Godfrey Phillips India Q1 net profit drops 44 pc to Rs 189 crore; revenue declines 19 pc
Mumbai, July 27
Cigarette and tobacco products manufacturer Godfrey Phillips India Limited on Monday reported a sharp 44.3 per cent year-on-year decline in its consolidated net profit to Rs 189.39 crore for the quarter ended June 30, as revenue and operating profit also fell amid weaker business performance.
The company's consolidated net profit stood at Rs 356.31 crore in the corresponding quarter of the previous financial year (Q1 FY26), according to its stock exchange filing.
Revenue from operations declined 18.9 per cent year-on-year to Rs 1,205.5 crore from Rs 1,486.2 crore.
The company's operating performance also remained under pressure. Earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 46.3 per cent to Rs 181.44 crore from Rs 337.6 crore in the year-ago period.
Consequently, the EBITDA margin narrowed to 15.1 per cent from 22.7 per cent a year earlier.
Separately, the board of directors fixed August 11, 2026, as the record date for determining shareholders eligible to receive the final dividend for the financial year 2025-26.
Ahead of the earnings announcement, shares of Godfrey Phillips India closed 4.03 per cent higher at Rs 2,215.40 on the NSE on Monday, gaining Rs 85.80 during the trading session.
Over the last five days, the company's shares have gained 2.56 per cent. Over the past one month, the stock has remained largely flat, rising 1.01 per cent.
Godfrey Phillips India, the flagship company of Modi Enterprises, is among the country's leading tobacco manufacturers.
Its portfolio includes several well-known cigarette brands such as Marlboro, Four Square, Red & White and Cavanders.
Godfrey Phillips India Ltd. (GPI) is an India-headquartered tobacco manufacturer that was originally founded by a British company.
It is now part of Modi Enterprises and is one of the major players in India's domestic cigarette industry.
— IANS
Reader Comments
Profit drop of 44% is massive! But honestly, good for public health if fewer people are smoking 🚭. Maybe it's time for Godfrey Phillips to diversify more into other FMCG products. Modi Enterprises should look beyond tobacco.
The stock is up 4% despite bad results? Classic market irrationality. Maybe it's already priced in - everyone knew Q1 would be weak. Let's see if they can turn around in Q2 with better volume. Record date for dividend in 2026? That's far away!
As a shareholder, this is disappointing. Revenue down 19% and EBITDA margin shrinking from 22.7% to 15.1% is concerning. Input cost pressures plus lower volumes. But quick recovery seems unlikely given regulatory headwinds. Might book some losses and exit.
These numbers are brutal. But what do you expect when taxes on cigarettes are among the highest in the world? GST + excise duty makes them expensive. People are either quitting or switching to cheaper options. Good for health, bad for business. Karma I guess 😅
Interesting that their famous brands like Marlboro and Four Square are still around. But the Indian market is shifting - younger generation smokes less and vapes more (although illegal). GPI needs to innovate or get left behind. The 46% EBITDA drop tells the real story.
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