Hester Biosciences Surges 7% as Q2 Net Profit Jumps 41% and EBITDA Margins
Shares of Hester Biosciences, a leading veterinary vaccine and animal healthcare manufacturer, witnessed aggressive accumulation on Thursday, November 5, 2026, surging more than 7% on Dalal Street following the announcement of an outstanding second-quarter financial performance for fiscal year 2026-27. The company's consolidated net profit after tax climbed 41% year-on-year to ₹20.3 crore (₹203 million), up from ₹14.4 crore (₹144 million) reported in the corresponding period of the previous fiscal year. Consolidated revenue from operations mirrored the strong operational momentum, expanding 38% to ₹98 crore compared to ₹71 crore recorded twelve months prior. Underpinning the earnings upswing was an explosive 187% year-on-year surge in operational EBITDA, which escalated to ₹33 crore from ₹11.5 crore, pushing the company’s operating EBITDA margin to a notable 33.4% against 16.2% in the year-ago period.
Margin Expansion and Product Mix: Gross Margins Hit 78% on Operational Efficiency
The pronounced profitability turnaround was anchored by a favorable product mix and disciplined cost optimization across production facilities. Hester Biosciences disclosed that its gross profit margin expanded to 78% for both the second quarter and the cumulative first half of the current fiscal year, marking a sharp advance over the 68% recorded in the second quarter and 69% in the first half of the previous fiscal year. Management credited proactive operational recalibrations, improved manufacturing yields, and focused distribution of high-margin therapeutics for shielding the company against cost headwinds, allowing higher sales volumes to translate directly into substantial operating leverage and cash flow expansion.
Poultry Momentum and Tender Execution: Segmental Growth Drives Dual Revenue Streams
On the operational front, performance was led by the poultry healthcare division, which delivered a 27% year-on-year revenue expansion in the second quarter, building on an aggregate 37% top-line growth across the first half of the financial year. The vertical gained significant traction from strengthened institutional partnerships, wider retail distribution reach, and expanding demand for preventative farm health products, including advanced feed supplements and biosecurity disinfectants that complement the core poultry vaccine catalog. Concurrently, the animal healthcare division posted a 34% revenue increase during the quarter, propelled by an accelerated execution timeline for pending orders under state and central government vaccination tenders. While seasonal delivery schedules for public livestock immunization campaigns had contributed to a 14% decline in first-half animal health revenue due to subdued off-take in the opening quarter, the company affirmed that ongoing investments into new biological formulations and commercial open-market channels will provide durable long-term revenue visibility.
