Hester Biosciences FY26 Consolidated PAT Surges 99%; INR 11 Dividend Recommended

Hester Biosciences announced its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The Board of Directors, in their meeting held on May 15, 2026, approved the results and recommended a dividend of INR 11 per equity share (110%) for the financial year 2025-26, subject to shareholder approval at the ensuing Annual General Meeting. The company filed its Corporate Presentation for FY 2025-26 with the stock exchanges on May 15, 2026. Subsequently, on May 18, 2026, the company submitted newspaper clippings of the published extract of its consolidated audited financial results to BSE Limited and National Stock Exchange of India Limited, confirming publication in the Ahmedabad edition of Financial Express (English) and Financial Express (Gujarati) on May 16, 2026. Statutory auditors Chandulal M. Shah & Co. issued an unmodified opinion on both the standalone and consolidated audited financial results.

Standalone Financial Performance

For the financial year ended March 31, 2026, Hester Biosciences reported standalone revenue from operations of INR 2,921.36 million, a 2% increase compared to INR 2,864.66 million in the previous year. Profit after tax (PAT) for the year surged by 64% to INR 521.00 million from INR 318.42 million in FY25. EBITDA for FY26 stood at INR 871.03 million, up 56% YoY, with an EBITDA margin of 30% compared to 19% in FY25. For the quarter ended March 31, 2026, standalone revenue stood at INR 937.13 million — up 22% YoY — while PAT increased significantly to INR 263.84 million from INR 96.35 million in the corresponding quarter of the previous year.

Metric (INR Million): Year Ended 31 March 2026 Year Ended 31 March 2025 Change (%) Revenue from Operations: 2,921.36 2,864.66 +2% Total Income: 2,997.71 2,912.30 +3% EBITDA: 871.03 557.08 +56% Profit Before Tax: 696.82 417.60 +67% Profit After Tax: 521.00 318.42 +64% EPS (INR, Basic & Diluted): 61.24 37.43 +64%

Standalone Segment Performance

The Poultry Healthcare Division was the primary growth driver, with standalone segment revenue rising 24% YoY to INR 2,060.79 million in FY26 from INR 1,664.39 million in FY25, supported by improved market penetration, expanded placements, and sustained vaccine demand. The Animal Healthcare Division recorded a revenue decline to INR 818.32 million from INR 1,198.83 million in FY25, impacted by delays in government immunisation programmes and uneven demand across certain commercial markets. During the quarter, the company received marketing and manufacturing licences for its H9N2 Avian Influenza vaccine, further strengthening its poultry vaccine portfolio. On a standalone basis, Poultry Healthcare contributed 71% of divisional revenue and Animal Healthcare contributed 29% for FY 2025-26.

Segment Revenue (INR Million): Q4 FY26 Q4 FY25 Change (%) FY26 FY25 Change (%) Poultry Healthcare: 650.20 460.85 +41% 2,060.79 1,664.39 +24% Animal Healthcare: 286.41 305.37 -6% 818.32 1,198.83 -32% Total Divisional Product Sales: 936.61 766.22 +22% 2,879.11 2,863.22 +1% Other Operating Income: 0.52 0.50 +4% 42.25 1.44 — Revenue from Operations: 937.13 766.72 +22% 2,921.36 2,864.66 +2%

Standalone Profitability

The following table presents the standalone profitability metrics for Q4 and FY26:

Metric (INR Million): Q4 FY26 Q4 FY25 Change (%) FY26 FY25 Change (%) Gross Profit Margin: 78% 66% +12% 72% 67% +5% EBITDA: 426.40 147.60 +189% 871.03 557.08 +56% EBITDA%: 46% 19% +27% 30% 19% +11% PAT: 263.84 96.35 +174% 521.00 318.42 +64% PAT%: 28% 13% +15% 18% 11% +7% EPS (INR, not annualised): 31.01 11.33 +174% 61.24 37.43 +64%

Standalone Balance Sheet Highlights

As at March 31, 2026, standalone total assets stood at INR 5,573.46 million compared to INR 5,459.96 million in the prior year. Total equity increased to INR 3,851.82 million from INR 3,390.87 million, supported by higher retained earnings. Non-current borrowings declined to INR 216.83 million from INR 513.12 million, reflecting significant debt repayment during the year. Standalone cash and cash equivalents at year-end stood at INR 7.90 million, with net cash generated from operating activities of INR 509.20 million for the year.

Parameter (INR Million): 31 March 2026 31 March 2025 Total Assets: 5,573.46 5,459.96 Total Equity: 3,851.82 3,390.87 Non-current Borrowings: 216.83 513.12 Current Borrowings: 527.89 529.55 Cash and Cash Equivalents: 7.90 5.45 Net Cash from Operations: 509.20 639.71

Consolidated Results

On a consolidated basis, revenue from operations for FY26 rose by 7% to INR 3,325.99 million from INR 3,111.02 million in the prior year. Consolidated PAT for the year grew by 99% to INR 574.84 million, compared to INR 288.26 million in FY25. Consolidated EBITDA stood at INR 1,056.51 million, up 53% YoY, with an EBITDA margin of 32% versus 22% in FY25. For the quarter ended March 31, 2026, the company reported consolidated revenue of INR 1,001.10 million (up 22% YoY) and a PAT of INR 165.46 million, compared to INR 15.41 million in Q4 FY25 — a growth of 974%. Consolidated total income for FY26 stood at INR 3,422.83 million versus INR 3,150.26 million in FY25, with paid-up equity share capital of INR 85.07 million and reserves and surplus of INR 3,517.28 million. On a consolidated basis, Poultry Healthcare contributed 62% of divisional revenue and Animal Healthcare contributed 38% for FY 2025-26. Consolidated performance was supported by improved operational execution and stronger profitability across key business segments, with consolidated profitability also benefiting from foreign exchange gains and exceptional financial items during the year.

Metric (INR Million): Q4 FY26 Q4 FY25 Change (%) FY26 FY25 Change (%) Revenue from Operations: 1,001.10 819.25 +22% 3,325.99 3,111.02 +7% Gross Profit Margin: 81% 75% +6% 75% 72% +3% EBITDA: 360.97 135.41 +167% 1,056.51 690.76 +53% EBITDA%: 36% 17% +19% 32% 22% +10% PAT: 165.46 15.41 +974% 574.84 288.26 +99% PAT%: 17% 2% +15% 17% 9% +8% EPS (INR, not annualised): 19.45 1.82 +974% 67.57 33.89 +99%

Consolidated Balance Sheet Highlights

On a consolidated basis, total assets as at March 31, 2026 stood at INR 6,779.41 million compared to INR 6,533.85 million in the prior year. Total equity increased to INR 3,677.89 million from INR 3,266.56 million. Non-current borrowings declined to INR 899.64 million from INR 1,333.68 million, while consolidated cash and cash equivalents at year-end stood at INR 27.67 million. Net cash generated from consolidated operating activities for the year was INR 641.41 million.

Parameter (INR Million): 31 March 2026 31 March 2025 Total Assets: 6,779.41 6,533.85 Total Equity: 3,677.89 3,266.56 Non-current Borrowings: 899.64 1,333.68 Cash and Cash Equivalents: 27.67 55.87 Net Cash from Operations: 641.41 645.11

Five-Year Financial Trend

The corporate presentation highlights a multi-year financial performance trajectory for Hester Biosciences, with FY 2025-26 marking a significant improvement in both sales and profitability compared to prior years.

Fiscal Year: Standalone Sales (INR Cr) Consolidated Sales (INR Cr) Standalone PAT (INR Cr) Consolidated PAT (INR Cr) 2021-22: 219.35 235.01 39.52 39.48 2022-23: 254.00 266.09 32.34 28.04 2023-24: 285.16 304.55 27.16 21.17 2024-25: 286.47 311.10 31.84 28.83 2025-26: 292.14 332.60 52.10 57.48

Operational Updates

During the quarter, the company capitalised its BSL-3 facility as part of its ongoing capacity expansion and infrastructure strengthening initiatives. The company is also undertaking optimisation of certain manufacturing infrastructure in line with current operational and scale-up requirements, with focus on improving utilisation efficiency and operating cost structure. The Board of Directors, at its meeting dated March 11, 2026, approved the divestment of 43.81% equity shareholding out of 54.81% in its subsidiary, Texas Lifescience Private Limited (TLPL), by way of sale/transfer of 2,163,377 equity shares of INR 10 each at a price of INR 42.34 per share to an entity affiliated to existing promoter shareholders of TLPL. TLPL ceased to be a subsidiary of the company from March 27, 2026 onwards. The company also continued participation in the GALVmed-led VITAL 2 programme — focused on enabling sustainable market-driven ruminant vaccine delivery and increasing vaccine adoption across Kenya, Nigeria and Tanzania — while overseas operations continued to witness mixed market conditions with the company strengthening its presence across selected African and export markets during the year.

Manufacturing Infrastructure

Hester Biosciences operates three manufacturing plants across India, Nepal, and Africa, with a combined global footprint spanning 35+ countries. The following table summarises the key manufacturing details:

Parameter: Hester India (Mehsana, Gujarat) Hester Nepal (Kathmandu) Hester Africa (Kibaha, Tanzania) Annual Capacity: 8.6 Billion Doses 1.24 Billion Doses 1.5 Billion Doses Employee Strength: 500+ 40+ 60+ Certifications: WHO-GMP, GLP, ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 GMP Certification (DDA Nepal), AU-PANVAC Quality Certification, ISO 9001:2015 GMP Accreditation (TMDA Tanzania)

Board Decisions

In addition to approving the financial results and recommending the dividend of INR 11 per equity share, the Board approved the re-appointment of Ms. Priya Gandhi as Executive Director for a period of three years with effect from October 28, 2026, up to March 31, 2029 (both days inclusive), subject to member approval by means of a special resolution, as recommended by the Nomination and Remuneration Committee. Ms. Gandhi has been associated with the company since 2016 and holds an undergraduate degree from Srishti Manipal Institute of Art, Design and Technology, Bengaluru, and a Postgraduate degree in Management for Family Business from the Indian School of Business (ISB), Hyderabad. She is the daughter of Mr. Rajiv Gandhi, CEO & Managing Director, and niece of Mr. Sanjiv Gandhi, Non-Executive Director. Her areas of focus include operational alignment, business expansion, corporate communications, branding, and strengthening strategic partnerships.

About Hester Biosciences

Hester Biosciences Limited is one of India's leading animal health companies, manufacturing vaccines and health products since 1997. The company operates through two divisions — Poultry Healthcare and Animal Healthcare (which includes Ruminants and Pet health segments). It is the world's largest manufacturer and supplier of PPR vaccine with approximately 75% of the world market share, and holds over 70% market share in Goat Pox vaccine in India. It is the second largest poultry vaccine manufacturer in India with approximately 35% market share. Hester's vaccine capabilities include multiple platforms such as Chick Embryo Origin, Continuous Cell line, Tissue Culture and Fermentation based live as well as inactivated vaccines.

Hester Biosciences Limited has received requests from promoter-category shareholders Mr. Ravin Gandhi and Ms. Bela Gandhi to reclassify their status to the "Public" category under Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company disclosed this development to the stock exchanges on 15 May 2026, confirming that the requests were submitted via letters dated 14 May 2026. The company is undertaking necessary steps to process these requests in accordance with applicable regulatory provisions.

Reclassification Request Details

The individuals seeking reclassification hold significant shareholding in the company. The details of their equity shares and voting rights are summarised below:

Parameter: Mr. Ravin Gandhi Ms. Bela Gandhi Equity Shares Held: 403,320 400,635 % of Total Voting Rights: 4.74% 4.71% Current Category: Promoter Promoter Requested Category: Public Public Date of Request Letter: 14 May 2026 14 May 2026

Rationale for Reclassification

Mr. Ravin Gandhi stated that he resigned from the Board of Directors on 12 May 2026, a resignation accepted by the company on the same date. He confirmed that he is no longer associated with the management or control of Hester Biosciences and does not hold any position as a director or Key Managerial Personnel. He affirmed that his shareholding is below the prescribed threshold and is held purely as a passive investment, with no intention to exercise control. He confirmed compliance with Regulation 31A(3)(b), including that related persons do not hold more than 10% of total voting rights and that there are no pending regulatory actions against him.

Ms. Bela Gandhi stated that she has not been involved in the management or control of the company for the last 12 years. She does not hold any Board position or Key Managerial Personnel role, and her shareholding is held purely as a passive investment. She similarly confirmed compliance with the conditions under Regulation 31A(3)(b), including that she does not hold more than 10% of total voting rights along with related persons and exercises no control over the company's affairs.

Regulatory Compliance

The disclosure regarding these reclassification requests was signed by Vinod Mali, Company Secretary and Compliance Officer, on 15 May 2026. The company is processing the requests in compliance with Regulation 31A(8) of the SEBI (LODR) Regulations, 2015.