Sanofi Consumer Healthcare reported a 13% year-on-year increase in net profit to ₹688 million for the second quarter of FY27, ending June 30, 2026. The Mumbai-based consumer healthcare firm saw revenue from operations rise 7% to ₹2,357 million, supported by strong domestic demand and the successful relaunch of previously recalled products. Profit before tax climbed 16% to ₹919 million, while EBITDA surged to ₹893 million from ₹702 million in the same period last year, reflecting disciplined execution and market share gains across key brands.

The Board of Directors approved the unaudited financial results at a meeting held on July 28, 2026, in compliance with Regulation 33 of the SEBI Listing Regulations. Price Waterhouse & Co Chartered Accountants LLP conducted a limited review of the results in accordance with Standard on Review Engagements (SRE) 2410. The statutory auditors issued an unmodified conclusion, confirming that the statements were prepared in accordance with Ind AS and other recognized accounting practices.

Domestic sales emerged as the primary growth engine, expanding 12% year-on-year during the quarter. This performance followed the relaunch of Combiflam Suspension, Allegra Suspension, and Depura Kids, which had been voluntarily recalled in 2024 as a precautionary measure. Conversely, export sales contracted by 9%, weighed down by a high base effect from the previous period. For the half-year ended June 30, 2026, total revenue reached ₹4,649 million, an 18% increase over the prior year, with export sales growing 27% on a low base.

Financial Performance Highlights

The following table summarises the company's key financial metrics for the quarter and half-year period:

The company's cost structure remained stable, with employee benefits expense recorded at ₹313 million for the quarter, compared to ₹320 million in the same period last year. Other expenses stood at ₹588 million, slightly higher than the ₹575 million reported in Q2FY26. The firm continues to monitor the financial impact of India's new Labour Codes, having recognised an incremental past service cost of ₹24 million in the prior fiscal year due to changes in wage definitions affecting gratuity liabilities.

Cash Flow and Balance Sheet Position

Sanofi Consumer Healthcare reported strong operating cash flows for the half-year ended June 30, 2026. Net cash inflow from operating activities reached ₹1,096 million, a significant improvement from ₹179 million in the corresponding period last year. This was driven by higher profit before tax and improved working capital management, despite an increase in inventories of ₹318 million and trade receivables of ₹205 million.

Cash and cash equivalents rose to ₹4,902 million as of June 30, 2026, from ₹3,748 million at the end of FY25. Investing activities generated a net cash inflow of ₹105 million, primarily due to interest received from fixed deposits of ₹109 million, offset by capital expenditures of ₹8 million. Financing activities used ₹47 million, mainly for lease payments, as no dividends were paid during the period compared to ₹1,267 million in the previous year.

What the Numbers Show

The divergence between domestic and export performance highlights the company's shifting revenue mix. While exports face headwinds from a high comparative base, domestic sales are recovering robustly post-recall. The 12% domestic growth rate significantly outpaced the overall 7% revenue growth, indicating that the relaunch strategy is effectively recapturing lost market share. The sharp expansion in EBITDA margin to 37.89% from 31.78% year-on-year, alongside profit before tax growth of 16% outstripping revenue growth of 7%, points to improved operating leverage and a favourable product mix in the current quarter. Managing Director Himanshu Bakshi attributed this to targeted investments behind brands and go-to-market capabilities translating into profitable growth.

Sanofi Consumer Healthcare India Ltd appointed M/s. Price Waterhouse & Co Chartered Accountants LLP as its statutory auditor during its 3rd Annual General Meeting held on June 26, 2026. The appointment fills a casual vacancy caused by the resignation of M/s. Kalyaniwalla & Mistry LLP and re-appoints the firm for a five-year term. The firm will hold office until the conclusion of the 8th AGM to be held in the year 2031. This decision was finalized pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Appointment Details

The appointment is effective from May 25, 2026, for the casual vacancy until the conclusion of the 3rd AGM. Thereafter, the term extends for five consecutive years commencing from the conclusion of the 3rd AGM until the conclusion of the 8th AGM in 2031. M/s. Price Waterhouse & Co Chartered Accountants LLP is registered with the Institute of Chartered Accountants of India (Firm Registration No. 304026E/E300009).

Auditor Profile

The firm is primarily engaged in providing assurance and auditing services and holds a valid peer review certificate. It audits various companies listed on stock exchanges in India.