Future growth expectations in sales/revenue/volumes?

Next half of FY26 expected to show stronger performance, covering up for the subdued Q2 results. Strategic focus on reducing dependency on tender-based revenues, aiming for a more balanced portfolio. Poultry healthcare division showing volume-led growth: 18% in Q2 and 10% in H1 FY26. New vaccine launches, such as H9N2 and avian influenza vaccine (post-manufacturing license expected by December), to enhance export and domestic sales. Pet Care segment expected to grow steadily, leveraging existing capacities without major capex. Anticipated launch of Lumpy Skin Disease (LSD) vaccine in India by

Future growth expectations in earnings/operating earnings/profits/EPS?

The company anticipates stronger performance in the second half of FY26, aiming to cover up for a relatively damp Q2. Focus on increasing vaccine production capacity with a new plant expected to be fully capitalized by March, doubling capacity depending on product mix. Strategic focus on reducing dependence on tender-based revenues to create a balanced and resilient portfolio. Growth expected through expansion in Pet Care vaccines and deeper penetration in commercial, private, and export markets. Hester aims to achieve breakeven in Africa operations by FY28, with ongoing strengthening in inter

Current/ Expected Orderbook/ Pending Orders?

The current quarter witnessed delays in government-led immunization programs for PPR and Lumpy Skin Disease, impacting order execution and causing a 50% degrowth in Animal Healthcare division in Q2. These delays are timing-related and not due to lack of demand; a pickup in orders is anticipated particularly in Q4 as execution timelines normalize. Nepal operations were affected by timing of institutional orders and temporary disturbances but expect institutional execution to resume in H2. There is readiness at Hester Biosciences to meet rollout demands once government programs restart. No speci

Any current/future new fundraising through debt or equity?

No major new capex planned for the next 2-3 years in the current segments, implying limited need for fresh fundraising through debt or equity for expansion in those areas. Existing debt repayments are being made as per schedule; while fast repayment is a goal, some cash may be used for minor renovations or regulatory compliance. No explicit mention of any planned new fundraising through debt or equity in the discussed transcript. Capital work in progress of INR182 crore at the India plant is expected to be fully capitalized by March, funded through existing resources. Management indicates focu

Any current/future capex/capital investment/strategic investment?

No major new capex planned for the next 2-3 years in the current segment; existing capacities provide a huge runway based on demand (Rajiv Gandhi, Page 12). Some smaller capex will occur as part of progress and renovations in existing plants, but no large-scale investments anticipated (Rajiv Gandhi, Page 12). Capital work in progress of INR182 crore at India plant expected to be fully capitalized by March, which will significantly enhance production capacity (Priya Gandhi, Page 3). Routine capital expenditure planned for the coming years apart from the existing expansion (Priya Gandhi, Page 9)

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Hester Biosciences LtdQ3 FY25Pharmaceuticals & Biotechnology

Hester Biosciences Ltd Q3 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹1,953P/E: 38.0Market Cap: ₹1.6K CrSector: Pharmaceuticals & Biotechnology

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Order

N/A

Capex

0 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Next half of FY26 expected to show stronger performance, covering up for the subdued Q2 results.
→Strategic focus on reducing dependency on tender-based revenues, aiming for a more balanced portfolio.
→Poultry healthcare division showing volume-led growth: 18% in Q2 and 10% in H1 FY26.
→New vaccine launches, such as H9N2 and avian influenza vaccine (post-manufacturing license expected by December), to enhance export and domestic sales.
→Pet Care segment expected to grow steadily, leveraging existing capacities without major capex.
→Anticipated launch of Lumpy Skin Disease (LSD) vaccine in India by mid-next financial year.
→Africa operations on track to breakeven by FY28, with long-term positioning expected to strengthen.
→Capacity expansion from capital work in progress to be commercialized by March, enabling significant vaccine production scale-up.

Margin guidance

Category 3

→The company anticipates stronger performance in the second half of FY26, aiming to cover up for a relatively damp Q2.
→Focus on increasing vaccine production capacity with a new plant expected to be fully capitalized by March, doubling capacity depending on product mix.
→Strategic focus on reducing dependence on tender-based revenues to create a balanced and resilient portfolio.
→Growth expected through expansion in Pet Care vaccines and deeper penetration in commercial, private, and export markets.
→Hester aims to achieve breakeven in Africa operations by FY28, with ongoing strengthening in international markets.
→Operational discipline, cost control, and product diversification to drive margin stability and sustainable growth.
→Debt repayment will continue as per schedule, supporting financial health and future growth investments.
→Introduction of new vaccines like H9N2 and eventual launch of Lumpy Skin Disease vaccine expected to boost revenues.

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Fundraise plans

→No major new capex planned for the next 2-3 years in the current segments, implying limited need for fresh fundraising through debt or equity for expansion in those areas.
→Existing debt repayments are being made as per schedule; while fast repayment is a goal, some cash may be used for minor renovations or regulatory compliance.
→No explicit mention of any planned new fundraising through debt or equity in the discussed transcript.
→Capital work in progress of INR182 crore at the India plant is expected to be fully capitalized by March, funded through existing resources.
→Management indicates focus on operational discipline and process standardization rather than seeking external funds currently.

Order book

→The current quarter witnessed delays in government-led immunization programs for PPR and Lumpy Skin Disease, impacting order execution and causing a 50% degrowth in Animal Healthcare division in Q2.
→These delays are timing-related and not due to lack of demand; a pickup in orders is anticipated particularly in Q4 as execution timelines normalize.
→Nepal operations were affected by timing of institutional orders and temporary disturbances but expect institutional execution to resume in H2.
→There is readiness at Hester Biosciences to meet rollout demands once government programs restart.
→No specific quantified current order book or pending orders figure was given, but management highlighted significant demand waiting to be fulfilled once institutional program activities resume.

Capex plans

→No major new capex planned for the next 2-3 years in the current segment; existing capacities provide a huge runway based on demand (Rajiv Gandhi, Page 12).
→Some smaller capex will occur as part of progress and renovations in existing plants, but no large-scale investments anticipated (Rajiv Gandhi, Page 12).
→Capital work in progress of INR182 crore at India plant expected to be fully capitalized by March, which will significantly enhance production capacity (Priya Gandhi, Page 3).
→Routine capital expenditure planned for the coming years apart from the existing expansion (Priya Gandhi, Page 9).
→Pet Care vaccines to be introduced using existing manufacturing facilities without major additional capex; exploring licensing opportunities before setting up dedicated facilities (Priya Gandhi, Page 6).
→Overall focus is on operational discipline, cost control, and making the business structurally stronger rather than new large capex (Priya Gandhi, Page 3).

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