Sanofi India Ltd

GST refund order

• GST refund of Rs 1,32,93,535 sanctioned; no adjustment against demand of Rs 75,63,190; order received 12 Aug 2026.

Tax order impact

• Order received 11 Aug 2026 vacates tax demand of ₹72.71 lakh for AY 2019-20.
• Relief allowed by CIT(A) 49 Mumbai for AY 2019-20 has been given effect.
• Appeal concerned non-deduction of TDS on year-end provisions.
• No material impact on financials or operations.

Financial Performance

• Q2 2026 total income up 7%; sales up 6% (domestic and export).
• PBT and exceptional items up 19% to INR 112 crores.
• PBT margin improved to 27% from 24%.
• Cash generation up 34% year over year.
• Diabetes grew close to 14% in Q2, led by Toujeo and Soliqua.
• Public sector expansion drove about 70% of diabetes growth via new accounts.
• Soliqua grew 16% quarter-on-quarter despite GLP-1 market erosion.
• CSR initiatives: 600,000+ direct beneficiaries targeted by year-end; KiDS in Schools and Mobile Units; NHM MoU.
• Export performance stabilizing; Australia market challenges offset by Goa site specialization.
• Opex discipline yielded 5% quarterly cost savings; YTD H1 costs down 15%.
• 2026 marks acceleration for diabetes, with 17% growth in the first half.

Operating Update / Market Trends

• Diabetes leadership evidenced by 58% basal-analog value share and 61% volume share.
• Toujeo value share up 11%.
• Soliqua growth 16% QoQ; real-world evidence publications and landmark study.
• Public sector expansion supports growth via new accounts; digital outreach boosts tier-2/3 markets.
• Export trajectory: Australia challenges; Goa site specialization; anticipated South Africa tenders.

Q&A / Guidance Highlights

• Partnership growth underperformed; Q2 up 2% due to safety-stock in Q1 and transition effects.
• Partners restructuring and reinvestment expected to improve portfolio momentum; timing uncertain.
• Insulin market remains core; GLP-1 competition acknowledged; share-of-voice strategy emphasized.
• Export strategy offsetting Australia losses with France/Italy/Turkey/Russia; Goa site to scale.
• Dividend payout: Board to decide; management cannot commit; cash generation strong; payout not expected to be lower.
• AI-enabled patient pathways and devices to streamline screening to treatment.

Outlook / Acceleration Notes

• 2026 declared year of acceleration for diabetes; 17% growth in the first half.
• Public-sector expansion remains a priority to sustain diabetes growth.

Meeting Details

• Date: 5 August 2026.
• Time: 4:00 p.m.–5:00 p.m. IST.
• Investor/analyst call; virtual via dial-in and one-way webcast.
• Organised by: Sanofi India Limited.

Participants

• Key participants: Company Management; Company Secretary & Compliance Officer.

Purpose

• Update on unaudited quarterly and half-year results for June 2026.

Additional Notes

• Pre-registration required; closes 12:00 p.m. IST on Aug 5, 2026.

CFO resignation

• Name of resigning CFO: Mr. Rachid Ayari.
• Effective date: close of business hours on 30 September 2026.
• Reason: transition to another role within the Sanofi group.
• Transition plan: Company identifying a suitable CFO; appointment will be informed to stock exchanges.

Meeting Details

• Board meeting scheduled for Tuesday, 4 August 2026.

Key Agenda Items

• Consider and approve unaudited quarterly and half-year financial results for quarter and half year ended 30 June 2026.

Other Notes

• Trading window closed from 1 July 2026 to 6 August 2026 inclusive.

Dematerialisation status

• Dematerialisation requests processed; securities confirmed to depositories during quarter ended 30 June 2026.
• Dematerialised securities listed on the stock exchanges where the earlier securities are listed.
• Physical certificates for dematerialisation mutilated and cancelled; depository name updated as registered owner within prescribed timelines.

Tax appellate order

• Favorable order from Commissioner of Income-tax Appeal-49, Mumbai for AY 2019-20.
• Drops proceedings under Section 201, deleting a demand of Rs. 72,71,510.
• Order received on 02 July 2026.
• No material impact on Sanofi India’s finances or operations.
• Previous view as 'assessee in default' under section 201(1) reversed.

Senior management appointment

• Mr. Debajit Roy appointed Sales & Customer Engagement Head – Diabetes, as Senior Management Personnel.
• Effective 8 June 2026; appointment is on whole-time employment basis.
• Board approved the appointment on 3 June 2026, following NRC recommendation on 2 June 2026.
• He has over 20 years' experience across dermatology, specialty care, diabetes, and cardiovascular therapies.
• Previously served as Vice President at Gracewell Specialty and Gracemax, Glenmark Pharmaceuticals.
• Holds an MBA in Marketing and Human Resources and a B.Sc. degree.