The company reported a consolidated net profit of ₹97 crore for the quarter ended June 30, compared with ₹16.4 crore in the year-ago period, according to an exchange filing. Revenue from operations declined 8% year-on-year to ₹77.2 crore from ₹84 crore.
Earnings before interest, tax, depreciation and amortisation (EBITDA) was largely unchanged at ₹22.7 crore versus ₹22.6 crore a year earlier. However, the EBITDA margin improved to 29.4% from 26.9% in the corresponding quarter last year.
The sharp increase in profitability was largely driven by an exceptional accounting gain of ₹85.35 crore recorded during the quarter. The gain arose after Hester Biosciences Africa Ltd (HBAL), the company’s wholly owned subsidiary, amended its loan agreement with the Gates Foundation.
Under the revised terms, the outstanding loan principal was reduced to $5 million from $12 million, all accrued interest was waived and the remaining loan was made interest-free. The company said the modification qualified as a substantial change under Ind AS 109, resulting in the extinguishment of the original liability and recognition of a new liability at fair value, leading to the exceptional gain.
On the operational front, the Poultry Healthcare division continued to perform strongly, with revenue rising to ₹62.13 crore from ₹42.12 crore a year ago. However, revenue from the Animal Healthcare division fell sharply to ₹15.11 crore from ₹41.98 crore.
Hester attributed the decline in its Animal Healthcare business to delays in government-led livestock immunisation programmes, saying the weakness reflected the timing of tender execution rather than any change in underlying demand for biologicals.
Looking ahead, the company said it remains confident about the long-term growth prospects of preventive animal healthcare and will continue strengthening its biologicals portfolio across both Poultry and Animal Healthcare during FY27.
It added that while parts of the business continue to be influenced by the timing of government immunisation programmes and international market conditions, it remains focused on scientific innovation, manufacturing capabilities and disciplined execution to deliver sustainable long-term growth.
Hexaware Tech shares fall 8% on cutting full year revenue growth guidance after Q1 results
