Sanofi India

Sanofi India underwent a significant transformation in 2025, including the demerger of its Consumer Health business and new partnership agreements. This transformation complexified the reading of financial statements, leading to flat domestic sales for 2025. Despite this, the company achieved a 1% increase in full-year profit before tax and a 4% increase in profit after tax, driven by business and operational efficiencies. Management expects the impacts of this transformation to stabilize within 3-4 years, positioning the company for sustainable and profitable growth.

The diabetes franchise demonstrated strong momentum, with the overall insulin portfolio growing by 6% for the full year 2025, accelerating to an 11% growth in the fourth quarter. Lantus, the flagship basal insulin brand, maintained its market leadership with a 31% share and saw a 6% volume acceleration. Toujeo, a second-generation basal insulin, also reported double-digit growth. The company is focused on maximizing its current portfolio, including Soliqua, and expanding its reach in both private and public sectors.

Partnership sales for the full year were down 2% compared to the previous year, with a notable 23.5% quarter-on-quarter drop in Q4 (from INR 200 crores in Q3 to INR 153 crores). This volatility was attributed to phasing, stock stabilization, frozen periods during new partnerships, and competitive discounting in institutional business. While the underlying partnered portfolio showed a 4% volume growth (excluding one-off^📎 stock effects), management anticipates continued fluctuations through 2026 before stabilization. The CV portfolio (Emcure and Cipla) grew in low single digits, while Oral Antidiabetic (OAD) partnerships saw higher single-digit growth.

The company made significant efforts in reducing operating expenses, particularly employee costs, which decreased by 17% in both the fourth quarter and the full year. Despite these efficiencies, the Q4 EBITDA margin stood at 21.5%, marking an 8-quarter low. Management indicated that the profit before tax in Q4 saw a significant drop, primarily due to phasing and top-line impacts from stock movements rather than underlying business performance.

Sanofi India's strategy is to modernize its business model, focusing on being an R&D-driven, AI-enabled biopharma organization with patient-centric and digitally empowered capabilities. The company aims to accelerate growth for Soliqua and expand Toujeo in the public sector. While there are no new product launches planned for 2026, the company is working on bringing a reusable pen for Soliqua in the 'next upcoming years'. Management reaffirmed its long-term commitment to the Indian market, emphasizing its manufacturing facility in Goa which exports to 25 countries.

The Board proposed a final dividend of INR 123 per share for the year ended December 31, 2025, representing a 5% increase over the 2024 dividend. This proposal will be presented to the general assembly for approval in May or June 2026. The earnings per share for the full year stood at INR 142.