Thank you very much. We will now begin the question-and -answer session. First question is from the line of Rajkumar Vaidyanathan from RK Investments. Please go ahead.

Yes. Good evening. Thanks for the opportunity. First of all, congrats for the good set of numbers on the diabetic segment. S o, the question is on the partnership business. Why there is a prolonged, you know, anemic growth here? And I think, the management is not kind of explaining this piece, you know, while you're answering the good part of the business elaborately, but this par t is not being, you know, articulated well to the investors. So, I would request more color on this.

Yes. So, I will take that, if you want to develop more , Deepak. So, we signed, you know, the partnership for cardiovascular and CNS, in March 2024. And, you know, the first year, so the first year, the agreement with the partners that we start building their inventory -- safety inventory in Q1 in 2025. And this was done once we prepared, you know, all the safety stock was done in Q1. This was impacting, you know, the performance of Q1 2026, because 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 primary sales to the partner. This is one. There are other agreement s, you know, with the partner related to sales returns that in the transition period, that was agreed. And this is, it was one-off, it was positive in Q1 2025. So, this is the major, let's say, impact that were positive in 2025 Q1. 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.

Yes. But, Rachid, see, even Q2, you're showing only 2% growth.

Yes.

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

apple, so that's the question. So, that's a 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'll not be much interest from the institutional segment, right?

No. You are right. You know, if we take Q2, it's apple-to -apple, yes. So, yes. So, 2% we were expecting...

Yes. So, basically, I want to know whether this...

Yes.

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 , you know, a few quarters, then you'll come back to the normal industry led growth, you know?

Yes.

I just want to know what time frame you have, you know, if that can be articulated, that will be helpful.

Yes. The partnership part is -- you know, is really strategic for us and very important for our business. So, there is a strict follow up with the steering committee and the organization is focused on that. So, look, the 2%, yes, agreed that, it's not as per our expectation, but we are working with the partners, to see how they can, you know, reorganize, reinvest. And this is what happened. So, we see that they are reorganize their team to have more focus on the portfolio. So this is as 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. So, maybe 2026, I don't I'm not expecting that we'll reach the industry growth. 2027, this is what we -- where we are evaluating right now. I don't know, Deepak, if you want to...

No. Just to add to Rachid, we have to look at the partnership from the three aspects of CV, CNS, and OADs, anti-diabetic. And if you look at the last changes which we did in the partnership is the with Amaryl in with Emcure, and today when we look at -- 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 a 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 and us are not leaving any grounds to make this partnership do what is really intended to.

Okay. Thank you, Deepak. Sorry to labor on this point. So, is there an issue that Emcure and Cipla are pushing their own products sidelining the Sanofi products? Any regards on that?

No. That could not be a situation.

No, that can, 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 products which they are bringing in have a separate team, but they have a team which is standalone team for Amaryl and also for the CV portfolio. So, that's rest assured that, there's no digression happening because of the new products coming into their pipeline.

And that's a very good point. When we selected the partner, we have taken in consideration this point to avoid having such risks when we start running this partnership. As mentioned by Deepak, so today there is no risk such risk in this partnership. It's we are working like one team, honestly. So, a lot of interaction, and when there is problem, we try to fix it together. So, no risk from this part.

Okay, thank you Rachid. Thank you, Deepak, and all the best Rachid for your next venture.

Oh, thank you so much. Thank you so much.

Next question is from the line of Rusmik Oza from 9 Rays. Please go ahead.

Yes, 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? And 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?

Let me start and then you can jump in. I'll give a 14% sustainability. Look, it's a good point. But we are not only focusing in diabetes. In fact, if you take the partnership with the cardiovascular market is still very important for us, and the CNS with Cipla , the same. So, this is 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 are still there. And today we are talking about 100 million patients, right? So, I mean, in the next upcoming years, it will evolve. So, with our portfolio for the insulin part, I mean, we had a lot of discussions and questions regarding the GLP-1, we don't think that there will be any impact for the insulin part, and we are expecting that opportunity is still there in in the market. And, Deepak, I think you can develop better than me.

I think what we have seen in the last two quarters give us a very clear direction that the equity of Sanofi insulin portfolio is very high in the market, and we need to keep continue leveraging it. So, 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, and making sure that we bring innovation from patient support programs to early diagnosis to treatment and also getting into the public sector to bring innovation into public sector for getting these patients, equitable access to Toujeo or Soliqua. So, that can be what I can assure you that we're not leaving any grounds to make sure that what we have seen in the first half to repeat it in second half.

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?

So, at this moment, when we look at the….. so we need to complement what we have today, right? So, diabetes is 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 will…… we are working on business cases to see how we can complement the and make it very simple for our patients who are taking insulin on daily basis. Rest of the stuff, as the pipeline evolves, we will keep our discussions close to our parent Company.

Okay, and a last question, sir, before the demerger, the payout ratio used to be quite healthy. So, going forward also can we expect the payout ratio to be dividend payout ratio to be closer to the yearly earnings number?

Look so we cannot communicate on forward-looking, and this is part of it. But we -- if you look at the financial statement today and the cash generated by the Company, that's why I mentioned in my verbal in my presentation, +34%. So, we are expecting that we will be minimum at last year payout, but then there are decisions and discussion that will be done at the Board and the final decision and the proposal will be from the Board. So, today, we cannot commit. Okay, but what we are expecting that it will not be lower than what we were doing in the past.

Okay, thank you, sir. Thank you so much.

Thank you. Thank you.

Thank you. Next question is from line of Divyaxa Agnihotri from Nippon India. Please go ahead.

Am I audible?

Yes, go ahead.

Hello. Yes, so congratulations on the insulin portfolio growth, actually. I just had one question around that. So, what I wanted to understand is probably threat of new entrants. So, you have Novo Nordisk with Awiqli , which has come out, which is a higher insulin unit dosage format for long-acting basal insulin injections. So, have you assessed this as sort of competitive intensity increasing for Lantus, Toujeo, and Soliqua, and how sustainable is your insulin portfolio growth number going ahead? I'm not asking for particular guidance as such, but just wanted to get a sense of, is this growth figure sustainable over the long term.

Thank you for the question, and I was waiting for someone to ask about this. I think, first of all, we welcome innovation, which is basically being a patient focus and patient -centric organization. Anything which new comes in can help the patient's simplicity, and diabetes is a very progressive disease, injections, pricks, hypoglycemia are a touchy subjects.

If you look at Awiqli 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 insulins. 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 because basically everybody was focusing on GLP -1. Now, you see there is a traction coming back on insulins, which is good news for us, and we'll try to maximize and hop upon that a share of voice. But 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 analogs which we have whether it's for whether we talk about Toujeo or Lantus. And remember the public sector, which continues to grow, and the expansion into public sector, whether it's to CGHS, ESI, Railway, State, and Army, will continue helping us in terms of bringing the innovation into the access market. So it's a welcoming news, but I think patient profiles are very, very different for both once - weekly versus once-daily.

Inherently, do you think like the insulin market right now for Lantus and Toujeo, which is once a day basal insulin injections, is this market that at least sticky in the sense that existing patient base is not going to be as affected, by and also having scope for adding newer patients and these sort of newer entrants, regardless of sort of different, them having different patient profiles, it's not going to be impacted as much? That is what I want to understand, mainly.

So, if you look at the new initiations and also intensification, you will see that patients who were 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 nor on GLP -1s, may be 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. And that's why we have Soliqua, and you'll see that patients will be requiring basal bolus treatment. So, there's where Toujeo along with Api dra or Lantus with Apidra will come into the feature. So, I think it's too early to comment on if there's a major impact which will happen, but 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. And as they progress, then 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.

Thank you.

Thank you. Next question is from line of Dr. Kartik Bane from Bajaj Life Insurance. Please go ahead.

Thank you very much for the opportunity. M y question is partially answered but still I would like to reiterate and ask a macro level question. So, how is the insulin market overall growing before GLP -1 came into -- before generalization of GLP -1 and after that? Is it increasing, decreasing, what is the impact, positive or negative?

I think mainly we will talk about our portfolio, not harping upon how has been the 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 bolus support. And we have seen that Toujeo or Lantus along with GLP -1 have been a great combination or complementary therapy, that's why we see a good growth. And even Soliqua, a 16% growth is attributed to the increase d share of voice of GLP -1, where patient who cannot tolerate GLP-1 but require a bit of GLP -1 but a progressive therapy on insulin without any weight gain or neutrality of the weight, Soliqua has been added to those patients in the OAD failures. So, I would say I think the insulin will be here to stay and being a gold standard of care in managing type 1 and type 2 diabetes, anything which comes in 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. So, I think our growth may -- the insulin market growth may be a little bit declining in the….. because of the initiation phase, which was taken by the GLP-1, but as time progresses, you will see that a higher single-digit growth of insulin will continue, but when you talk about analogs, you see a double -digit growth and irrespective of GLP -1 that double -digit growth has been sustained and we can see it's a true reflection also on our portfolio with the analog segment.

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?

Go-ahead Rachid?

Yes. For the export, in fact, what we are trying to do is -- so the losses that we have in Australia, we try to compensate with other markets and that's what have been done with France, Italy, Turkey and Russia, by the way. So, this is what we are trying to do and to make kind of Goa as a specialized site to manufacture worldwide for certain products. So, we succeed already for one product and still we’ve still waiting certain other action. We are expecting as well certain tenders from South Africa that we are waiting for the result. So, basically, we say that the volume that we are losing in certain mature markets, we try to offset with other opportunity in other markets but there is a kind of team working on the export and

which is challenged in each Board Meeting by the Independent Directors and even by us, by the way. So, strategy is there to offset these losses by other markets and 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. So, this is the strategy in general.

Thank you very much. That will be all from my side.

Thank you.

Thank you. Next question is from line of Yasser Lakdawala from M3 Investment Management. Please go ahead.

Hi. Any thoughts on probably using...

Sir, sorry, audio is not clear. Can you speak through the handset, please?

Yes. Hello. Am I audible?

Yes, go ahead.

Yes. Any thoughts on using our cash to probably go in for an open market buyback? Considering our promoter, I think at 60-odd percent, so I mean we have room to go up to 75%. Any thoughts on that using our cash for buyback of stock? Yes, that’s it from my side.

Yes, thank you for the question. As today, all these proposals are discussed in the Board, so there are certain discussion, but as today, it's not in the strategy, let's say.

Sure. Thanks a lot.

Thank you.

Thank you. So, we don't have anyone in the question queue.

Yes, thank you so much for the quality of the question and we hope that we have 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.

Thank you so much. Have a good evening.

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. You may now disconnect your lines. Thank you.