Sanofi Consumer Q2 FY26 Results (NSE: SANOFICONR)
Signal: Margin expansion
The read
Q2'26 was a steady execution quarter: revenue grew 7% YoY (domestic +12%, export -9%), but EBITDA margin expanded 130 bps to 39.0% as raw material costs fell and operating costs grew slower than revenue. PAT grew 13% YoY. This is the second consecutive quarter of margin expansion post-relaunch normalization. Cash from operations surged to ₹1,096 Mn in H1'26 vs ₹179 Mn prior year, underscoring earnings quality. The balance sheet remains virtually debt-free with ₹4.9 Bn cash.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹235.7 Cr | 7% | 3% |
| EBIT | ₹91.9 Cr | 27% | |
| Net profit | ₹68.8 Cr | 13% | |
| EPS | ₹29.87 | 13% | |
| EBIT margin | 39.0% |
P&L walk
Not applicable (standalone-only filer).
Segments
Single business segment: Pharmaceutical Business. No segment disclosure.
Key positives
- EBITDA margin expanded 130 bps YoY to 39.0%, driven by lower COGS (down 230 bps to 24.0% of revenue) and employee cost containment.
- Operating profit (EBIT) grew 27% YoY vs revenue growth of 7%, showing strong operating leverage.
- Domestic sales grew 12% YoY, aided by relaunch volumes of Combiflam Suspension, Allegra Suspension, and Depura Kids.
- Cash from operations in H1'26 surged to ₹1,096 Mn from ₹179 Mn prior year, a 6x improvement.
- Net cash position strengthened to ₹4,898 Mn, ensuring zero financial risk.
Key concerns
- Export sales declined 9% YoY on a high base, partially offsetting domestic growth.
- Other expenses rose as a % of revenue (24.9% vs 26.0% YoY) — needs monitoring in coming quarters.
- Revenue growth of 7% YoY remains below the 3-year CAGR of ~38%, largely due to normalization from the low base of recall and relaunch.
Research and educational content only. Not investment advice.