1. Opening Hook
While Kerala battled bird flu headlines, Hester casually dropped a 140% PAT growth and said, “Not because of that.” Timing, mix, discipline — management swears it’s all planned, not poultry panic.
In a quarter where Animal Health revenue collapsed 38%, Poultry flexed muscles with 32% growth and margins north of 20%. CAPEX of ₹182 crore is finally getting capitalized, Africa is “long-term,” and tenders are being politely ghosted.
Oh, and the H9N2 vaccine license just arrived — but don’t ask for market size numbers. Those are apparently mythical creatures.
If you think this was just another seasonal poultry bump, read on. Things get more interesting when management starts promising “even higher profitability.” 😏
2. At a Glance
- Revenue (Standalone) up 12% – Slow and steady, not viral.
- PAT up 140% – Profitability found protein.
- 9M Revenue down 5% – Growth took a tea break.
- 9M Profit up 16% – Costs got disciplined.
- Poultry +32% Q3 – Chickens delivered.
- Animal Health -38% Q3 – Government programs hit snooze.
- EBITDA ~₹20 crore/quarter – Management says “base level.”
3. Management’s Key Commentary
“PAT up 140% year-on-year, driven by favorable product mix and sustained cost discipline.”
(Translation: We sold more high-margin stuff and kept expenses on a tight leash.) 😏
“Animal Health decline is timing-related, not a demand issue.”
(Translation: The government hasn’t paid yet. Please stay calm.)
“Execution under National PPR and Goat Pox programs expected from February 2026.”
(Translation: Q4 might rescue those scary YoY numbers.)
“We capitalized our fill/finish facility, effectively doubling drug product capacity.”
(Translation: ₹182 crore CAPEX is no longer just PowerPoint optimism.)
“Profitability forecasted is even higher than this.”
(Translation: ₹20 crore EBITDA is the floor, apparently.) 😌
“H9N2 is a very important disease… difficult to give a market size number.”
(Translation: Opportunity sounds big, spreadsheet not ready.)
“We want to reduce dependence on tender-driven revenues.”
(Translation: Government orders are great… until they vanish for three quarters.)
“Petcare is under 5% of Animal Healthcare.”
(Translation: Cute puppies won’t save revenues just yet.)
Overall tone? Confident on margins, cautious on visibility, allergic to exact forecasts.
4. Numbers Decoded
Segment Q3 Trend 9M Trend What It Really Means
---------------------------------------------------------------------------
Standalone Revenue +12% -5% Poultry offset Animal slump
Standalone PAT +140% +16% Margin game working
Poultry Healthcare +32% +17% Strong execution + mix
Animal Healthcare -38% -40% Tender delays hurt
Africa Revenue Stable Q3 ₹27.5 cr (9M) Execution timing sensitive
Petcare <5% of AH Early stage Optionality, not engine
Poultry is currently carrying the story. Animal Health is waiting for government files to move. CAPEX is now
