Sanofi Consumer Q1 FY27 Results (NSE: SANOFICONR)
Signal: Margin expansion
The read
Sanofi Consumer Healthcare delivered a clean quarter with 6.7% revenue growth, but more importantly gross margin expanded 380 bps YoY to 76.1% as the product recall headwind receded and relaunched brands normalized. EBITDA margin improved 310 bps to 37.9%. Net profit grew 13.3% to ₹68.8 Cr. Strong cash generation continued with net cash of ₹469 Cr. The half-year results (H1FY27) show revenue +18% and PAT +23%, confirming the recovery trajectory.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹235.7 Cr | 6.7% | 2.8% |
| EBIT | ₹86 Cr | 16.5% | |
| Net profit | ₹68.8 Cr | 13.3% | |
| EPS | ₹29.87 | 13.3% | |
| EBIT margin | 36.5% |
P&L walk
Revenue grew 6.7% YoY driven by domestic relaunch; gross margin expanded 380 bps to 76.1% on mix shift; employee and other costs grew slower than revenue, boosting EBITDA margin; PAT up 13.3% with clean earnings quality.
Key positives
- Domestic sales grew 12% YoY, aided by successful relaunch of Combiflam Suspension, Allegra Suspension and Depura Kids
- Gross margin expanded 380 bps YoY to 76.1% due to normalization of recall impact and mix shift
- EBITDA margin at 37.9%, up 310 bps YoY, reflecting operating leverage
- Net cash increased to ₹4,694 mn (₹469 Cr) with strong operating cash flow of ₹1,096 mn in H1
Key concerns
- Export sales declined 9% YoY on a high base; dependency on domestic market
- Revenue growth of 6.7% YoY is modest; half-year growth of 18% driven by easy comparables from recall
- No R&D expenditure disclosed; as a consumer healthcare OTC company, innovation spend may be limited
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