Why Did Sanofi India’s Q2 Net Profit Drop by 7.9%?
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Synopsis
Sanofi India's latest financial report reveals a concerning 7.89% dip in net profit, raising questions about future performance as they navigate restructuring amid falling revenues. Can the company rebound?
Key Takeaways
- Net profit fell by 7.89% in Q2 FY26.
- Revenue dropped by 9.27% to Rs 475.4 crore.
- EBITDA rose by 12% to Rs 134 crore.
- Operating margin improved to 28%.
- Interim dividend of Rs 75 per share announced.
Mumbai, Oct 29 (NationPress) Sanofi India Limited disclosed a 7.89% decrease in its net profit for the second quarter ending September 30 (Q2 FY26) on Wednesday. The company's profit fell to Rs 76 crore, down from Rs 82 crore in the corresponding quarter of the previous fiscal year (Q2 FY25), as reported in its stock exchange filing.
Revenue from operations experienced a 9.27% decline, totaling Rs 475.4 crore, compared to Rs 524 crore last year.
Despite the revenue drop, Sanofi India’s earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 12% to Rs 134 crore.
The company's operating margin saw improvement, rising to 28% from 23% in the previous financial year, aided by cost-reduction strategies and an enhanced product mix.
Sanofi India, a subsidiary of the French pharmaceutical giant Sanofi SA, is concentrating its efforts in India on crucial sectors like diabetes and cardiovascular treatments during its ongoing restructuring process.
In conjunction with these results, the board declared an interim dividend of Rs 75 per share for the fiscal year 2024–25, with the record date set for November 7.
Additionally, Sanofi India announced the appointment of Deepak Arora as its new Managing Director for a three-year term commencing on October 27. In this capacity, Deepak is expected to define and propel the strategic vision for India in line with Sanofi's global objectives.
“He will lead strategic initiatives to enhance innovation and responsiveness throughout the organization while promoting operational excellence across all departments,” the company mentioned in its filing.
Arora brings over three decades of global experience in the pharmaceutical sector, having worked across North America, Europe, the Middle East, and Africa, and replaces Rachid Ayari.
Ayari will continue his role as Whole-time Director and Chief Financial Officer after serving as Interim Managing Director.
Following this announcement, Sanofi India's shares remained relatively stable, closing at Rs 4,747 on Wednesday. The stock has appreciated approximately 22% this year, while the Nifty Pharma index has decreased by around 4.5% during the same timeframe.
Point of View
Sanofi India's performance indicates a need for strategic pivots in their business model. The company's focus on key therapeutic areas is commendable, yet the decline in profit and revenue highlights challenges that must be addressed to maintain market relevance. As always, the Nation stands ready to report on these developments.
NationPress
29/10/2025
Frequently Asked Questions
What was the percentage decline in Sanofi India's net profit?
Sanofi India reported a 7.89% decline in net profit for Q2 FY26.
How much did Sanofi India's revenue drop?
The revenue from operations decreased by 9.27% to Rs 475.4 crore.
Who is the new Managing Director of Sanofi India?
Deepak Arora has been appointed as the new Managing Director for a three-year term.
What is the interim dividend announced by Sanofi India?
Sanofi India declared an interim dividend of Rs 75 per share.
How has Sanofi India's stock performed this year?
The stock has gained approximately 22% so far this year.
