20261105 Transcript of Earnings Conference Call for Q2 & H1 FY27 Financial Results

7 November 2026 To, To, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra - Kurla Complex, Mumbai 400 001 Bandra (E), Mumbai 400 051 Scrip Code: 524669 Symbol: HESTERBIO Dear Sir/ Madam: Subject: Transcripts of earnings conference call held on 5 November 2026 Pursuant to Regulations 30 and 46(2)(oa) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached the transcript of the earnings conference call held by the management of the Company with all investors on Thursday, 5 November 2026 at 2:00 p.m. (IST) to discuss the financial results for the for the quarter and six months period ended 30 September 2026. This is for your information and records. Sincerely For Hester Biosciences Limited Vinod Mali Company Secretary & Compliance Officer Enclosure: As above “Hester Biosciences Limited Q2 and H1 FY27 Earnings Conference Call” 5 November 2026 Management: Mr. Rajiv Gandhi - Chief Executive Officer and Managing Director - Hester Biosciences Limited Ms. Priya Gandhi - Executive Director - Hester Biosciences Limited Mr. Ashish Desai - Chief Financial Officer - Hester Biosciences Limited Moderator: Ms. Nisha – ICICI Securities Limited Page 1 of 12 Hester Biosciences Limited 5 November 2026 Moderator: Ladies and gentlemen, good day, and welcome to the Hester Biosciences Q2 and H1 FY27 Earnings Conference Call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note this conference is being recorded. I now hand the conference over to Ms. Nisha. Thank you, and over to you, ma'am. Nisha: Thank you, Nazni. Good afternoon, everyone. On behalf of ICICI Securities, I welcome you all on Q2 and H1 FY27 Earnings Conference Call of Hester Biosciences Limited, and I thank the Hester Biosciences management team for giving us the opportunity to host this call. Today, on this call, we have with us Mr. Rajiv Gandhi, CEO and Managing Director; Ms. Priya Gandhi, Executive Director; and Mr. Ashish Desai, Chief Financial Officer. I will now hand over the call to the Hester management team for their opening remarks. Thank you, and over to you. Priya Gandhi: Good afternoon, everyone. This is Priya Gandhi. As always, it's a pleasure to connect with you all. Thank you for joining us today as I take you through Hester Biosciences performance for the second quarter and first half of financial year '27. We appreciate your continued interest and support. In our last earnings call, we spoke about how our efforts on product mix, manufacturing efficiency and operational discipline were beginning to translate into stronger performance. We are encouraged to see this improvement continue into the second quarter. Our detailed results are available in the press release, so I will briefly touch on the financial highlights, and we'll be talking about the different segments, businesses and our priorities. Coming to the financial performance. The Page 2 of 12 Hester Biosciences Limited 5 November 2026 standalone revenue increased by 28% in Q2 and 21% in H1 over the corresponding period of the previous year. We are particularly pleased to report a strong growth in PAT, which more than doubled, increasing by 131% during the quarter, and 108% in the first half. Gross profit margin stood at 78% in both Q2 and H1, supported by a favorable product mix and our focus on operational efficiency. EBITDA margin stood at 35% across both periods, reflecting higher sales and disciplined cost management. It is encouraging that the improvement seen in Q1 has continued into Q2. While margins will vary depending on the product mix in each period, our focus remains on sustaining the operational improvements and profitability. Profitability improved despite higher depreciation following the capitalization of the BSL-3 laboratory and fill/finish facility. At a consolidated level, revenue grew by 38% in Q2 and 13% in H1, primarily driven by the India business. PAT increased by 44% in Q2 and to 71% in H1. As explained in our previous call, H1 consolidated profitability includes an exceptional accounting gain recognized in Q1 following the amendment of Hester Africa's loan agreement with the Gates Foundation. This contributed significantly to the reported H1 profit growth and should be viewed separately from the performance of the business. We are grateful to the Gates Foundation for their continued support. Coming to the division-wise performance from Hester India. Poultry Healthcare maintained its growth momentum with revenue increasing by 27% during the quarter and 37% for the first -- for the half year. Our focus on institutional business, deeper market penetration and customer engagement continues to support the division. The performance reflects efforts undertaken over successive quarters to strengthen our presence and relationships across key markets. Along with vaccines, our health products portfolio includes feed supplements and disinfectant solutions addressing broader disease prevention and farm health management needs. We continue to develop these offerings supported by scientific engagement with customers. Going ahead, while quarterly growth Page 3 of 12 Hester Biosciences Limited 5 November 2026 rates can vary depending on the seasonality, but our priority is to strengthen the underlying business through relevant products, wider market reach and consistent execution. We received a question ahead of this call on the response of our low pathogenic Avian Influenza or the H9N2 vaccine and the prospects for exports, which I would like to address here. As we shared in our previous call, the initial response in India was encouraging and the vaccine contributed to the poultry health care growth. We continue to focus on scientific engagement and market development. Exports will depend on registrations and approvals in specific markets, along with commercial readiness. Coming on to the Animal Healthcare division. Animal Healthcare recorded a revenue growth of 34% in Q2, supported primarily by increased tender execution. H1 revenue remained 14% below the corresponding period of the previous year, reflecting lower sales in Q1. Government-led immunization programs form an important part of this business. Supplies follow program implementation schedules, which naturally lead to variations in sales across reporting periods. We, therefore, assess the business over a broader period rather than drawing conclusions from a single quarter. Along with these immunization programs, we continue to enhance our biologicals portfolio and explore opportunities to serve institutions directly through closer engagement and better understanding of the health care requirements. Moving beyond the division-wise performance, I'd like to give you a broader perspective on our product development work and evolving regulatory requirements. We continue to advance our biological pipeline across poultry and animal health care through regulatory dossier submissions and approvals for further development and field trials. Our development program includes products suited to our recently capitalized infrastructure, particularly the BSL-3 laboratory. I would just like to mention here that regulatory requirements in animal health care are becoming increasingly rigorous, particularly around documentation, compliance and trial requirements. Meeting these evolving requirements can Page 4 of 12 Hester Biosciences Limited 5 November 2026 extend the development and approval time lines, but we welcome these changes as they further strengthen quality standards, confidence in the industry and reinforces our own commitment to quality. Along with product development, we con [Showing first 8,000 characters — download PDF for full document]