Sanofi India H1FY27 Results (NSE: SANOFI)
Signal: Revenue declined
The read
The trajectory is a mix-led diabetes recovery rather than broad-based topline acceleration: diabetes grew 14% for the second consecutive quarter and the public-sector business grew 70%, while H1 revenue declined 3.4% YoY; the key watchpoint is whether the 29.5% EBITDA margin is sustained as gross margin contracted approximately 280bps YoY and operating cash flow fell to ₹2,114 million from ₹2,910 million.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹91 Cr | -3.4% | N/A |
| EBIT | ₹25.08 Cr | N/A | |
| Net profit | ₹18.61 Cr | -1.5% | |
| EPS | ₹80.81 | -1.5% | |
| EBIT margin | 29.5% |
P&L walk
H1 revenue declined 3.4% YoY, while EBITDA margin was 29.5%; diabetes growth and 5% lower operating expenses supported profitability, but PAT still declined 1.5% YoY.
Key positives
- Diabetes portfolio growth was 14%, described as the second consecutive quarter of double-digit growth, supported by Lantus®, Toujeo®, Apidra® and Soliqua®.
- Public-sector business growth accelerated 70% through new Toujeo® and Soliqua® CARE Accounts, broadening access and distribution reach.
- Operating expenses declined 5% in the quarter, while EBITDA margin was 29.5%, supporting profit quality despite a 3.4% YoY revenue decline.
- EPS declined only 1.5% YoY to ₹80.81, tracking PAT without a dilution signal.
Key concerns
- H1 revenue declined 3.4% YoY to ₹910 million despite 17% reported H1 business growth, indicating a need to reconcile business growth with reported revenue conversion.
- Gross margin contracted approximately 280bps YoY to 49.5% as cost of materials, purchases and inventory changes rose to 50.5% of revenue from 47.7%.
- Operating cash flow declined to ₹2,114 million from ₹2,910 million, while trade receivables increased to ₹2,321 million from ₹1,767 million.
- PAT declined 1.5% YoY to ₹186.1 million despite diabetes and public-sector momentum, leaving sustained margin quality dependent on continued cost discipline.
Research and educational content only. Not investment advice.