Are Hester Biosciences Ltd latest results good or bad?

Hester Biosciences Ltd's latest financial results for the quarter ending December 2025 reveal a complex picture of operational performance. The company reported consolidated net sales of ₹77.42 crores, reflecting a year-on-year growth of 22.46% from ₹63.22 crores in the same quarter last year. This growth indicates robust demand for its poultry and large animal healthcare products, suggesting a positive trend in revenue generation. However, the consolidated net profit for the same quarter was ₹8.77 crores, which represents a decline of 24.79% compared to ₹11.66 crores in the previous year. This decline in profit raises concerns about the company's ability to convert revenue growth into sustainable profitability. Additionally, on a sequential basis, the profit decreased by 39.31% from ₹14.45 crores in the preceding quarter, highlighting a significant deterioration in operational efficiency despite the revenue uptick. The operating margin, excluding other income, improved to 22.99%, up from 8.00% in the same quarter last year, indicating some operational enhancements. However, the profit after tax (PAT) margin compressed to 12.03%, down from 18.05% year-on-year, which underscores the challenges in maintaining profitability amidst rising costs and declining other income, which fell sharply by 91.42% year-on-year. Overall, while Hester Biosciences Ltd demonstrated strong revenue growth, the substantial decline in net profit and the compression of profit margins signal critical operational challenges that need to be addressed. The company has experienced an adjustment in its evaluation, reflecting these mixed results and the underlying concerns regarding profitability and operational efficiency.