Sanofi Consumer Healthcare: Q2 FY27 PAT +22% YoY, margins expand on domestic growth

Sanofi Consumer Healthcare India's standalone revenue for the quarter ended September 30, 2026 (Q2 FY27 on our Apr-Mar convention; the company labels it 'Q3'26' under its Jan-Dec fiscal year) came in at ₹263.1 Cr, up 12.5% YoY and 11.6% QoQ, with PAT of ₹76.6 Cr, up 21.8% YoY and 11.3% QoQ. Both lines beat the bar set in our pre-result preview, which had flagged ~7% YoY revenue growth and PBT of ₹90-95 Cr as the expected range for a stock that trades 45% below its 52-week high on thin analyst coverage; actual PBT of ₹102.7 Cr (+22% YoY) cleared that range. No one-off items sit in either this quarter or the year-ago comparator quarter, so the headline growth is also the clean underlying growth — no adjusted-vs-reported split applies here.

Margin expansion did real work alongside topline growth: operating margin (EBITDA/revenue) rose to roughly 38.7% from 36.3% a year ago and 37.9% last quarter, while net margin improved to 29.1% from 26.9% YoY. The expense base held largely in line with revenue — cost of materials consumed was flat YoY at ₹40.7 Cr while other expenses rose about 20% YoY to ₹66.3 Cr — leaving operating leverage from the 19% YoY domestic sales growth management cited as the main driver, alongside the volume expansion and market-share gains it claims across key brands (Allegra, DePURA, Avil, Combiflam).

The stock went into the print at ₹3,333, down 15.4% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 5 consecutive quarters; revenue is at a 6-quarter high.

PAT ₹76.6 Cr, +21.8% YoY (+11.3% QoQ) — EPS ₹33.26 vs ₹27.31 YoY (+22%), matching the press release's own growth figures.

Single pharmaceutical segment, no subsidiaries/JVs — standalone is the only basis; no formal FY27 guidance on record.

Management gives no formal forward guidance on record, so this quarter cannot be graded against a prior company outlook — only against the street/preview expectations, which it beat. MD Himanshu Bakshi framed the quarter as reflecting "disciplined execution" and investment in brand building and distribution/HCP reach, consistent with the domestic-led growth in the numbers. The nine-month FY27 picture (revenue ₹728 Cr, +16% YoY; PBT +24% YoY) looks stronger than the single quarter, but the company itself flags that the nine-month comparison isn't fully clean — the FY25 base includes a phased product-recall relaunch (Combiflam Suspension back in Q2 2025, Allegra Suspension and Depura Kids in Q3 2025) that depressed prior-year quarters unevenly. The only corporate development in the window is the October 28 board meeting that approved these results; the Q3 FY27 trading-window closure noted in our event records is routine and doesn't bear on this print.