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Sanofi India Ltd

| Quarterly Financial Results Q3 FY 2025-26

BULLISH SENTIMENT

Report Source

⬤25th Feb 26

Summary : Sanofi India announced strong dividends, strategic board appointments, and an unmodified audit opinion for FY2025, while navigating regulatory changes and export contract cessation.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Total Expenses: ₹13,851 million (FY2025), ₹15,606 million (FY2024).
  2. Key expenses include Cost of Materials Consumed, Purchases of stock-in-trade, Employee benefits expense, and Other expenses.
  3. Trade receivables: ₹1,767 million (Dec 31, 2025), ₹2,300 million (Dec 31, 2024).
  4. Revenue from Operations: ₹18,374 million (FY2025), ₹20,132 million (FY2024).
  5. Other Income: ₹197 million (FY2025), ₹165 million (FY2024).
  6. Net cash inflow from operating activities: ₹4,383 million (FY2025), ₹4,617 million (FY2024).
  7. Net cash outflow from investing activities: ₹113 million (FY2025), ₹192 million (FY2024).
  8. Net cash outflow from financing activities: ₹4,479 million (FY2025), ₹3,924 million (FY2024).
  9. Total Assets: ₹12,548 million (Dec 31, 2025), ₹16,118 million (Dec 31, 2024).
  10. Total Equity: ₹7,492 million (Dec 31, 2025), ₹8,606 million (Dec 31, 2024).
  11. Total Liabilities: ₹5,056 million (Dec 31, 2025), ₹7,512 million (Dec 31, 2024).
  12. The financial results are for Sanofi India Limited on a standalone basis.

Corporate Overview

  1. Leadership experience with global profile, driving business impact in India and overseas.
  2. Ms. Chakraborty has experience across APAC and China regions.
  3. Lower export sales due to anticipated cessation of contract with Zentiva.
  4. Impact of new consolidated Labour Codes on employee benefit obligations.
  5. Export sales impacted by cessation of contract with Zentiva.
  6. The Company operates in a single business segment: Pharmaceutical Business.
  7. Formal and informative, announcing key financial results, dividend recommendations, and board changes.
  8. Revenue from Operations (FY2025: ₹18,374 million)
  9. Other Income (FY2025: ₹197 million)
  10. Demerged Consumer Healthcare business effective June 1, 2024, now discontinued operations.
  11. Export sales were lower by ₹1,481 million in FY2025 due to cessation of contract with Zentiva.

Risk Factors

  1. New Labour Codes impact employee benefits.
  2. Export sales reduced by contract cessation.
  3. Demerger impacts comparative financial results.
  4. Evolving healthcare regulations pose challenges.

Key Drivers

  1. High dividend payout for shareholders.
  2. Strategic board appointments enhance governance.
  3. Focus on compliance and IP strategy.
  4. Unmodified audit opinion on financials.

Auditor’s Report

  1. Unmodified opinion on the financial results for the year ended December 31, 2025.

Board Commentary

  1. Appointment of Mrs. Rajani Kesari as Additional and Independent Director for 5 years, effective April 1, 2026.
  2. Resignation of Mr. Rodolfo Hrosz as Non-Executive Director, effective February 28, 2026.
  3. Appointment of Ms. Sudipta Chakraborty as Additional and Whole-time Director for 3 years, effective March 1, 2026.
  4. Recommended a final dividend of ₹48 per equity share for FY2025.
  5. Total dividend for FY2025 is ₹123 per equity share (including interim dividend of ₹75).
  6. Impact of new Labour Codes on employee benefit obligations.
  7. Lower export sales due to cessation of contract with Zentiva.
  8. Evaluation of impact from new consolidated Labour Codes on employee benefits.

Corporate Governance

  1. Auditors complied with Code of Ethics.
  2. Company focuses on ethical healthcare solutions.
  3. Mrs. Rajani Kesari appointed as Independent Director.
  4. Non-debarment confirmations provided by new directors.
  5. Board meeting approved results after Audit Committee review.
  6. Nomination and Remuneration Committee recommended director appointments.

Management Discussion & Analysis

Future Strategy

  1. Strengthening compliance, governance frameworks, and regulatory readiness.
  2. Focus on intellectual property strategy aligned with company's mission.

Industry Overview

  1. Operating amid evolving healthcare regulations and rapid industry transformation.

Operational Focus Areas

  1. Ensuring ethical and responsible delivery of innovative healthcare solutions.

Risk Control Measures

  1. Evaluating impact of new Labour Codes through actuarial valuation.
  2. Strengthening compliance and governance frameworks.

Critical Risks

  1. Potential financial impact from new Labour Codes.
  2. Reduced export sales due to contract cessation.