Q2 2026 Sanofi India Ltd Earnings Call

August 5, 2026

Operator: Good evening, everyone. A very warm welcome to the investor conference call hosted by Sanofi India Limited. Joining on the call we have with us Mr. Deepak Arora, Managing Director, Mr. Rachid Ayari, Full-time Director and CFO, and Mr. Haresh Vala, Company Secretary from Sanofi India Limited. Before we begin this investor call, there are three important announcements. Please note that the proceedings of this meeting are recorded. Secondly, please note a standard disclaimer that there are certain statements in this call which may be forward-looking, and the actual results may vary depending on the various other factors which may impact the future performance. Moving on to the agenda, we will cover the performance for Q2 and H1 ended June 2026 and other highlights. Thereafter, we will have a Q&A session which will end at exactly sharp 5:00 PM.

Speaker #1: Before we begin this investor call, there are two important announcements. Please note that the proceedings of this meeting are recorded. Secondly, please note a standard disclaimer that there are certain statements in this call which may be forward-looking, and the actual results may vary depending on various other factors which may impact future performance.

Operator: Please note that the proceedings of this meeting are recorded. Secondly, please note a standard disclaimer that there are certain statements in this call which may be forward-looking, and the actual results may vary depending on the various other factors which may impact the future performance.

Speaker #1: Moving on to the agenda, we will cover the performance for the quarter and half-year ended June 2026 and other highlights. Thereafter, we will have a Q&A session, which will end exactly at 5:00 p.m. sharp.

Operator: Moving on to the agenda, we will cover the performance for Q2 and H1 ended June 2026 and other highlights. Thereafter, we will have a Q&A session which will end at exactly sharp 5:00 PM.

Speaker #1: All investors and participants are kindly requested to keep their questions brief and to avoid any repetition. As a reminder, all participant lines will be in listen-only mode.

Operator: All investors and participants are please requested to keep their questions brief and to avoid any repetition. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star and zero on your touchtone phone. I now hand over the proceedings to the management to take us through the presentation.

Speaker #1: And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star and zero on your touchtone phone.

Speaker #1: I now hand over the proceedings to the management to take us through the presentation.

Speaker #2: Thank you so much, and a very good evening to everyone. I'm very, very excited and delighted to share the domestic results of Q2 2026 on behalf of the India Leadership Team. Along with me, I have Rashid and Harish.

Deepak Arora: Thank you so much, and a very good evening to everyone. I am very excited and delighted to share the domestic results of Q2 2026 on behalf of the India leadership team. Along with me, I have Rachid and Haresh. Let's start with the good news first. I think a strong momentum, further boosted by diabetes business. As promised last time, we will be investing ourselves into making sure that we optimize and maximize diabetes business unit, growing by double digits, and being above market growth. Here we are. If you look at the Q2 results, close to around 14% double-digit growth powered by innovative portfolio, which is both with Toujeo and Soliqua.

Speaker #2: So let's start with the good news first. I think there's strong momentum, further boosted by the diabetes business. As promised last time, we will be investing ourselves into making sure that we optimize and maximize the diabetes business unit, growing by double digits and being above market growth.

Speaker #2: And here we are. If you look at the Q2 results, we saw close to 14% double-digit growth powered by an innovative portfolio, which includes both Toujeo and Soliqua.

Speaker #2: This was not possible without looking at how we did transformation last year—bringing in discipline and execution, and re-looking into some of the strategic levers like public sector, and trying to accelerate in public sector by expanding into new accounts of care or state accounts with Toujeo and Soliqua. You can see that close to around 70% growth is attributed to that discipline of execution, expansion, and acceleration in public sector, while we continue developing strategies with diabetes care to make sure that we reach the last milestone with the help of our digital footprint.

Deepak Arora: This was not possible without looking at how we did transformation last year, bringing in discipline and execution and re-looking into some of these strategic levers like public sector and trying to accelerate in public sector by expanding into new accounts of care or state accounts with Toujeo and Soliqua. You can see that close to around 70% growth is attributed by that discipline of execution, expansion, and acceleration in public sector while we continue developing strategies with diabetes care in terms of making sure that we reach the last milestone with help of digital footprint. Also happy to share that there is a 2% growth in Q2 over last year's Q2 based on the continued ROI or return of investment, which we looked into for partnerships with Emcure and Cipla with the expanded footprint and reaching the last milestone for our patients requiring an established portfolio.

Speaker #2: Also happy to share that there's a 2% growth in Q2 over last year's Q2, based on the continued ROI, or return on investment, which we looked into for partnership with NCURE and Cipla.

Speaker #2: With the expanded footprint and reaching the last milestone for our patients requiring an established portfolio, this is doubled by continuous optimization of tax, which Rashid will take us through.

Deepak Arora: This is coupled by continuous optimization of resources and profit before tax, which Rachid will take us through. Overall, very happy with and pleased with the Q2 results, and I would say very optimistic also as we move forward based on what we have seen in consecutive two quarters of what diabetes business unit is giving back to us. Can we go to the next slide? Just talking about the performance, in the next slide, we are talking about how we delivered it. The scale of innovation was met with the value proposition and the equities Sanofi holds in the diabetes market. Simply the strategy of owning Lantus and growing Toujeo and Soliqua. If you look at, we still continue to be a market leader, close to around 47% market share by value and volume acceleration of +6% with Lantus.

Speaker #2: So, overall, very, very happy with and pleased with the Q2 results, and I would say very optimistic also as we move forward based on what we have seen in consecutive two quarters of what the diabetes business unit is giving back to us.

Speaker #2: Can we go to the next slide? Just talking about the performance—this is basically, in the next slide, we're talking about how we delivered it.

Speaker #2: The scale of innovation was met with the value proposition and the equity Sanofi holds in the diabetes market. Simply, the strategy of owning Lantus and growing Toujeo and Soliqua.

Speaker #2: If you look at it, we still continue to be a market leader, with close to around 47% market share by value, and volume acceleration of plus 6% with Lantus.

Speaker #2: Tojo, being the second preferred second-generation basal insulin, has grown by 11% in the market share in value, and if you can look at the basal analog market share which is, you know, which is the result of both Lantus and Tojo, we have 58% value in the market share and close to around 61% in the volume.

Deepak Arora: Toujeo being the third-quarter second-generation basal insulin has grown by 11% in the market share in value. If you can look at the basal analog market share, which is the result of both Lantus and Toujeo, we have 58% value in the market share and close to around 61% in the volume. This really talks about our consolidated leadership in basal analog segment as we continue. Last but not the least, the icing on the cake is the shaping of Soliqua, which happened last year. It is continuing despite of erosions happening in GLP-1 market. Soliqua continues to grow by 16% quarter by quarter. Innovation is the key, and innovation is just not about bringing new products. Innovation is about also kind of advocacy and adoption we are doing in the market.

Speaker #2: This, too, really speaks to our consolidated leadership in the basal analog segment as we continue. And last but not least, the growth of Soliqua—which started last year—is continuing, despite erosions happening in the GLP-1 market.

Speaker #2: Soliqua continues to grow by 16% quarter by quarter. Innovation is the key, and innovation is not just about bringing new products. Innovation is also about advocacy and adoption.

Speaker #2: We are doing this in the market. If you look at it, the big aspect is about the dataset, which is actually augmented with the Indian dataset coming from real-world experience narratives and Indian patients. This is strengthening Tojo and Soliqua positioning, also in the Indian guidelines.

Deepak Arora: If you look at the big aspect is about the DESAS data set, which is actually added with the Indian data set coming from the real-world experience narrative and the Indian patients, which is strengthening Toujeo and Soliqua positioning also in that Indian guidelines. We have Soliqua and Toujeo real-world experience publications, which were close to around 4 between Q4 to Q2 of this year. Landmark real-world evidence study, which was a scientific evidence of dissemination and fuel advocacy. Last but not the least, continuous preparing how do we make sure that the overall insulin initiation to intensification is simplified by bringing some novel devices and AI platforms to strengthen patient support program. Extend, as we talk about own and grow, talk about innovate, we need to make sure that we extend the access and equality in the access to the public sector.

Speaker #2: So we have Soliqua and Tojo real-world experience publications, which are close to around four, between Q4 to Q2 of this year. The landmark real-world evidence study was a scientific evidence of dissemination and QL advocacy. And last but not least, we continue preparing—how do we make sure that the overall insulin initiation to intensification is simplified by bringing some novel devices and AI platforms to strengthen the patient support program.

Speaker #2: As we talk about own and grow, and as we talk about innovate, we need to make sure that we extend access and equality in access to the public sector.

Speaker #2: And with this, where we shared 70% growth in the public sector by expanding into the care segment, it tells us about the pathway we are opting for in terms of continuous diabetes franchise growth.

Deepak Arora: With this, where we shared 70% growth in the public sector by expanding into the care segment tells us about the pathway which we are opting for in terms of continuous diabetes franchise growth. Last but not the least, digital outreach in tier 2 and tier 3 markets despite of the optimization. This gives us an overarching promise with what we shared with you all, leveraging existing diabetes portfolio, maximizing it for a sustainable and profitable growth. With this, I hand over to Rachid.

Speaker #2: And last but not least, digital outreach in tier two and tier three markets, despite the optimization. So this gives us an overarching promise. What we shared with you was leveraging the existing diabetes portfolio, maximizing it for sustainable and profitable growth.

Speaker #2: With this, I hand over to Rashid.

Speaker #3: Okay. Thank you. Thank you, Deepak. I still—

Rachid Ayari: Thank you, Jitpat.

Deepak Arora: Oh, sorry.

Speaker #2: Oh, sorry.

Rachid Ayari: Yeah.

Speaker #3: Yeah.

Deepak Arora: While we talk about sustainable and profitable growth, we also have to give back to the society, and very happy to share that our CSR 2026 update in terms of our promise being made on the commitment to CSR project, we are actually ahead of it, reaching out to build stronger communities. By end of this year, around 600,000 plus direct beneficiaries will be reached with different programs. Example is Kids and Diabetes in Schools, as well as mobile medical units.

Speaker #2: While we talk about sustainable and profitable growth, we also have to give back to the society. I am very happy to share that our CSR 2026 update, in terms of our promise made on the commitment to the CSR project, shows that we are actually ahead of it.

Speaker #2: Reaching out to build a stronger community. By the end of this year, around 600,000-plus direct beneficiaries will be reached with different programs; an example is Kids and Diabetes in School, as well as mobile medical units.

Speaker #2: And we recently added an MOU signature with the National Health Mission in Madhya Pradesh, and we are making sure that we expand from what we have been doing in Lucknow, in Uttar Pradesh, in Maharashtra, Goa, and with this addition to Madhya Pradesh in terms of bringing and expanding our flagship CSR project kits as well as the mobile medical units to make sure that we have early screening, screening to diagnosis, and treatment—closing the loop in non-communicable diseases.

Deepak Arora: We recently added an MoU signature with National with the NHM, in Madhya Pradesh, and we are making sure that we expand from what we have been doing in Lucknow, in Uttar Pradesh, in Maharashtra, Goa, and with this addition to Madhya Pradesh, in terms of bringing and expanding our flagship CSR project, Kids, as well as the mobile medical units, to make sure that we have early screening for diagnosis and treatment, closing the loop in non-communicable diseases. Thank you. Rachid, over to you.

Speaker #2: Thank you, Rashid. Over to you.

Speaker #3: Yeah. Thank you, Deepak. Good evening, everyone. So in our presentation today, we try to to be brief. So we we give you more time, you know, for for your question and to clarify the, you know, any any points because, you know, there are a lot of fluctuation in the financial statement.

Rachid Ayari: Thank you, Deepak. Good evening, everyone. In our presentation today, we try to be brief so we give you more time for your question and to clarify any point, because there are a lot of fluctuation in the financial statement. I hope that you will ask all the question that are not clear yet. As mentioned by Deepak, strong quarter, we try to detail the total income, so +7%, mainly 94% where we focus on the sales, which is growing by 6% between the domestic and the export. The other operating income, it is mainly related to service that we are providing to a certain entity of the group, mainly the private company in India and the Consumer Healthcare. For the other income, it is mainly the interest on the deposit and the FX gain.

Speaker #3: So I I hope that you you will ask all the question that are not clear yet. So as mentioned by Deepak, strong quarter. So we try to detail the total income so plus 7% mainly 94% where we we focus on the sales which is growing by 6% between the domestic and the export.

Speaker #3: The other operating income is mainly related to services that we are providing to certain entities of the group, mainly the private company in India and the consumer health.

Speaker #3: And for the other income, it's mainly the interest on the deposit and the FX gain. So, strong quarter. That allowed us to offset Q1, where we had certain fluctuations coming from the partnership and the transition period.

Rachid Ayari: Strong quarter, that allow to offset the Q1, where we have certain fluctuation coming from the partnership and the transition period. If we look to the YTD right now, June 2026, we are at -4%, offsetting significant gap that we had in Q1. -2% on the sales, domestic and export. It is mainly coming from the export, where we are losing in base. Other operating income, it is related mainly to Consumer Healthcare, where there are certain services that we have provided in the past that we are not providing anymore as today. Can you move to the next, please? If you take another quarter, as mentioned by Deepak, +8% for the domestic, -2% in the export part. We see the same trend in YTD H1.

Speaker #3: And if we look to the YTD right now, June 2026, we are at minus 4%, offsetting the significant gap that we had in Q1. Minus 2% on the sales.

Speaker #3: Domestic and export. And it's mainly coming from from the export where we are losing a bit. And other operating income, it's we we we it's related mainly to consumer health where there are certain service that we are provided in in the past that we are not providing any anymore as as today.

Speaker #3: Can you move to the next, please? Yeah. So so if you take, you know, the quarter as mentioned by Deepak, plus 8% for the domestic, minus 2% in the in the export part.

Speaker #3: We see the same trend in year-to-date, H1. So, minus 2% on the top line, including export and domestic, with good performance from diabetes—so, we grew plus 17%.

Rachid Ayari: -2% on the top line, including export and domestic, with good performance from diabetes, so double-digit growth, +17%. This is a great achievement for Sanofi India, thanks to Deepak and the team, of course, and the restructuring that was done in Sanofi India and the new strategy where there is a focus on the new product and also on the public sector, which is paying significantly in the diabetes part. Still in the partnership is impacted, as mentioned in Q1 and in the different interactions, by one-off from 2025 related to safety stock or certain transaction agreed with the partner in the transition phase. Export, more or less, we are stabilizing. We are facing certain challenge from Australian market, where there's huge competition in this market for the mature product.

Speaker #3: And this is a great achievement for Sanofi India, thanks to Deepak and the team, of course. And the retraction was done in Sanofi India.

Speaker #3: And the new strategy, where there is a focus on the new products and also on the public sector, which is paying significantly in the diabetes part.

Speaker #3: Still in in the partnership is impacted as mentioned in Q1 and in the different interaction by one of from 2025 related to safety stock or certain transaction agreed with a partner in the in the transition phase.

Speaker #3: Exports, more or less, are stabilizing. And we are facing certain challenges in the Australian market, where, as you know, there is huge competition in this market for the mature products.

Speaker #3: But the good thing is that, you know, the searches that we put in place are offsetting, you know, a significant part of this, thanks to the specialization of the Goa site in certain products that are manufactured worldwide from the Goa site.

Rachid Ayari: The good thing that the strategies that we put in place, we are offsetting a significant part of sales thanks to specialization of the Goa site in certain products that are manufactured worldwide from Goa site. Yeah. Can we move to the next? In terms of operating expenses, a lot of focus and financial discipline on the financial without impacting any project where we see that there is a ROI. There are certain things that we see that are not anymore important to do or to impact our top line. If we look from quarter perspective, it's -5%. In YTD H1, -15%, we continue, this will be the trend without impacting, of course, the top line.

Speaker #3: Yeah. Can we move to the next? Again, you know, in term of operating expenses, we a lot of focus and financial discipline on the financial without impacting any project where we we we see that there is there is return on investment.

Speaker #3: So, there are certain things that we see that are not anymore important to do or to impact our top line. So if we look from a quarter perspective, it's minus 5%.

Speaker #3: In YTD, H1, minus 15%. And we we we continue this this is will be the trend without impacting, of course, the the the top line.

Speaker #3: So, for this part of the OPEX, we focus only on the personnel cost, employee cost, and the other OPEX, because for depreciation and financial cost, there is no major fluctuation.

Rachid Ayari: For this part of the OpEx, we focus only on the personnel cost, operator and the other OpEx, because the depreciation and finance cost, there is no major fluctuation, we focus only on this two part. Can we move to the next? Regarding the profit before tax and exceptional items, strong performance for the quarter with double-digit growth, +19%, from INR 94 crore to INR 112 crore. We see a significant improvement as well, +3% in terms of percentage to net sales from 24% to 27%. This is on a quarterly basis. If we look to the H1, we see -4%, and this is mainly explained again, I'm sorry that I'm coming again to the transition period for the partnership that impacted Q1. This is the impact.

Speaker #3: So we focus only on these two parts. Can we move to the next? Regarding the profit before tax and exceptional items, it's a strong performance for the quarter with double-digit growth, plus 19%.

Speaker #3: So, from ₹94 crores to ₹112 crores. And we see a significant improvement as well, plus 3% in terms of percentage to net sales, from 24% to 27%.

Speaker #3: This is on quarterly basis. And if we look to the H1, so we see minus minus 4%. And this is mainly explained again, I'm sorry that I'm coming again to the to the transition period or the partnership that impacted Q1.

Speaker #3: This is the impact and we were in the yesterday we were in the in the board and we tried to eliminate all one off and you find out that you know, if you take all the one off, you know, the top line will will be positive and if you take the bottom line, you know, the profit before before tax and exceptional items, with we we have a kind of you know, high digit growth if we exclude you know, all the one off from last year and all what is related to this transition period with with the partners.

Rachid Ayari: Yesterday, we were in the board, we tried to eliminate all one-offs, we find out that if you take all the one-off, the top line will be positive. If you take the bottom line, the profit before tax and exceptional items, we have a kind of high digit growth if we exclude all the one-off from last year and all that is related to this transition period with the partners. Before concluding and moving to the Q&A, just when you look to the financial statement, you see that it's a very healthy situation. If you look to the cash of the company, we are growing by 34% in terms of cash. No major risk that we're facing. The company remains strong, I hope that we continue to deliver and hit the expectation.

Speaker #3: Before concluding, I'm moving to the Q&A. Just so you know, when you look at the financial statements, you see that it's a very healthy situation when you look at the cash of the company.

Speaker #3: So we we are growing by 34% in term of cash. No major risk that we're faced. So the the company remain strong and we I I hope that we we continue to deliver on as per expectation.

Speaker #3: I think this is the last one—the last slide from my side, right? There is one. To Deepak, yes.

Rachid Ayari: I think this is the last slide from my side, right? There is one, Deepak, yeah.

Speaker #2: I think to sum it up, thanks, Rashid. When we talk about continued progress and clear priorities, these are always set on the execution the business strategy financials, but I think starting with people.

Deepak Arora: I think to sum it up, thanks, Rachit. When we talk about continued progress and clear priorities, these are always set on the execution, the business strategy, financials, but I think starting with people. As you are aware, with the transformation done last year, it was all to make sure that we are building right capabilities and leadership changes to be remain focused. Bringing in some kind of vigilance in terms of the way world looks at AI today and how AI can help not only internally but externally in terms of making sure from screening to diagnosis to treatment, the pathway is streamlined and there are bridges in terms of closing the loop with help of new technology. Execution remains the main stage. The strategic transformation, which was completed, focus on insulin and winning partnership model for legacy brands is key.

Speaker #2: And as you are aware, with the transformation done last year, it was all to make sure that we are building the right capabilities and leadership changes to remain focused.

Speaker #2: And bringing in a some kind of vigilance in terms of the way world looks at AI today and how AI can help not only internally but externally in terms of making sure from screening to diagnosis, diagnosis to treatment, the pathway is streamlined and there are bridges in terms of closing the loop with help of new technology.

Speaker #2: Execution remains the main stage. The strategic transformation which was completed, with a focus on insulin and a winning partnership model for legacy brands, is key. Delivering results today really shows the strong execution driving growth and significant margin expansion through operational excellence and alliances.

Deepak Arora: Delivering results today really shows the strong execution, driving growth, significant margin expansion through operational excellence and alliances. Talking about business, I think we are already there in terms of future ready to go market capabilities. Testimony is the consecutive two quarters gain and the growth which we have seen with diabetes portfolio being very customer-centric in AI-enabled initiatives. Last but not the least, making sure we are bringing some innovative customer journey orchestrations with devices and processes. Last but not the least, I will sum it up by saying 2026 marks a year of acceleration for diabetes business unit, with 17% growth in the H1. This talks about the ready capabilities of a modern organization business model supporting sustainable profitable growth and a strong Q2 with 19% profit before tax, driven by business and OpEx efficiency.

Speaker #2: Talking about business, I think we are already there in terms of future ready to to to go market capabilities. And testimony is the consecutive two quarters gain and the growth which we have seen with diabetes portfolio being very customer centric in a with in AI enabled initiatives and last but not the least, making sure we are bringing some innovative customer journey orchestrations with devices and and and processes.

Speaker #2: Last, but not least, I will sum it up by saying that 2026 marks a year of acceleration for the Diabetes business unit, with 17% growth in the first half.

Speaker #2: And this talks about the ready capabilities of a modern organization business model supporting sustainable, profitable growth, and a strong Q2 with 19% profit before tax, driven by business and OPEX efficiency throughout.

Speaker #2: With this, we will open up for questions and answers. Happy to take your questions, between me and Rashid.

Deepak Arora: With this, we will open up for question answers. Happy to take your questions between me and Rachit.

Speaker #1: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Operator: Thank you very much. We now begin the question and answer session. Anyone who wishes to ask a question may press star 1 on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star 2. Participants are requested to use handsets while asking a question. Participants, kindly keep your questions brief and try and avoid any repetition. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Rajkumar Vaidyanathan from RK Investments. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #1: Participants, kindly keep your questions brief and try to avoid any repetition. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

Speaker #1: First question is from the line of Raj Kumar Vaidyanathan from RK Investments. Please go ahead.

Speaker #3: Yeah, good evening. Thanks for the opportunity. First of all, congrats on the good set of numbers in the diabetic segment. So, the question is on the partnership business.

Rajkumar Vaidyanathan: Yeah, good evening. Thanks for the opportunity. First of all, congrats for the good set of numbers on the diabetic segment. The question is on the partnership business, why there is a prolonged anemic growth here? I think the management is not kind of explaining this piece, while you are answering the good part of the business elaborately, but this part is not being articulated well to the investors. I would request more color on this.

Speaker #3: Why is there a prolonged, you know, anemic growth here? I think the management is not really explaining this piece—you know, while you're answering the good part of the business elaborately, this part is not being, you know, articulated well to the investors.

Speaker #3: So, I would request more color on this.

Speaker #4: Yeah, so I will I will take that if you you wanted to develop more Deepak. So we we we signed you know, the partnership for cardiovascular and CNS in March 2024.

Rachid Ayari: Yeah. I will take that, Raj, you wanted to develop more, Deepak. We signed the partnership for cardiovascular and CNS in March 2024. The first year, the agreement with the partners that we start billing their safety inventory in Q1 in 2025. This was done once we prepared all the safety stock was done in Q1. This was impacting the performance of Q1 2026 because there was a kind of supply of safety stock in Q1 2025 because what we are booking in our accounts is the sales in, the primary sales to the partners. This is one. There are other agreements with the partners related to sales returns in this transition period. The fourth agonist, it was one-off. It was positive in Q1 2025.

Speaker #4: And you know, the first year so the first year the agreement with with the partners that we we start building their inventory safety inventory in in Q1 in 2025.

Speaker #4: And this is was done once we we prepared you know, all the the safety stock was done in Q1. This is was impacting you know, the performance of of Q1 2026 because there there was a kind of supply of safety stock in Q1 2025 because we are working on you know, what we are booking in our accounts is the the sales in the sales to the primary sales to to the partners.

Speaker #4: This is one. There are other agreements, you know, with the partners related to sales returns during the transition period. The first was agreed, and this was one of them. It was positive in Q1 2025.

Speaker #4: So this is the major, let's say, impact—that we're positive in Q1 2025. And then, you know, if you take them out in 2026, this is what impacted the performance in Q1 2026, and systematically the H1 2026.

Rachid Ayari: This is the major, let's say, impact that we are positive in 2025, Q1, and then if you take them out in 2026, this is what impacted the performance in Q1 2026 and systematically the H1 2026.

Speaker #3: Yeah, but Rashid, see even Q2, you're showing only 2% growth, and you know, it is not even in line with the industry. And if you see, the cardio and the CNS segments have done very well in this quarter.

Rajkumar Vaidyanathan: Rachid, even Q2, you're showing only 2% growth. It is not even in line with the industry. If you see the cardio and the senior segments have done very well in this quarter. When do you think you will catch up with the industry? There is no grass to net issue also here, right? We are comparing apple to apple. That's the question the investors have, because people invest when you show growth. If there is no growth in the top line, then there'll not be much interest from the institutional segment, right?

Speaker #3: So, when do you think you will catch up with the industry? Because there is no graphs to net issue also here, right? So, we are comparing apple to apple.

Speaker #3: So that's the question. That's the question the investors have, because people invest when you show growth. I mean, if there is no growth in the top line, then, you know, there will not be much interest from the institutional segment, right?

Speaker #4: No, you are right. You know, I agree. We'll take Q2. It's apple to apple. Yeah. So,

Rachid Ayari: No, you are right. If we take Q2, it's apple to apple.

Speaker #3: Yeah, so so basically I want to know whether this yeah. So the question is, is this anemic growth is more is it a structural issue or is it more something you know, headwind just for a you know, few quarters?

Rajkumar Vaidyanathan: Basically, I want to know whether.

Rachid Ayari: We were expecting.

Rajkumar Vaidyanathan: Yeah. The question is this anemic growth, is it a structural issue, or is it more something with a headwind just for a few quarters, then you'll come back to the normal industry led growth? I just want to know what time frame you have. If that can be articulated, that will be helpful.

Speaker #3: Then you will come back to normal. What time frame do you have? If that can be articulated, that will be helpful.

Speaker #4: Yeah, the the the partnership part is you know, is really strategic for us and very important for for our business. So there is a strict follow up with the steering committee and the organization is focused on that.

Rachid Ayari: Yeah. The partnership part is really strategic for us and very important for our business. There is a strict follow-up with the steering committee, and the organization is focused on that. Look, the 2%, yes, I agree that it's not as per our expectation, but we are working with the partners to see how they can reorganize, reinvest. This is what happened. We see that they are reorganized their team to have more focus on the portfolio. This is as today, the investment that has been done from the partner. Still, the competition in the market is quite aggressive in this portfolio. Maybe 2026, I'm not expecting that we will reach the industry growth. 2027, this is what we are evaluating right now. I don't know, Deepak.

Speaker #4: So, look, the 2%—yes, I agree that it's not as per our expectation, but we are working with the partners to see how they can, you know, reorganize and reinvest.

Speaker #4: And this is what happened. So we see that they are reorganizing their team to have more focus on the portfolio.

Speaker #4: So this is as of today, so the investment that has been done from the partner. But still, you know, the competition in the market is quite aggressive in this portfolio.

Speaker #4: So maybe 2026, I don't I'm not expecting that we we will reach the industry growth 2027. This is what we were we we are evaluating right now.

Speaker #4: I don't know, Deepak, if you want to.

Speaker #3: No, just to add to Rashid, we have to look at the partnership from the three aspects of CV, CNS, and OADs.

Deepak Arora: Just to add to Rachid, we have to look at the partnership from the three aspects of CV, CNS, and OADs, antidiabetic. If you look at the last changes which you did in the partnership with Emerald and with Emcure, and today when we just divide it and look at OAD segment, for example, the sales out from the partner in Emcure is meeting the market growth, which gives us a very promising kind of a direction that we are on the right track. It's taking little time for others, but I think as we move couple of quarters, we should be getting closer to the market growth, if not on the market growth. Knowing that this is generic market, everyone is playing very competitive, but I can assure Cipla and Emcure are not leaving any grounds to make this partnership do what it's really intended to.

Speaker #3: Anti-diabetic. And if you look at the last changes which you did in the partnership, it is with Emerald and with NCURE. And today, when we look at—

Speaker #3: We just divided and looked at the OAD segment. For example, the sales out from the partner in NCURE is meeting the market growth, which gives us a very promising kind of direction that we are on the right track.

Speaker #3: It's taking a little time for others, but I think as we move a couple of quarters ahead, we should be getting closer to the market growth, if not on par with the market growth, knowing that this is a generic market.

Speaker #3: Everyone is playing very competitively, but I can assure you that Cipla, NCURE, and we are not leaving any ground to make this partnership do what it is really intended to.

Speaker #3: Okay. Okay. Thank you, Deepak. Sorry to labor on this point. So is there a is there a issue that that the NCURE and Cipla are pushing their own products sidelining the Sanofi products?

Rajkumar Vaidyanathan: Okay. Thank you, Deepak. Sorry to labor on this point. Is there an issue that the Emcure and Cipla are pushing their own products, sidelining the Sanofi products? Will that be a situation or-

Speaker #3: Will that be a situation, or...?

Speaker #4: No, there's a different.

Deepak Arora: There's a difference. We can tell you very clearly, as a partnership, it's a win-win, and Emcure is really invested as we are invested. While the other product which they are bringing in have a separate team. They have a team which is standalone team for Emerald and also for the CV portfolio. That's assured that there's no dilution happening because of the new products coming into their pipeline.

Speaker #3: No, that that can we can tell you very clearly as a partnership, it's a win-win. And NCURE is really invested as we are invested while the the the other product which they are bringing in have a separate team.

Speaker #3: But they have a team which is standalone team for Emerald and also for the CV portfolio. So that's just assure that there's no digression happening because of the new products coming into their pipeline.

Speaker #4: But it's a very good point. You know, when we selected the partner, we have taken this into consideration to avoid having such risk when we start running this partnership.

Rachid Ayari: It's a very good point. When we selected the partner, we have taken in consideration at this point to avoid having such risk when we start running these two partnerships. As mentioned by Deepak, today, there is no such risk in this partnership. We are working like one team, honestly, a lot of interaction. When there is a problem, we try to fix it together, no risk from this part.

Speaker #4: But as mentioned by Deepak, so today we there is no no risk such risk, you know, in the in this partnership. It's it's we are working like one team honestly.

Speaker #4: So, a lot of interactions. And when there is a problem, we try to fix it together. So, no risk from this part.

Speaker #3: Okay. Okay. Thank you, Rashid. Thank you, Deepak. And all the best, Rashid, for your next venture.

Rajkumar Vaidyanathan: Okay. Thank you, Rachid. Thank you, Deepak. All the best, Rachid, for your new venture.

Speaker #4: Thank you. Thank you. Oh, thank you so much. Thank you so much.

Rachid Ayari: Thank you.

Deepak Arora: Oh, thank you so much.

Operator: Thank you very much. Participants, you may press star and one to ask a question. Ladies and gentlemen, you may press star and one to ask a question. Participants, you may press star and one to ask a question. Next question is from Lana Rosnik Oza from Nine Grace. Please go ahead.

Speaker #1: Thank you very much. Participants, you may press star one to ask a question. Ladies and gentlemen, you may press star one to ask a question.

Speaker #1: Participants, you may press star and one to ask a question. The next question is from Lana Grosnik Oza from Nine Days. Please go ahead.

Speaker #3: Yeah, hi. My question was that we are very focused on diabetes. So, beyond diabetes, is there any initiative to get into any new segment of the Indian market?

Lana Rosnik Oza: Yeah, hi. My question was that we are very focused on diabetes. Beyond diabetes, is there any initiative to get into any new segment of the Indian market? Can this 14% growth, which we saw in last quarter, will this be sustainable in the next two quarters till the end of this calendar year?

Speaker #3: And can this 14% growth, which we saw in the last quarter, be sustainable in the next two quarters until the end of this calendar year?

Rachid Ayari: Let me start and you continue. Go ahead. I give you the 14% growth. Sustainable. Look, it's a good point. We are not only focusing in diabetes, in fact. If you take the partnership, the cardiovascular market is still very important for us, and the CNS with Cipla, the same. This we should not neglect, and there is a lot of focus, and it's part of our strategy. Now, regarding the diabetes, we think that there is still significant opportunity in India market, where the underdiagnosis patients is still there. Today we are talking about 100 million patients. I believe in the next upcoming years, it will evolve. With our portfolio for the insulin part, we had a lot of discussion and question regarding the GLP-1.

Speaker #4: Can you repeat that? Can I interrupt you?

Speaker #3: Go ahead. Go ahead.

Speaker #4: I give you the 14%—sustainability. Look, you know, it's a good point. But we are not only focusing on diabetes, in fact.

Speaker #4: You know, if you take the partnership, the cardiovascular market is still very important for us, and the CNS with Cipla, the same. So this is something we should not neglect, and there is a lot of focus and it's part of our strategy.

Speaker #4: Now, regarding diabetes, we think that there is still significant opportunity in the India market, where the issue of underdiagnosed patients is still present.

Speaker #4: And today we are talking about 100 million patients, right? So and in in the next upcoming years, it will it will evolve. So with our portfolio for you know, the insulin part that we we had a lot of discussion and question regarding the GLP-1, we don't think that there will be any any impact for for the insulin part.

Rachid Ayari: We don't think that there will be any impact for the insulin part, we are expecting that opportunity is still there in the market. Deepak, I think you can develop better than me.

Speaker #4: And we are expecting that, you know, opportunity is still there in the market. And Deepak, I think you can develop this better than me.

Speaker #3: I think what we have seen in the last two quarters gives us a very clear direction that, you know, the equity of Sanofi insulin portfolio is very high in the market, and we need to continue leveraging it.

Deepak Arora: I think what we have seen in the last two quarters gives us a very clear direction that the equity of Sanofi Insulin portfolio is very high in the market, we need to keep continuing leveraging it. I don't know whether it's 14%, 15% or 10%, but yes, the promise, what we have with ourselves and to our patients and to our community is that we'll continue doing what we can do to support these patients in their progressive disease. Unfortunately, diabetes being a progressive disease. Making sure that we bring in innovation from patient support program to early diagnosis to treatment, also getting into the public sector to bring innovation into public sector for getting these patients equitable access to Toujeo or Soliqua.

Speaker #3: So, I don't know whether it's 14%, 15%, or 10%, but yes, the promise that we have with ourselves, to our patients, and to our, you know, community is that we'll continue doing what we can do to support these patients in their progressive disease.

Speaker #3: Unfortunately, diabetes is a progressive disease. And making sure that we bring in innovation from patient support programs to early diagnosis to treatment, and also getting into the public sector to bring innovation into the public sector for getting these patients equitable access to TOJO or SOLIQUA.

Speaker #3: So, that is what I can assure you—we are not leaving any stone unturned to make sure that what we saw in the first half does not repeat in the second half.

Deepak Arora: What I can assure you, that we're not leaving any grounds to make sure that what we have seen in the H1 to repeat it in H2.

Speaker #3: Thanks. One more question: are there any identified products from the parent’s basket which can be brought into India going forward, based on whatever internal discussions we have had with our parent?

Lana Rosnik Oza: Thanks. One more question was that, are there any identified products from the parent's basket which can be brought into India going forward, based on whatever internal discussions we have with our parent?

Speaker #3: So at this moment, when we look at it, we need to complement what we have today, right? So diabetes is the cornerstone for us at this moment, followed by CV and CNS.

Deepak Arora: At this moment, when we look at, we need to complement what we have today. Diabetes is which are the cornerstone for us at this moment, followed by CV and CNS. Currently, we are evaluating whatever comes in the pipeline for diabetes. Surely India will be a place to really focus upon. For this moment, whatever is available is the innovative devices, Bluetooth devices, AI platforms. We are working on business cases to see how we can complement and make it very simple for our patients who are taking insulin on a daily basis. Rest of the stuff, as the pipeline evolves, we will keep our discussions close to our parent company.

Speaker #3: Currently, we are evaluating whatever comes in the pipeline for diabetes. Surely, India will be a place to really focus upon for this moment.

Speaker #3: Whatever is available is the innovative devices, Bluetooth devices, AI platforms. We are working on business cases to see how we can complement these and make it very simple for our patients who are taking insulin on a daily basis.

Speaker #3: The rest of the matters will evolve as the pipeline develops. We will keep our discussions close to our parent company. Okay. And the last question, sir, is not before the demerger.

Lana Rosnik Oza: Okay. The last question, sir, is on before the demerger, the payout ratio used to be quite healthy. Going forward, also, can we expect the dividend payout ratio to be closer to the yearly earnings number?

Speaker #3: The payout ratio used to be quite healthy. So going forward also can we expect the payout ratio to be to dividend payout ratio to be closer to the yearly earnings number?

Rachid Ayari: Look, we cannot communicate on forward-looking, this is part of it. If you look to the financial statement today and the cash generated by the company, that's what I mentioned in my verbal, in my presentation, +34%. We are expecting that will be minimum at last year payout, there are decision and discussion that will be done in the board, the final decision and the proposal will be from the board. Today, we cannot commit. Okay. What we are expecting that it would not be lower than what we were doing in the past.

Speaker #4: Look, so we we we cannot you know, communicate on forward looking and this is part of it. But we you know, if you look to the financial statement today, and the the cash generated by by the company and that's what I mentioned in my verbally in my presentation, plus 34%.

Speaker #4: So we are expecting, you know, we are expecting that we'll be at a minimum at last year’s payout. But then, you know, there are decisions and discussions that will be done in the board, and the final decision and the proposal will be from the board.

Speaker #4: So, today, we cannot commit. But what we are expecting is that it will not be lower than what we were doing in the past.

Lana Rosnik Oza: Thank you, sir. Thank you so much.

Speaker #3: Thank you, sir. Thank you so, so much. Thank you.

Speaker #4: Thank you. Thank you.

Rachid Ayari: Thank you.

Deepak Arora: Thank you.

Speaker #1: Thank you. Participants, you may press star and one to ask a question. The next question is from Lana of the ViXA Agnihotri, from Nippon India. Please go ahead.

Rachid Ayari: Thank you.

Operator: Participant Gima Plus star one, two, ask a question. Next question is from line of Divyaksha Agnihotri from Nippon India. Please go ahead.

Operator: Participant Gima Plus star one, two, ask a question. Next question is from line of Divyaxa Agnihotri from Nippon India. Please go ahead.

Divyaxa Agnihotri [Research Associate: Hello. Am I audible?

Speaker #4: I wasn't audible.

Speaker #1: Yes.

Operator: Yes.

Speaker #4: Hello. Yeah, so congratulations on the insulin portfolio growth. Actually, I just had one question around that. What I wanted to understand is, probably, the threat of new entrants.

Divyaxa Agnihotri [Research Associate: Hello. Yeah. Congratulations on the insulin portfolio growth. Actually, I just had one question around that. What I wanted to understand is probably threat of new entrants. You have Novo Nordisk with a weekly which has come out, which is a higher insulin unit dosage format for long-acting insulin injections. Have you assessed this as sort of comparative intensity increasing for Lantus, Toujeo, and Soliqua? How sustainable is your insulin portfolio growth number going ahead? I am not asking for particular guidance as such, but just want to get a sense of if this growth figure is sustainable over the long term.

Speaker #4: So, you have Novo Nordisk with a weekly which has come out, which is a higher insulin unit dosage format for long-acting basal insulin injections.

Speaker #4: So, have you assessed this as a sort of comparative intensity increase for Lantus, TOJO, and SOLIQUA? And how sustainable is your insulin portfolio growth number going ahead?

Speaker #4: I'm not asking for any particular guidance as such, but I just want to get a sense of whether this growth figure is sustainable over the long term.

Speaker #3: Thank you for the question. I was— I was waiting for someone to ask about this. I think, first of all, we welcome innovation.

Deepak Arora: Thank you for the question. I was waiting for someone to ask about this. I think first of all, we welcome innovation, which is basically being a patient-focused and patient-centric organization. Anything which new comes in can help the patient simplicity. Diabetes, it is a very progressive disease. Injections, pricks, hypoglycemia are a touchy subject. If you look at our weekly versus the portfolio we have, which is basically Toujeo and Lantus in the once daily, there are very specific patient profiles which may benefit from once weekly versus continued support, which is there from the once daily insulin. We do not see a major shift which will happen because the market is big. The share of voice will help in terms of capitalizing the market. We are now being joined by Novo.

Speaker #3: Which is basically being a patient-focused and patient-centric organization. Anything new that comes in can help patients with simplicity. And diabetes, you know, it's a very progressive disease.

Speaker #3: Injection pricks and hypoglycemia are a touchy subject. If you look at a weekly versus the portfolio we have, which is basically Toujeo and Lantus in the once-daily, there are very specific patient profiles which may benefit from once-weekly versus continued support, which is there from the once-daily insulin.

Speaker #3: We do not see a major shift happening because the market is big. The share of voice will help in terms of capitalizing on the market.

Speaker #3: We are now being joined by Novo because basically everyone was focusing on GLP-1. Now you see there is attraction coming back on insulins, which is good news for us.

Deepak Arora: Because basically everyone was focusing on GLP-1, now you see there is attraction coming back on insulin, which is a good news for us. We will try to maximize on harp upon that share of voice. Very clearly, there are patient profiles which will get benefit with once weekly, and there are much bigger patient profiles which will continue getting support and will benefit from once daily basal analog, which we have, whether it is for, whether we talk about Toujeo or Lantus. Remember the public sector, which continues to grow, and the expansion into public sector, whether it is through CGHS, ESIC, railways, state, and army, will continue helping us in terms of bringing the innovation into the access market. It is a welcoming news, but I think patient profiles are very, very different for both once weekly versus once daily.

Speaker #3: And we'll try to maximize on having upon that share of voice. But very clearly, there are patient profiles which will get benefit with once weekly.

Speaker #3: And there are much bigger patient profiles which will continue getting support and will benefit from once-daily basal analogs which we have, whether we talk about Tojo or Lantus.

Speaker #3: And remember the public sector, which continues to grow, and the expansion into the public sector—whether it's into CGS, ESI, railways, state, or army—will continue helping us in terms of bringing innovation into the access market.

Speaker #3: So it's a welcoming news, but I think patient profiles are very, very different for both once weekly versus once daily.

Divyaxa Agnihotri [Research Associate: Inherently, do you think the insulin market right now for Lantus and Toujeo, which is once a day, based on insulin injections, is this market directly sticking in the sense that your existing patient base is not going to be as affected while also having scope for adding newer patients and these sort of newer entrants, regardless of them having different patient profiles, it's not going to be impacted as much? That is what I want to understand mainly.

Speaker #4: I inherently do you think like the insulin market right now, sir, Lantus and TOJO, which is once a day basal insulin injections, is this market that really sticky in the sense that you're existing patient base is not going to be as affected while also having scope for adding newer patients and the sort of newer entrants regardless of sort of different than having different patient profiles?

Speaker #4: It's not going to be impacted as much. That is what I want to understand mainly.

Speaker #3: So so if you look at the new initiations and also intensification, you you will see that patients who are very much restrictive and do not wanted to initiate on insulin therapy and there's around one third of those patients which were neither on once daily insulins not on GLP-1s maybe the interaction with those patients once weekly will really help.

Deepak Arora: If you look at the new initiations, and also intensification, you will see that patients who are very much restrictive and didn't want it to initiate on insulin therapy, and there's around one-third of those patients which were neither on once daily insulin, not on GLP-1, maybe the interaction with those patients, once weekly will really help. Being a progressive disease, I think you also see as the disease progress, the intensification really adds on to. That's why we have Soliqua and you will see that patients will be requiring basal bonus treatment. That's where Toujeo along with Apidra or Lantus with Apidra will come into the feature.

Speaker #3: Being a progressive disease, I think you also see, as the disease progresses, the intensification really adds on too. And that's why we have SOLIQUA, and you will see that patients will be requiring basal bolus treatment.

Speaker #3: So there's where TOJO along with APIDRA or Lantus with APIDRA will come into the into the feature. So I think it's too early to comment on, you know, if there's a major impact which will happen.

Deepak Arora: I think it's too early to comment on if there's a major impact which will happen, I think the market will open up, especially on the patients at the time of initiations which were not getting onto the insulin therapy because of the daily injection. That's where I think once weekly discussion will happen and may help these patients to get onto insulin therapy now. As they progress, there are different options which will be available for these patients. I think we have to wait for a quarter to really see the momentum. As I said, I think, it's a welcoming news to expand the insulin segment as we are bringing our innovation with Soliqua, GLP-1, and basal together, and then what we are seeing what Novo is doing with once weekly.

Speaker #3: But I think the market will open up, especially for the patients at the time of initiation who were not getting onto insulin therapy because of the daily injection. That's where I think once-weekly discussion will happen and may help these patients to get onto insulin therapy now.

Speaker #3: And as they progress, then you know there are different options which will be available for these patients. So I think we have to wait for a quarter to really see the momentum, but as I said, I think it's a welcoming news to expand the insulin segment as we are bringing our innovation with SOLIQUA, GLP-1, and basal together, and then what we are seeing, what Novo is doing with once weekly.

Speaker #4: Thank you. Thank you so much for the answers. That would be all from me.

Divyaxa Agnihotri [Research Associate: Thank you. Thank you so much for the answer, sir. That would be all from my end.

Speaker #3: Thank you.

Deepak Arora: Thank you.

Operator: Thank you. Participants, you may press star and one to ask a question. Next question is from the line of Dr. Karthik B from Bajaj Life Insurance. Please go ahead.

Speaker #1: Thank you. Participants, you may press star and one to ask a question. The next question is from the line of Dr. Karthik Bane from Bajaj Life Insurance. Please go ahead.

Karthik B: Thank you very much for the opportunity. My question is partially answered, but still I would like to reiterate and ask a macro level question. How is the insulin market overall growing before generalization of GLP-1 and after that? Is it increasing, decreasing? What is the impact, positive or negative?

Speaker #4: Thank you very much for the opportunity. My question is partially answered, but I would still like to reiterate and ask a macro-level question. So, how was the insulin market overall growing before GLP-1 came into play, or before the generalization of GLP?

Speaker #4: And after that, is it increasing or decreasing? What is the impact—positive or negative?

Speaker #3: Okay, I think I will—mainly, we will talk about our portfolio, not hopping upon how it's being the biosimilar entry of GLP-1s.

Deepak Arora: I think mainly we will talk about our portfolio, not harping upon how is BMB biosimilar entry of GLP-1. If you look at Toujeo, for example, or Lantus growth over last quarter and this quarter, I would owe a lot to GLP-1 also because you will see that there are patients which require both basal and bonus support. We have seen that Toujeo or Lantus, along with GLP-1, have been a great combination of complementary therapy that will see a good growth. Even Soliqua, a 16% growth is attributed to the increased share of voice of GLP-1, where patients who cannot tolerate GLP-1 but require a bit of GLP-1, but at progressive therapy on insulin without any weight gain or neutrality of the weight, Soliqua has been added to those patients in the OAD failure.

Speaker #3: If you look at TOJO, for example, or Lantus, growth over last quarter and this quarter, I would owe a lot to GLP-1s also, because you will see that there are patients which require both basal and bolus support.

Speaker #3: And we have seen that Toujeo or Lantus, along with GLP-1, have been a great combination or complementary therapy that will see good growth.

Speaker #3: And even SOLIQUA, a 16% growth is attributed to the increased share of voice of GLP-1, where patients who cannot tolerate GLP-1 but require a bit of GLP-1, but are at progressive therapy on insulin without any weight gain or with neutrality of the weight, SOLIQUA has been added to those patients in the OAD failure.

Speaker #3: So, I would say I think the insulins will be here to stay and remain the gold standard of care in managing type 1 and type 2 diabetes.

Deepak Arora: I would say, I think insulins will be here to stay and being a gold standard of care in managing type 1 and type 2 diabetes. Anything which comes into this market increases share of voice because of the awareness which is created in the market of managing diabetes, whether it's type 2 or type 1. I think the insulin market growth may be a little bit declining because of the initiation phase, which was taken by the GLP-1. As time progresses, you will see that a higher single-digit growth of insulin will continue. When you talk about analogs, you see a double-digit growth. Irrespective of GLP-1, that double-digit growth has been sustained. We can see it's a true reflection also on our portfolio with the analog segment.

Speaker #3: Anything which comes into this market increases share of voice because of the awareness which is created in the market of managing diabetes, whether it's type 2 or type 1.

Speaker #3: So, I think our growth—maybe the insulin market growth—may be a little bit declining because of the initiation phase which was taken by the GLP-1.

Speaker #3: But as time progresses, you will see that a higher single-digit growth of insulins will continue. But when you talk about analogs, you see a double-digit growth.

Speaker #3: And irrespective of GLP-1s, that double-digit growth has been sustained. And we can see it's a true reflection also on our portfolio with the analog segment.

Karthik B: Okay. Thank you. My second question, if you would like to enlighten us on the export business, what is the strategy at the moment, and how are you thinking about it?

Speaker #4: Thank you. And my second question—if you would like to enlighten us on the export business, what is the strategy at the moment, and how are you thinking about it?

Deepak Arora: Go ahead, Richard.

Speaker #3: Go ahead, Rashid.

Speaker #2: Yeah. For the export, in fact, you know, what we are trying to do is, so the lower that we have in Australia, we try to compensate with other markets.

Rachid Ayari: For the export, in fact, what we are trying to do is, the losses that we have in Australia, we try to compensate with other markets. That's what had been done with France, Italy, Turkey, and Russia, by the way. This is what we are trying to do, and to make kind of Goa a specialized site to manufacture worldwide for certain products. We succeed already for one product, and still waiting certain other action. We are expecting as well certain tenders from South Africa that we are waiting for the result. Basically we say that the volume that we are losing in certain mature markets, we try to offset with other opportunity in other markets.

Speaker #2: So, and that's what has been done with France, Italy, Turkey, and others—including Russia, by the way. So this is what we are trying to do.

Speaker #2: And to make, kind of, go as specialized sites to manufacture worldwide for certain products. So we succeeded already for one product. And still, you know, still waiting for certain other action.

Speaker #2: We are expecting, as well, you know, certain standards from South Africa that we are waiting for, you know, for the results.

Speaker #2: So basically, we say that the volume we are losing in certain mature markets, we try to offset with other opportunities in other markets.

Speaker #2: But there is, you know, a kind of team working on on the export and which which is challenged, you know, each in each board meeting by the independent and even by us, by the way.

Rachid Ayari: There is a kind of team working on the export, which is challenged in each board meeting by the independent and even by us, by the way. Strategy is there to offset these losses by other markets. It's working. In addition to that, there are certain products that were outsourced with CMOs. We are trying to get them back as this will increase the volume in the site as well. This is the strategy in general.

Speaker #2: So, strategy is there to offset, you know, resources by other markets. And it's working. In addition to that, you know, there are certain products that were outsourced with CMOs.

Speaker #2: We are trying to get them back as, you know, this is will increase the volume in in the in the in the site as well now.

Speaker #2: So, this is the strategy in general.

Karthik B: Thank you very much. That is all from my side. Thank you.

Speaker #4: Thank you very much. That is all from me, Sir.

Speaker #3: Thank you.

Speaker #2: Thank you.

Rachid Ayari: Thank you.

Speaker #1: Thank you. Participants, you may press star and one to ask a question. Ladies and gentlemen, you may press star and one to ask a question.

Operator: Thank you. Participants, you may press star and one to ask the question. Ladies and gentlemen, you may press star and one to ask the question. Anyone who wishes to ask the question may press star and one. Next question is from the line of Yasir Lakdawala from M3 Investment Management. Please go ahead.

Operator: Thank you. Participants, you may press star and one to ask the question. Ladies and gentlemen, you may press star and one to ask the question. Anyone who wishes to ask the question may press star and one. Next question is from the line of Yasser Lakdawala, from M3 Investment Management. Please go ahead.

Speaker #1: Anyone who wishes to ask a question may press star and one. The next question is from the line of Yasir Lakadawala from M3 Investment Management.

Speaker #1: Please go ahead.

Yasir Lakdawala: Hi. Any thoughts on probably using our cash and-

Yasser Lakdawala: Hi. Any thoughts on probably using our cash and-

Speaker #3: Hi. Any thoughts on probably, you know, using our cash and...

Speaker #1: Yasir, sorry. The audio is not clear. Can you speak through the handset, please?

Operator: Yasir, sorry, your audio is not clear. Can you speak through the handset, please?

Operator: Yasser, sorry, your audio is not clear. Can you speak through the handset, please?

Speaker #3: Yeah. Hello. Am I audible?

Yasir Lakdawala: Yeah. Hello? Am I audible?

Yasser Lakdawala: Yeah. Hello? Am I audible?

Speaker #1: Yes, go ahead.

Operator: Yes, go ahead.

Speaker #3: Yeah. Any thoughts on using our cash to probably go in for an open market buyback? Considering our promoters, I think it's 60-odd percent.

Yasir Lakdawala: Yeah. Any thoughts on using our cash to probably go in for an open market buyback? Considering our promoter is, I think, at 60-odd%, so we have room to go up to 75. Any thoughts on that, using our cash for buying back of stock? Yeah, that's it from my side.

Yasser Lakdawala: Yeah. Any thoughts on using our cash to probably go in for an open market buyback? Considering our promoter is, I think, at 60-odd%, so we have room to go up to 75. Any thoughts on that, using our cash for buying back of stock? Yeah, that's it from my side.

Speaker #3: So, we have room to go up to 75. Any thoughts on that—using our cash for buying back of stock? Yeah, that's it from my side.

Rachid Ayari: Yes. Thank you for the question. As today, all these proposals are discussed in the board. There are certain discussions, but as of today, it's not in the strategy, let's say. Yeah.

Speaker #2: Look, yeah, thank you for the question. As of today, you know, all these proposals are being discussed in the Board, so there are certain discussions.

Speaker #2: But as of today, it's not in the strategy, let's say. Yeah.

Speaker #3: Sure, thanks. Thanks. Thanks for that.

Yasir Lakdawala: Sure. Thanks. Thank you.

Yasser Lakdawala: Sure. Thanks. Thank you.

Rachid Ayari: Thank you.

Speaker #2: Thank you.

Speaker #1: Thank you. Participants, you may press star one to ask a question. Anyone who wishes to ask a question may press star one.

Operator: Thank you. Participants, you may press star and one to ask the question. Anyone who wishes to ask the question may press star and one. A reminder to all the participants, you may press star and one to ask the question. We don't have anyone in the question queue.

Speaker #1: A reminder to all the participants: you may press star and one to ask a question. We don't have anyone in the question queue at the moment.

Speaker #3: Okay.

Speaker #2: Yeah. Thank you. Thank you so much for the quality of the question. I we we hope that we replied to the, you know, to your requirements.

Rachid Ayari: Yeah. Thank you so much for the quality of the question. We hope that we replied to your requirements. Otherwise, if there is something that is not clear enough, then you can come back to us as well. Thank you so much.

Speaker #2: Otherwise, you know, if there is something that is not clear enough, then you can come back to us as well. Thank you so much.

Speaker #3: Thank you so much. Have a good evening.

Deepak Arora: Thank you so much.

Rachid Ayari: Thank you.

Deepak Arora: Have a good evening.

Speaker #1: Thank you very much. On behalf of Sanofi India Limited, that concludes this conference. Thank you very much for the quality of the questions, and thank you for joining us.

Operator: Thank you very much. On behalf of Sanofi India Limited, that concludes this conference. Thank you very much for the quality of the questions. Thank you for joining us. You may now disconnect your lines. Thank you.

Browse all earnings call transcripts

Q2 2026 Sanofi India Ltd Earnings Call

Request TrialDemo

Sanofi India

Earnings