1. Opening Hook

When your biggest customer is the government, earnings season feels like waiting for a file to move from one desk to another. 😏
Hester Biosciences’ Q2/H1 FY26 concall had everything — weak India numbers, poultry vaccines quietly saving the day, Africa finally behaving, and management calmly reminding investors that “this is just timing.”

Animal healthcare collapsed because tenders slept. Poultry thrived because birds don’t wait for bureaucrats. Africa suddenly became profitable thanks to forex magic. And the much-hyped capex sat patiently in CWIP, promising glory after March.

If you expected fireworks, you got vaccination schedules instead. But behind the dull optics lies a company slowly shifting away from tender addiction toward commercial, export-led stability.

Read on. The numbers look soft — the strategy does not.

2. At a Glance

• Standalone Sales ₹64 Cr (Q2, -12%) – Government programs hit snooze.
• H1 Sales ₹128 Cr (-13%) – India felt the pain twice.
• Poultry Division +18% (Q2) – Chickens showed up when cows didn’t.
• Animal Healthcare -50% (Q2) – PPR & LSD vaccines delayed, not dead.
• Africa Profit +99% YoY – Forex did the heavy lifting.
• ₹182 Cr CWIP – Waiting to be switched on, literally.

3. Management’s Key Commentary

“The first half has been a mixed period.”
(Translation: India disappointed, others didn’t.)

“We focused on protecting margins despite lower topline.”
(Cost control is doing cardio.) 😌

“CWIP will be fully capitalized by March.”
(Capex story starts next fiscal.)

“Poultry healthcare grew 18% driven by vaccines.”
(Volume > pricing, science > tenders.)

“H9N2 vaccine authorization achieved.”
(Commercialization finally unlocked.) 🧬

“Animal healthcare degrowth is timing-related, not demand-related.”
(Government calendars strike again.)

“Africa operations to breakeven by FY28.”
(Finally, a believable Africa plan.)

4. Numbers Decoded

Weak topline, but no margin collapse — important distinction.

5. Analyst Questions (Decoded)

• Why poultry hasn’t grown much over years?
  Steady base, no major outbreaks, not underperformance.
• Can Hester benefit from future outbreaks?
  Yes — historically first responder (LSD example).
• Why not LSD vaccine instead of Goat Pox?
  Govt still prefers Goat Pox; switch expected next year.