Sanofi India Limited — Q3 FY26 earnings call

Call held 26 Feb 2026

Management summary

Sanofi India reported a year of transformation in 2025, leading to flat domestic sales but a 1% increase in full-year profit before tax and 4% in profit after tax. The insulin portfolio, particularly Lantus and Toujeo, demonstrated strong growth, with overall insulin sales up 6% for the year and 11% in Q4. However, partnership sales experienced volatility and a decline, while exports also dropped significantly. The company is focusing on maximizing its current diabetes portfolio and expects continued growth, potentially double-digit, once transformation impacts stabilize.

Highlights

  • Profit before tax for the full year increased by 1% driven by business and opex efficiency.

  • Profit after tax for the full year increased by 4%.

  • Diabetes franchise showed momentum, with overall insulin growth of 6% for the full year and 11% in Q4.

  • Lantus maintained 31% market leadership in the basal segment with a 6% volume acceleration.

  • Toujeo, a second-generation basal insulin, showed double-digit growth.

  • Proposed dividend per share of INR 123 for FY25, up 5% from 2024.

  • Employee costs saw a significant reduction of 17% in both Q4 and the full year.

Concerns

  • Domestic sales were flat for 2025.

  • Partnership sales for the full year were down 2% versus last year, with a significant drop of 13% in Q4 compared to Q3 (INR 153 crores vs INR 200 crores).

  • Significant drop in export revenue due to divestment of Ankleshwar site with Zentiva in 2021.

  • Q4 profit before tax saw a significant drop, attributed to phasing and top-line impact from stock movements.

  • Q4 EBITDA margins were at 21.5%, an 8-quarter low.

Key financials

2 periods

Headline

  • Domestic Sales
    ₹1,511 Cr
    YoY 0%
  • Partnership Sales (FY)
    —
    YoY -2%
  • Profit Before Tax (FY)
    —
    YoY +1%
  • Profit After Tax (FY)
    —
    YoY +4%
  • Insulin Growth (FY)
    —
    YoY +6%
  • EPS
    ₹142

Q4

  • Partnership Sales
    ₹153 Cr
    QoQ -23.5%
  • Insulin Growth
    —
    YoY +11%
  • EBITDA Margin
    21.5%

What they filed

Q1 FY27: revenue up 7.9%, net profit up 20.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue524 515 536 406 475 −9%420 −18%472 −12%438 +8%
EBITDA120 118 172 95 134 +12%90 −24%143 −17%115 +21%
Net profit82 91 120 70 76 −7%62 −32%103 −14%84 +20%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Diabetes (Insulin)
    6% FY Growth11% Q4 Growth
  • Partnership Portfolio (Overall)
    4% FY Growth (excluding stock effect)4% FY Growth (excluding stock effect)
  • Partnership Portfolio (OAD)
    — Growth
  • Partnership Portfolio (CV - Emcure & Cipla)
    — Growth

Capital allocation

high confidence
  • Dividend ₹123/share (final)
    so it's INR 142 and the dividend per share will be INR 123. Part of it was already distributed in the interim in the previous period and the final one once it will be approved by the general assembly, which will be after in May, June of this year.

Guidance & targets

Profitability

  • Profit Before Tax (FY) Profitability · FY25 · High confidence +1%
    We still had plus 1% profit before tax driven by the business and opex efficiency.

    — Deepak Arora

  • Profit After Tax (FY) Profitability · FY25 · High confidence +4%
    So first, the results we are positive for the year in terms of profit before exceptional items plus 1% and for the profit after tax, we are plus 4%.

    — Rachid Ayari

Sales Growth

  • Overall Insulin Growth (FY) Sales Growth · FY25 · High confidence +6%
    As Rachid talked about, plus 6% growth in insulin overall full year

    — Deepak Arora

  • Overall Insulin Growth (Q4) Sales Growth · Q4 FY25 · High confidence +11%
    if you look at the accelerated momentum in quarter 4, that plus 6% was close to around 11% in quarter 4 alone

    — Deepak Arora

Product Pipeline

  • New Products Product Pipeline · 2026 · High confidence None
    There are no new products in 2026 for us.

    — Deepak Arora

Product Launch

  • Soliqua in Public Sector Product Launch · 2026 · High confidence New entry
    Soliqua in public sector will be new and also Toujeo expansion in public sector will be new for us.

    — Deepak Arora

  • Toujeo Expansion in Public Sector Product Launch · 2026 · High confidence New entry

    — Deepak Arora

Product Development

  • Soliqua Reusable Pen Product Development · next upcoming years · Medium confidence Happen in next upcoming years
    So the project is in progress and I hope that it will happen in the next upcoming years.

    — Rachid Ayari

Market context

  • Overall Growth (excluding one-offs) Sales Growth · Ongoing · Medium confidence Double digit
    But if you look to the market, I think it could be double digit. So if you take out everything, yes.

    — Rachid Ayari

What to watch in Q4 FY26

Stabilization of Partnership Sales

through 2026
Current Fluctuating, down 2% FY, down 23.5% QoQ in Q4
Target Reduced volatility and positive growth

Why it matters

Partnership sales are a significant part of revenue, and their current volatility impacts overall financial performance and clarity.

I think the fluctuation will continue in 2026.

Risks & concerns

  • Complexity in financial reporting due to transformation

    medium

    Demerger of Consumer Health business and new partnerships complexify the reading of financial statements and performance.

    Management acknowledged

  • Volatility in partnership sales

    medium

    Fluctuations in partnership sales due to stock movements, frozen periods, and competitive discounts are expected to continue through 2026.

    Management acknowledged

  • Aggressive competition in institutional business

    medium

    Headwinds from aggressive discounts by competitors in certain institutional accounts are impacting partnership sales.

    Management acknowledged

  • Q4 EBITDA margin at 8-quarter low

    medium

    EBITDA margins for Q4 were 21.5%, which is the lowest in 8 quarters, indicating pressure on profitability.

    Analyst acknowledged

Q&A highlights

5 direct
Volatility and decline in partnership sales Partial
That was basically due to phasing based on the stock stabilization or replenishment, which was required and there was a frozen period as we get into any new partnership, example is the OADs. Additional gross to net for OADs also impacted this. And last, but not the least, a little bit of headwind related to certain accounts in institutional business where there was an aggressive discount from competition, which we are trying to tackle and see what can be the innovative access model as we get into 2026.

Analysts questioned the significant quarter-on-quarter drop in partnership sales, and management attributed it to multiple factors including stock movements, new partnership dynamics, and competition, indicating continued fluctuation.

Asked by Rajakumar Vaidyanathan

End market growth for partnered portfolio Direct
It was in the low single digits if I remember because again for CV for Cipla, there was a little bit turbulence in terms of the push of discounts by the competition. So I think the first 2 quarters were not very good. But for OAD, I think it was higher single digit, which was better than the performance in the first half when you look at the OAD when Emcure took over. But overall, I think it will be a single-digit growth at a lower rate. If we take out the cert effect, we should be at in volume growth, we should be at plus 4%.

Management provided specific growth rates for different parts of the partnered portfolio, clarifying that overall volume growth was 4% excluding one-off effects.

Asked by Vishal Manchanda

Pricing strategy for the partnered portfolio Direct
In terms of pricing so for the NLEM product, I suppose that they will follow the WPI growth from one year to another. And for the rest of the portfolio where there is no restriction depending on the market condition so we have still -- they have 10% to increase the prices and it will be product by product depending on the market condition.

Clarified pricing mechanisms for NLEM vs. non-NLEM products within the partnered portfolio, indicating some flexibility for price increases up to 10% for the latter.

Asked by Vishal Manchanda

Strategy for scaling up the diabetes business and future therapy areas Partial
So for now I think we have lot to do with the current portfolio and I think Soliqua is just 1 year old in the game. You know how GLP-1 is accelerating in the market and we should be leapfrogging along with GLP-1 activation in the market because Soliqua is a combination of both glargine and GLP-1. Our plan is to how we can accelerate the double-digit growth for Soliqua moving forward both in private and in public sector and then also continue expanding Toujeo, which is also an innovator, which is U-300 glargine in the public sector. So for now I think we have a lot and we can maximize a lot with the current portfolio as we look forward for pipeline as it comes.

Analyst questioned expansion into new therapy areas, but management reiterated focus on maximizing the current diabetes portfolio (Soliqua, Toujeo) and existing CV/CNS areas, with no immediate plans for new therapeutic areas in the listed entity.

Asked by Vipul Shah

Reasons for year-on-year decline in results and stabilization timeline Partial
So first, the results we are positive for the year in terms of profit before exceptional items plus 1% and for the profit after tax, we are plus 4%. So we are not negative, last year it's not as well. Now as we mentioned the impact, I think why we don't see the real performance of the legal entity because all this transformation that we have done in the past. So the demerger of the CHC, there are certain transactions that were done to support them in the past that are not anymore in 2025. And there is the partnership that we signed as well where there is an impact in terms of top line, but we are saving in the opex. And the real impact as we made the analysis, it will not be immediate. I think starting when we analyze and we presented the business case, it's within 3, 4 years and I think we are on track on versus the forecast that we have done. So no, we don't see major issue coming, but the transformation and this transition is taking a bit time.

Analyst questioned perceived decline, and management clarified that profits were positive but the ongoing transformation (CHC demerger, new partnerships) complexified financial reading, with stabilization expected within 3-4 years.

Asked by Avani Gadhia

Sanofi's commitment to India given Novartis' exit Direct
I think India remains a very important market for us and that's why you see that our transformation journey is to improve growth in the insulin and diabetes segment. And it's been 70-plus years that we continue our commitment to support health care of communities and individuals. So I think for now I would say that we need to focus on what we have and continue not only from a product perspective, but also impact from our CSR initiatives to support. You also know our manufacturing facility in Goa produces best-in-class essential medicine for both domestic and international markets exporting to around 25 countries worldwide, which should give you an assurance that we are here and we'll be serving our patients.

Analyst probed if Sanofi might follow Novartis' path, but management strongly affirmed commitment to India, highlighting ongoing transformation, long history, manufacturing capabilities, and global exports.

Asked by Avani Gadhia

Potential for double-digit growth if partnership issues were absent Direct
So if you look at the diabetes market, right, growing by plus 6% and add if there was no the frozen period, the replenishment of the stock at the partner level; that 6% would have been plus, right, for the full year. And for the quarter with 6% diabetes and no impact on the replenishment and the other aspects, this could have been a double-digit growth.

Management confirmed that without the one-off issues in partnership sales, the combined business (diabetes + partnership) could have achieved double-digit growth, indicating underlying potential.

Asked by Manish

Development of a reusable pen for Soliqua Direct
You are right. We are considering bringing the reusable pen. India is one of the pioneer market in terms of cartridge and the reusable pen. And even the group, they are changing their vision on India. So they are more for reusable pen for environment reason as well. So the project is in progress and I hope that it will happen in the next upcoming years.

Analyst inquired about a reusable pen for Soliqua, and management confirmed it's a project in progress, driven by environmental reasons and India's pioneering role, with an expectation for it to launch in the 'next upcoming years'.

Asked by Vishal Manchanda

2 min read 6 chapters

Detailed narrative

Transformation and Financial Performance Overview

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.

Diabetes Portfolio Momentum

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 Business Volatility and Outlook

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.

Operational Efficiency and Margins

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.

Strategic Focus and Future Initiatives

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.

Shareholder Returns

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.

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