Buy

Last Updated: 25 Feb 2026, 09:46 pm IST | Report Date: Feb 25, 2026

Sanofi Consumer Healthcare India Limited Stock Analysis

Name: Sanofi Consumer Healthcare India Limited (SANOFICONR) Stock Analysis
Brand: NSE India
Rating: 8 (1 reviews)

SANOFICONR NSE India

Sanofi Consumer Healthcare India Limited (SANOFICONR) is a India-based company listed on NSE. This AI-powered analysis provides investment insights based on quarterly earnings reports and financial performance metrics.

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Sanofi Consumer Healthcare India demonstrates strong operational recovery with FY2025 revenue growing 21% YoY to ₹8,784 million and net profit surging 33% to ₹2,401 million, reflecting successful product relaunches following voluntary recalls in the prior year. The company exhibits robust profitability with PAT margin expansion from 25% to 27%, healthy cash generation of ₹1,748 million from operations, and a debt-free balance sheet with ₹3,748 million in cash reserves. However, the substantial increase in employee costs (25% YoY to ₹1,288 million) due to new labour code compliance and a one-time related party transaction governance issue (₹111 million exports conducted before shareholder approval) present minor concerns that are largely offset by exceptional operational momentum and strong export growth of 158% YoY.

Based on: Sanofi Consumer Healthcare India Limited - Financial Results (25/2/2026) (Feb 25, 2026)

+ Key Strengths

Revenue from operations grew 21% YoY to ₹8,784 million in FY2025 versus ₹7,245 million in FY2024, with Q4 FY2025 revenue up 47% YoY to ₹2,510 million, indicating strong recovery momentum

Net profit increased 33% YoY to ₹2,401 million (EPS of ₹104.27 versus ₹78.59), with PAT margin expanding from 25% to 27%, demonstrating improved profitability despite higher operational costs

Export sales surged 158% YoY in FY2025 and 932% in Q4 FY2025 on a low base, reflecting successful diversification and capacity utilization following product relaunches

Strong cash position of ₹3,748 million with zero debt (only lease liabilities of ₹248 million) and operating cash flow generation of ₹1,748 million, providing significant financial flexibility

Successful relaunch of all four recalled products (Depura Adult, Combiflam Suspension, Allegra Suspension, Depura Kids) completed by Q3 FY2025, restoring domestic sales growth to 7% YoY after previous disruptions

Board recommended final dividend of ₹75 per share (face value ₹10), reflecting strong cash generation and confidence in sustainable earnings, translating to a 750% dividend rate

- Key Risks

Employee benefit expenses increased 25% YoY to ₹1,288 million from ₹1,027 million, with ₹24 million incremental cost from new Labour Codes notified in November 2025 creating ongoing cost pressures

Procedural lapse where ₹111 million in exports to Opella Healthcare International SAS occurred between October 10-28, 2025 before shareholder approval was obtained on October 29, 2025, raising governance concerns despite management's justification

Working capital deterioration with inventory increasing 51% to ₹619 million and trade receivables more than doubling to ₹296 million versus prior year, potentially indicating slower turnover or demand challenges

Significant increase in other expenses by 28% YoY to ₹2,105 million from ₹1,651 million, with quarterly other expenses at ₹574 million suggesting rising operational costs beyond inflation

Change in ultimate parent to Opal JVco S.a.r.l (controlled by PE firm Clayton, Dubilier & Rice) from Sanofi in April 2025 may introduce strategic uncertainty or altered support structures

High concentration in domestic consumer healthcare with single operating segment creates vulnerability to regulatory changes, competition, or market-specific disruptions without diversification buffer

Forward Outlook

The company has successfully completed its product relaunch cycle with all four recalled products (Depura Adult, Combiflam Suspension, Allegra Suspension, Depura Kids) back in the market by September 2025, positioning it for sustained domestic growth after a challenging FY2024. Strategic focus on export expansion is evident from the material related party transaction approval for ₹2,000 million in exports to Opella Healthcare International SAS, validated by third-party arms-length pricing, suggesting exports will remain a key growth driver in the near term. The company is investing in capacity with capital expenditure of ₹76 million in FY2025 and has ₹7 million in capital work-in-progress, indicating preparedness for volume growth. With domestic sales recovering (23% growth in Q4 FY2025) and export momentum accelerating (932% in Q4 FY2025 albeit on low base), the company appears well-positioned for double-digit revenue growth over the next 2-4 quarters, though margin expansion may be tempered by ongoing labour code cost impacts estimated at ₹24 million annually.

All Scores

Date	Report	Score	Sentiment	AI
Feb 25, 2026	Sanofi Consumer Healthcare India Limited - Financial Results (25/2/2026)	8.0	Buy	Claude
Sanofi Consumer Healthcare India demonstrates strong operational recovery with FY2025 revenue growing 21% YoY to ₹8,784 million and net profit surging 33% to ₹2,401 million, reflecting successful product relaunches following voluntary recalls in the prior year. The company exhibits robust profitability with PAT margin expansion from 25% to 27%, healthy cash generation of ₹1,748 million from operations, and a debt-free balance sheet with ₹3,748 million in cash reserves. However, the substantial increase in employee costs (25% YoY to ₹1,288 million) due to new labour code compliance and a one-time related party transaction governance issue (₹111 million exports conducted before shareholder approval) present minor concerns that are largely offset by exceptional operational momentum and strong export growth of 158% YoY. STRENGTHS: Revenue from operations grew 21% YoY to ₹8,784 million in FY2025 versus ₹7,245 million in FY2024, with Q4 FY2025 revenue up 47% YoY to ₹2,510 million, indicating strong recovery momentum / Net profit increased 33% YoY to ₹2,401 million (EPS of ₹104.27 versus ₹78.59), with PAT margin expanding from 25% to 27%, demonstrating improved profitability despite higher operational costs / Export sales surged 158% YoY in FY2025 and 932% in Q4 FY2025 on a low base, reflecting successful diversification and capacity utilization following product relaunches / Strong cash position of ₹3,748 million with zero debt (only lease liabilities of ₹248 million) and operating cash flow generation of ₹1,748 million, providing significant financial flexibility / Successful relaunch of all four recalled products (Depura Adult, Combiflam Suspension, Allegra Suspension, Depura Kids) completed by Q3 FY2025, restoring domestic sales growth to 7% YoY after previous disruptions / Board recommended final dividend of ₹75 per share (face value ₹10), reflecting strong cash generation and confidence in sustainable earnings, translating to a 750% dividend rate RISKS: Employee benefit expenses increased 25% YoY to ₹1,288 million from ₹1,027 million, with ₹24 million incremental cost from new Labour Codes notified in November 2025 creating ongoing cost pressures / Procedural lapse where ₹111 million in exports to Opella Healthcare International SAS occurred between October 10-28, 2025 before shareholder approval was obtained on October 29, 2025, raising governance concerns despite management's justification / Working capital deterioration with inventory increasing 51% to ₹619 million and trade receivables more than doubling to ₹296 million versus prior year, potentially indicating slower turnover or demand challenges / Significant increase in other expenses by 28% YoY to ₹2,105 million from ₹1,651 million, with quarterly other expenses at ₹574 million suggesting rising operational costs beyond inflation / Change in ultimate parent to Opal JVco S.a.r.l (controlled by PE firm Clayton, Dubilier & Rice) from Sanofi in April 2025 may introduce strategic uncertainty or altered support structures / High concentration in domestic consumer healthcare with single operating segment creates vulnerability to regulatory changes, competition, or market-specific disruptions without diversification buffer

What is the AI Stock Score?

The AI Stock Score is a composite rating from 0-10 generated by analyzing quarterly earnings reports using three leading AI models (Google Gemini, Anthropic Claude, and OpenAI ChatGPT). Each AI independently evaluates financial performance, growth prospects, risks, and market positioning to provide an objective investment perspective.

How should I interpret Buy/Hold/Sell ratings?

Buy (7.0-10.0): Strong fundamentals and positive outlook. Hold (4.0-6.9): Mixed signals, suitable for existing positions. Sell (0-3.9): Deteriorating fundamentals or significant risks. These are AI-generated opinions for informational purposes only, not investment advice.

How is the composite score calculated?

The composite score is the mathematical average of the latest scores from each AI provider. For example, if Gemini rates 7.5, Claude rates 4.5, and ChatGPT rates 6.0, the composite score would be (7.5+4.5+6.0)/3 = 6.0. This multi-AI approach reduces bias from any single model.

How often are scores updated?

Scores are automatically generated within hours of quarterly earnings results being published on NSE. The system monitors earnings announcements 4 times daily and processes new reports immediately. Check the "Last Updated" date at the top of this page for the most recent analysis timestamp.

Is this financial advice?

No. This is AI-generated analysis for informational and educational purposes only. MarketsHost is not a SEBI-registered Research Analyst or Investment Adviser. AI models can produce inaccurate results. Always consult a qualified financial advisor and conduct your own due diligence before making investment decisions.