1. At a Glance
Sanofi Consumer Healthcare India (SCHIL) popped Q2 FY26 numbers like a vitamin pill: revenue ₹2,209M (+28% YoY) and profit ₹607M (+21% YoY), with an exceptional gain of ₹66M adding a sugar high. Margins cooled to 32% (from the dreamy 45% in early FY24), but ROE is still a monstrous 83.8%. Meanwhile, the stock trades at a P/E of 55.8x—investors clearly think every Crocin they sell is gold-plated.
2. Introduction
Sanofi Consumer, the demerged self-care arm of Sanofi India, is in the business of selling over-the-counter (OTC) remedies—painkillers, allergy meds, and wellness products you pop without calling a doctor. Post demerger in 2023, SCHIL is carving out its niche in India’s ₹30,000 crore OTC market. Q2 FY26 numbers show strong revenue growth, stable profits, and insane returns on equity—but valuation looks like it’s on steroids. Let’s audit this aspirin empire.
3. Business Model (WTF Do They Even Do?)
Sanofi Consumer focuses on self-care healthcare products:
- Pain Management – Crocin, Combiflam
- Allergy Relief – Allegra
- Wellness – Multivitamins & supplements
They sell via pharmacies, e-commerce, and direct-to-consumer channels. With low capital intensity, premium pricing, and global parent backing, this is a classic cash machine. Downside? OTC is crowded and competitive, and growth depends heavily on marketing muscle.
4. Financials Overview
- Q2 FY26 Revenue: ₹2,209M (↑28% YoY)
- PAT: ₹607M (↑21% YoY, boosted by ₹66M exceptional gain)
- EBITDA Margin: ~32% (down from 36–45% historical highs)
- EPS (TTM): ₹86.85
- ROE: 83.8%
- ROCE: 111%
Commentary: Killer margins, sky-high returns, but YoY profit growth slightly lagging revenue. Still a cash-rich OTC play.
5. Valuation
a) P/E Method
EPS TTM ₹86.9, CMP ₹4,794 → P/E 55x
