Sanofi Consumer Healthcare: Q2 FY27 PAT +22% YoY, margins expand on domestic growth
PAT +21.78% YoY · revenue +12.48% · margins expanding · beat vs street
₹263.1 Cr
+12.48% YoY
₹76.6 Cr
+21.78% YoY
28.64%
+2.1pp YoY
₹33.26
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.
Q2 FY-2027 vs prior quarters
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.
What the summary numbers don't show
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.
W1
Whether 19% YoY domestic growth holds once the FY25/26 relaunch base effect fully laps (full relaunch was complete by Q3 2025).
W2
Operating margin trajectory — currently ~38.7%, up from 36.3% YoY — watch for cost pressure given other expenses rose ~20% YoY this quarter.
W3
Export sales trend — 9M exports +19% YoY but no standalone quarterly figure disclosed; our preview flagged exports as the softer side of the mix to watch.
Company's own filing labels this 'Q3'26' (calendar Jan-Dec fiscal year); maps to Q2 FY2027 under the Apr-Mar convention used in our records (quarter ended 30-Sep-2026) — confirmed since the PDF's prior-quarter and year-ago columns (rev 235.7cr/PAT 68.8cr/EPS 29.87 and rev 233.9cr/PAT 62.9cr/EPS 27.31) match our DB comparators exactly. Standalone only — company has no subsidiaries/JVs (note 6), so no consolidated statement exists. No exceptional item in this quarter or in the YoY comparator quarter itself (the ₹6.6cr demerger-provision reversal sits in an earlier FY25 quarter within the 9M book), so no raw/adjusted PAT split is needed. Figures converted from ₹ Million to ₹ Crore (÷10).
Can Sanofi Consumer Healthcare Sustain Growth Momentum Into H2?
The stock trades 45% below its ATH on oversold technicals, with only 1 analyst covering the name. Street expects steady mid-single-digit growth; watch domestic relaunch traction and margin resilience in a volatile pharma backdrop.
What to Expect: Growth Trajectory
~7% YoY
Q1 FY27 growth rate; domestic relaunch supporting, exports under pressure
~₹90–95 Cr
Q1 delivered ₹92 Cr; watch margin hold amid competitive pricing
Domestic up, exports down
Prior quarter: domestic +12%, exports -9%; track relaunch momentum
Sanofi Consumer Healthcare's prior quarter (Q1 FY27, reported Jul 28) posted 7% revenue growth on the back of a sustained domestic turnaround — brand relaunch initiatives drove 12% local sales growth, but export markets softened (-9% YoY on high base). PBT grew 16% to ₹92 Cr, signalling margin expansion despite topline moderation. For Q2, the Street expects the company to maintain this mid-single-digit growth run — anything materially below 5% would signal relaunch fatigue or export deterioration; a beat to 9%+ would confirm strong domestic momentum carrying into H2.
Street View: Thin Coverage, High Conviction
Since Last Quarter: Ownership Shifts & Corporate Actions
Ownership: FII stake has contracted 64bp year-on-year (3.24% → 2.60%), reflecting the stock's sharp correction; DIIs added 97bp, showing local institutional support. Promoter holding remains locked at 71.27%.
Recent filings: Board meeting scheduled for Oct 28, 2026 to approve Q2 FY27 unaudited results. Trading window for designated persons closed Sep 28 in anticipation of Q3 result announcement (routine). PwC appointed as statutory auditor in Jun 2026 (housekeeping). No material pledges, buyback announcements, or insider transactions flagged in recent weeks.
On Track for FY27?
The company has not disclosed explicit FY27 full-year guidance, making trajectory assessment reliant on run-rate projection. Q1 FY27 delivered 7% revenue and 16% PBT growth — if Q2 replicates this, the company would be pacing towards low double-digit PBT expansion for H1, which would support guidance assumptions (should management confirm them on the call). Risk: export headwinds intensifying beyond the -9% seen in Q1 could compress H2 visibility. Domestic relaunch must sustain traction; any moderation below 10% domestic growth would warrant a downgrade to guidance.
What to Watch on Result Day (Oct 28)
1 · Domestic growth momentum
Can the relaunch sustain 10%+ growth? Below 8% would signal category saturation or competitive pressure. Look for brand-wise breakup and market share commentary.
2 · Margin trajectory
Will PBT margin hold above 39% (Q1: 39.1%)? Input costs and pricing power in the OTC segment are the swing factors. Any margin contraction would be the biggest negative.
3 · FY27 guidance
Management must articulate full-year expectations — revenue growth range, PBT growth, and any headwinds (export mix, regulatory, competitive). Silence or vagueness will hurt confidence.
4 · Export commentary
Why the -9% decline in Q1? Is it cyclical (base effects) or structural (channel exits, product mix)? Colour on recovery timeline is critical for H2 outlook.
Sanofi Consumer Healthcare reports into a backdrop of extreme technical weakness — the stock's 45% descent from ATH has left it oversold, and minimal Street coverage means the Oct 28 result will be priced in largely on its own merit, without consensus scaffolding. The base case is 7% revenue and mid-teen PBT growth, anchored to Q1's relaunch-driven domestic strength offset by persistent export softness. A strong print (revenue 8%+, PBT growth 15%+, clear FY27 guidance) could unlock a sharp repricing given the analyst upside target; conversely, any margin pinch or guidance caution will extend the sell-off. Watch domestic traction first — that is the story.