974% Profit Growth: Stock Skyrockets 15% After Announcing Q4 Results and Dividend

Synopsis: The share of this company jumped 15.1 after strong Q4 results, driven by sharp profit expansion, robust poultry healthcare growth, and improved margins, alongside a major turnaround in profitability.

The shares of this company, which is a leading Indian animal healthcare company and the second-largest poultry vaccine manufacturer in India, gained investor traction after posting strong Q4 numbers.

With a market capitalization of Rs 1,590 crore, Hester Biosciences Ltd’s shares on Friday made a day high of Rs 1,997.95 per share, up 15.1 percent from its previous day’s close price of Rs 1,735.65 per share. The share of this company gave a negative return of 26 percent over the last five years.

Results Overview and Dividend

• QoQ view: Revenue from operations rose from Rs 77.4 crore in Q3 FY26 to Rs 100.10 crore in Q4 FY26, marking a growth of around 29.33 percent. Profit before tax increased sharply from Rs 13.5 crore to Rs 25.08 crore, up about 85.87 percent, reflecting strong operating leverage. Profit after tax also improved from Rs 9.31 crore to Rs 16.54 crore, a rise of nearly 77.69 percent, indicating sustained profitability expansion across the quarter. 
• YoY View: Revenue from operations rose by 22.2 percent from Rs 81.92 crore in Q4 FY25 to Rs 100.10 crore in Q4 FY26. Profit before tax increased by 85.6 percent from Rs 13.52 crore in Q4 FY25 to Rs 25.08 crore in Q4 FY26, reflecting strong operating performance. Profit after tax surged sharply by 974 percent from Rs 1.54 crore in Q4 FY25 to Rs 16.54 crore in Q4 FY26, indicating a significant improvement in bottom-line growth. 
• Fiscal year comparison: revenue from operations increased by 7 percent, from Rs 311 crore in FY25 to Rs 332.59 crore in FY26. Profit before tax rose by 91.99 percent in FY from Rs 39.5 crore in FY25 to Rs 75.83 crore in FY26. 
• Profit after tax increased by 99.58 percent in FY from Rs 28.8 crore in FY25 to Rs 57.48 crore in FY26. EPS grew by 99.39 percent in FY from Rs 33.89 crore in FY25 to Rs 67.57 crore in FY26. 
• Dividend: The company has recommended a dividend of Rs 11 per equity share of face value Rs 10 for FY26, translating to 110 percent payout, subject to approval by shareholders at the upcoming Annual General Meeting.

Segment Performance in Q4

• Poultry Healthcare Growth The Poultry Healthcare division delivered strong growth momentum in Q4 FY26, with revenue rising to Rs 65.02 crore from Rs 46.09 crore in the same period last year, up 41 percent YoY. Growth was driven by deeper market penetration, higher vaccine demand, and new avian influenza licensing approvals, supporting overall segment expansion.
• Animal Healthcare Headwinds The Animal Healthcare division continued to face pressure in FY26, with revenue declining 32 percent YoY to Rs 81.83 crore. Performance was impacted by delays in government-led immunization programs and uneven demand across commercial channels, though the segment remains strategically important for long-term portfolio stability.
• Other Operating Income Surge Other operating income rose sharply to Rs 4.23 crore in FY26 from Rs 0.14 crore in FY25, supported by milestone-linked grant income from development programs. Additionally, the company secured marketing and manufacturing licenses for its H9N2 Avian Influenza vaccine, further strengthening its poultry vaccine capabilities.
• Conclusion: Margins continued to improve in Q4 FY26 and FY26, supported by a better product mix, operational efficiency gains, and milestone-linked grant income. Overall performance was also driven by strong contributions from the Poultry Healthcare business, cost optimisation initiatives, disciplined working capital management, and ongoing infrastructure expansion efforts.

About the business

Hester Biosciences Ltd is a leading Indian animal healthcare company and the second-largest poultry vaccine manufacturer in India, holding roughly 30-35% market share. Founded in 1987 in Ahmedabad, Gujarat, it is a global player in animal biologicals, manufacturing vaccines for poultry, pets, and livestock, with a presence in over 30+ countries.

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