FIIs Bought 23,613 Shares: This Bioscience Company Advances Rs 176 Crore Facility and Plans Early Launch of Avian Influenza Vaccine in Q2FY26
On YTD basis stock is down by 24 per cent, while in last 12 months it is up by 3 per cent.
Hester Biosciences is advancing on several strategic fronts in FY26, with a clear focus on operational efficiency, capacity enhancement, and portfolio expansion. A key milestone is the expected capitalization of its fill finish facility, currently under capital work in progress (CWIP) with a value of Rs. 176 crore alongside the BSL-3 facility. The company anticipates this facility will be ready for commercial use by Q2 or, at the latest, Q3 of FY26, pending regulatory clearances and completion of the remaining production batches.
A significant growth driver for the company is the upcoming launch of the Avian Influenza vaccine, scheduled for early Q2 FY26. This product is expected to contribute meaningfully to revenue growth over the next few years. Parallelly, clarity is awaited on manufacturing plans for the BSL-3 facility, which was created under the COVID Suraksha program. The company aims to use this high-biosafety facility to produce its own animal vaccines, and expects to finalise product and revenue plans by Q1 or Q2 of FY26.
DSIJ's ‘Mid Bridge’ service recommends well researched Mid-Cap stocks for smart investing. If this interests you, download the service details here.
Operational improvement remains a core focus, following efficiency gains in FY25 that supported stronger margins and profits. Hester also aims to diversify its product mix within the Animal Health and Pet Care segments, introducing more therapeutic, biosecurity, and nutritional products. This will help reduce dependence on vaccine revenues and broaden the company’s market presence.
In support of public health efforts, the company plans to contribute to the fight against antimicrobial resistance by expanding its range of preventive care and disinfectant products. On the international front, Hester continues to grow its footprint in Asia and Africa, where it holds exclusive distribution rights in many countries and has begun building its own marketing teams.
Hester Africa has been narrowing its losses, supported by strong product margins and improving plant utilisation. Management is optimistic about reaching breakeven earlier than the previously expected FY27–FY28 timeframe. Meanwhile, Hester Nepal maintained profitability in FY25, supplying both domestic and international vaccine demand, particularly through tender-based exports to global agencies.
Financially, the company has reduced debt by Rs. 32 crore over the past year and generated Rs. 70 crore in operational cash flow during FY25. With no immediate need for additional working capital, the company is focused on maintenance CAPEX only, as the fill finish facility comes online in FY26.
In March 2025 quarter FIIs increased their stake in the company to 0.89 per cent from 0.61 per cent in the December 2024 quarter. FIIs bought a total of 23,619 shares. On YTD basis stock is down by 24 per cent, while in last 12 months it is up by 3 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.