Sanofi Consumer Healthcare India Ltd

Financial results approved

• Board approved unaudited results for quarter and half-year ended 30 June 2026.
• Q2 2026 revenue ₹2,357 million; PBT ₹919 million; PAT ₹688 million.
• HY 2026 revenue ₹4,649 million; PBT ₹1,826 million; PAT ₹1,366 million.
• Basic EPS: Q2 ₹29.87; HY ₹59.31.
• Dividend not declared for HY ended 30 June 2026.

Regulatory and audit notes

• PwC performed limited review; no material misstatement observed.
• 2026 results prepared under Ind AS; review report unmodified.
• New Labour Codes: ₹24 million past service cost recognised; gratuity liability up.
• Recall and relaunch of Combiflam, Allegra, Depura reflected; comparability affected.
• Single business segment; no subsidiaries, associates, or joint ventures.

Dematerialisation status

• Dematerialisation requests received during the period were processed and confirmed to the depositories.
• Dematerialised securities have been listed on the exchanges where earlier issues are listed.
• Physical certificates received for dematerialisation were mutilated and cancelled after verification.
• Depository name substituted as registered owner within prescribed timelines.

Financial Performance and Key Metrics

• FY25 revenue ₹880 crore with 21% growth in Revenue from Operations.
• Operating profit increased by 13%, PAT grew by 33% in FY25.
• Profit from Operations margin at 37%, ROCE at 62.5%.
• Domestic sales grew 22% in Q4; excluding recall impact growth was 11%.

Business Strategy and Growth Drivers

• Focus on profitable growth through brand equity investment and self-choice market.
• Key brands: Avil (#1 volume), Allegra (#3 value), Combiflam (#5), DePURA (top 5 Vitamin D).
• Strategy pillars: scale HCP reach, scale consumer engagement, improve direct retail access.
• Plan to double face-to-face HCP reach in 2026; digital HCP engagement also expanding.
• Increased A&P spends started Q2 FY25, continuing to build brand presence.
• Digital and AI investments enable faster creative production and data-driven decisions.
• Supply chain fully independent, nearly 100% production in India for stock control.
• Categories have large growth headroom: allergy (30% affected), pain (90% episodes), Vitamin D deficiency (70%).
• Consumer self-medication rising; 53 million online health queries, 25% self-medicate, 15% consult pharmacists.
• Innovation pipeline active; Allegra D launched last year; more launches planned.
• Evaluating expansion into new categories beyond pain, allergy, nutrients.
• Field force of ~350 medical reps, digitally enabled with AI-supported content.
• Regional strength in North India; East region targeted for growth; West and South aligned with category.

Corporate Social Responsibility and Culture

• Project Amrit provided clean drinking water to 200,000 people in last year.
• Van Mitra project planted 34,000 trees, reducing 400 tons of CO₂ emissions.
• Certified as a B-Corp for ethics, social and environmental performance.
• Diversity improved with women employees doubling in one year; recognized as preferred workplace.
• Culture focus on challenger mindset, KPI-driven performance, and rewarding excellence.

Q&A Highlights

• Analysts asked about India focus; management confirmed growth and profitable growth priority.
• Pipeline products under evaluation; Allegra D cited as recent innovation; other products remain with same team.
• OTC policy pending; expected to enable direct consumer communication and category building.
• E-commerce and modern trade contribute single-digit sales; growing faster than core business.
• Plan to double HCP coverage face-to-face in 2026.
• Considering both internal sales force productivity and third-party MR models for reach expansion.
• Field force digitally enabled with AI content; 350 medical reps currently.
• Regional reach strong in North; East targeted for expansion; West and South aligned with category.
• Post-recall, two of four brands regained pre-recall run rates; HCP feedback positive on brand superiority.
• CMO network well diversified; no supply concerns.
• Investment in brand building started Q2 FY25; will continue to grow.
• Growth measured by top line, market share gain, and bottom line; must outperform market growth.
• Inorganic growth opportunities under discussion; global group open but evaluating options.
• Sustainable profitable growth prioritized; margin impact managed carefully with focused spending.
• Considering brand extensions that allow direct consumer communication, e.g., Combiflam cream.
• No forward-looking financial guidance provided.