Sanofi India Reports Q3 Profit Dip, Revenue Decline; EBITDA Rises, Appoints New MD

Sanofi India Limited announced a mixed financial performance for the third quarter ending September 30, 2025. The drugmaker reported a 7.5% decrease in net profit, which stood at ₹76 crore, down from ₹82 crore in the corresponding quarter of the previous year. Revenue from operations also saw a decline of 9.3%, falling to ₹475.4 crore from ₹524 crore.

Despite the lower sales figures, Sanofi India demonstrated operational efficiency by increasing its EBITDA by 12% to ₹134 crore. This growth, coupled with a favourable product mix, led to an expansion of its operating margin from 23% to 28%.

Separately, the company's board approved unaudited results for the same quarter, reporting a net profit of ₹760 crore, a decrease from ₹822 crore in the prior year, with revenue falling to ₹4,754 crore from ₹5,240 crore.

In a significant announcement, the board declared an interim dividend of ₹75 per share for the fiscal year 2025, setting November 7 as the record date for eligibility.

Furthermore, Sanofi India announced the appointment of Deepak Arora as its new Managing Director for a three-year term, effective October 27, 2025. Arora, a seasoned professional with over 30 years of global experience in the pharmaceutical sector, succeeds Rachid Ayari, who will continue as Whole-time Director and CFO.

Shares of Sanofi India traded relatively flat following the results announcement. While the stock has gained approximately 22% year-to-date, it has underperformed the Nifty Pharma index, which has seen a decline of about 4.5% during the same period.

Impact: This news presents a mixed outlook for investors. The decline in profit and revenue is a concern, but the improvement in EBITDA and operating margins indicates strong cost management and operational focus. The appointment of a new MD with extensive experience and the declaration of a dividend are positive signals for future growth and shareholder returns. The stock's performance relative to the index suggests potential for price adjustments based on investor interpretation of these results and management changes. Impact rating: 6/10

Difficult Terms: * **EBITDA**: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operational profitability. * **Operating Margin**: This is calculated as operating income divided by revenue, expressed as a percentage. It shows how much profit a company makes for each dollar of sales after accounting for operating expenses. * **Therapeutic Areas**: These are specific branches of medicine or fields of treatment that a company focuses on, such as diabetes, cardiovascular diseases, or oncology. * **Interim Dividend**: A dividend paid to shareholders periodically throughout the year, usually before the end of the company's fiscal year. * **Record Date**: The date specified by a company to determine which shareholders are eligible to receive a declared dividend.