in the September 2025 quarter, while basic and diluted earnings per share, or EPS, rose to Rs 19.59 from Rs 8.48. Total comprehensive income reached Rs 16.634 crore, compared with Rs 7.117 crore, after an other comprehensive loss of Rs 0.026 crore in the latest quarter.

Sequentially, revenue rose 14.1% from Rs 72.660 crore in the quarter ended 30 June 2026, and profit after tax increased 13.2% from Rs 14.711 crore. Profit before tax rose from Rs 19.752 crore despite finance cost increasing to Rs 1.697 crore from Rs 1.364 crore in the preceding quarter.

What drove Hester Biosciences revenue growth?

Hester Biosciences’ Poultry Healthcare revenue rose 26.6% year on year to Rs 60.861 crore in the September 2026 quarter from Rs 48.089 crore. Animal Healthcare revenue grew faster, increasing 33.8% to Rs 22.067 crore from Rs 16.490 crore, although Poultry Healthcare remained the larger segment by revenue.

The segment mix shifted from the June 2026 quarter, when Poultry Healthcare revenue was Rs 61.816 crore and Animal Healthcare revenue was Rs 10.844 crore. Poultry Healthcare revenue declined 1.5% sequentially, but Animal Healthcare more than doubled, raising its share of reported quarterly revenue to about 26.6% from about 14.9%, calculated from segment revenue.

Segment profitability also changed. Poultry Healthcare segment result increased to Rs 20.290 crore from Rs 13.456 crore a year earlier, while Animal Healthcare recorded a Rs 7.044 crore segment result after a Rs 2.269 crore loss in the September 2025 quarter. Total segment results consequently rose to Rs 27.334 crore from Rs 11.187 crore before finance cost and unallocable expenditure.

For the six months ended 30 September 2026, Poultry Healthcare revenue rose to Rs 122.677 crore from Rs 89.757 crore in the prior-year period. Animal Healthcare revenue was Rs 32.911 crore, below Rs 38.312 crore a year earlier, so the increase in total six-month revenue to Rs 155.588 crore from Rs 128.069 crore was led by Poultry Healthcare.

How did Hester Biosciences’ costs and profitability change?

Hester Biosciences’ total expenses rose 10.8% to Rs 62.264 crore in the September 2026 quarter from Rs 56.172 crore, below the 28.1% increase in total income. Profit before tax as a proportion of revenue from operations therefore increased to about 26.9% from about 15.3%, based on the reported standalone figures.

Depreciation and amortisation more than doubled to Rs 4.953 crore from Rs 2.201 crore, while finance cost rose 33.4% to Rs 1.697 crore from Rs 1.272 crore. Profit before interest, tax, depreciation and amortisation, calculated as profit before tax plus finance cost and depreciation, was Rs 28.989 crore against Rs 13.355 crore; this equals about 35.0% of revenue compared with about 20.7% a year earlier.

Cost of material consumed increased to Rs 13.506 crore from Rs 9.715 crore, while purchases of stock-in-trade fell to Rs 7.038 crore from Rs 7.840 crore. Inventory changes produced a Rs 2.654 crore credit in the latest quarter, compared with a Rs 3.210 crore expense a year earlier; employee-benefit expense was Rs 13.498 crore against Rs 13.016 crore.

Tax expense rose to Rs 5.679 crore from Rs 2.673 crore, although the increase was smaller than the Rs 12.457 crore rise in profit before tax. This movement meant profit after tax increased 131.1%, slightly faster than the 126.1% increase in profit before tax.

What do Hester Biosciences’ balance sheet and cash flows show?

Hester Biosciences had standalone total assets of Rs 561.135 crore at 30 September 2026, compared with Rs 557.346 crore at 31 March 2026. Total equity increased to Rs 407.169 crore from Rs 385.182 crore, while cash and cash equivalents rose to Rs 4.832 crore from Rs 0.790 crore and inventories increased to Rs 66.960 crore from Rs 59.982 crore.

Borrowings declined over the six-month period. Non-current borrowings fell to Rs 13.240 crore from Rs 21.683 crore, and current borrowings decreased to Rs 49.191 crore from Rs 52.789 crore. Total liabilities were Rs 153.966 crore at 30 September 2026, compared with Rs 172.164 crore at 31 March 2026.

Net cash generated from operating activities was Rs 30.976 crore for the six months ended 30 September 2026, compared with Rs 15.683 crore in the corresponding prior-year period. Capital expenditure was Rs 4.207 crore, dividend payments were Rs 9.346 crore and long-term borrowing repayments were Rs 9.232 crore, resulting in a Rs 4.042 crore increase in cash and cash equivalents.

What funding did Hester Biosciences approve for Hester Africa?

Hester Biosciences approved an unsecured loan of up to USD 1 million for Hester Biosciences Africa Limited, its wholly owned Tanzania subsidiary, in one or more tranches. Hester Africa is to use the funds for business, general corporate and working-capital requirements, subject to applicable laws.

The proposed loan carries interest of 9% a year and has a three-year tenure from the first drawdown. The company said the loan agreement was expected to be executed on or before 15 November 2026, and the outstanding loan amount was nil on the date of the 5 November 2026 disclosure.

Conclusion

Hester Biosciences combined 28.4% standalone quarterly revenue growth with a 131.1% increase in profit after tax for the quarter ended 30 September 2026. Poultry Healthcare provided Rs 60.861 crore of revenue, while Animal Healthcare contributed Rs 22.067 crore and moved from a Rs 2.269 crore segment loss to a Rs 7.044 crore segment result.

The disclosed event to watch next is the expected execution of the up-to-USD 1 million Hester Africa loan agreement on or before 15 November 2026. Its 9% annual interest rate, three-year tenure and working-capital purpose make the timing of drawdowns and use of funds relevant alongside revenue trends in the two operating segments.