Hester Bios Q2 FY27 Results (NSE: HESTERBIO)
Signal: Margin expansion
The read
The operating trajectory improved sharply: revenue grew 38.0% YoY and EBITDA margin expanded 1685bps to 33.36%, led by Animal Healthcare's turnaround, while the consolidated PAT headline remains partly distorted by exceptional gains across the first half.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹97.91 Cr | +38.0% | +26.8% |
| EBIT | ₹25.58 Cr | +247.3% | |
| Net profit | ₹20.63 Cr | +43.9% | |
| EPS | ₹23.94 | +42.1% | |
| EBIT margin | 33.36% |
P&L walk
Revenue rose 38.0% YoY and EBITDA margin expanded to 33.36% as gross margin improved to 77.70%; PAT of ₹206.31 million also included a ₹4.19 million exceptional gain.
Segments
Animal Healthcare was the main inflection, with revenue up 55.3% YoY to ₹356.48 million and segment result turning profitable at ₹96.33 million from a ₹41.85 million loss sequentially; Poultry Healthcare remained profitable but its result fell 15.0% sequentially.
Key positives
- Animal Healthcare revenue rose 55.3% YoY to ₹356.48 million and segment result turned positive at ₹96.33 million from a ₹41.85 million sequential loss.
- Gross margin expanded 493bps YoY to 77.70% as raw material and traded-goods costs rose 13.0%, well below revenue growth of 38.0%.
- Operating cash flow increased to ₹490.00 million from ₹174.78 million YoY, while net debt declined to ₹785.89 million from ₹1,854.88 million at year-end.
Key concerns
- Depreciation rose 62.5% YoY to ₹70.77 million despite PPE declining to ₹3,970.21 million, creating a depreciation-to-asset-base cross-check flag.
- Poultry Healthcare segment result declined 15.0% sequentially to ₹206.70 million despite broadly flat sequential revenue.
- Consolidated finance cost rose 35.3% YoY to ₹29.85 million even as borrowings declined materially.
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