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Informist, Monday, Jul. 27, 2026

 

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--Godfrey Phillips Apr-Jun net profit INR 1.77 bln
--Godfrey Phillips Apr-Jun revenue INR 38.15 bln
--Godfrey Phillips Apr-Jun net profit INR 1.77 bln vs INR 3.65 bln yr ago
--Godfrey Phillips Apr-Jun revenue INR 38.15 bln vs INR 18.07 bln yr ago
--Godfrey Phillips Q1 tobacco products sales INR 37.80 bln vs INR 17.81 bln

 

By Devanshu Singla

 

MUMBAI – Godfrey Phillips India Ltd.'s net profit for the June quarter fell to less than half compared to the year-ago quarter owing to a substantial increase in excise duty. However, the company's revenue doubled on an annual basis.

 

The company reported a standalone net profit of INR 1.77 billion for the June quarter, down 51% from INR 3.65 billion in the year-ago quarter. Sequentially, the bottom line fell over 63% from INR 4.84 billion in the March quarter. 

 

Godfrey Phillips reported standalone total revenue from operations of INR 38.15 billion for the June quarter, more than double the revenue of INR 18.07 billion reported in the year-ago quarter. On a sequential basis, the company's total revenue from operations jumped 9% from INR 34.91 billion in the March quarter.

 

The company's total income for the reporting quarter was INR 39.1 billion, almost double on a yearly basis, driven by the sharp growth in revenue from operations. However, the company's other income declined over 42% on year to INR 904.4 million.

 

The company reported total expenses of INR 36.76 billion for the quarter, up 143% on year. Excise duty accounted for more than 71% of the total expenses at INR 26.14 billion. On a yearly basis, the excise duty paid by the company increased eight times in the reporting quarter.

 

The cost of materials consumed by Godfrey Phillips in the quarter remained almost flat at INR 4.54 billion. Purchase of stock-in-trade increased 7% on year to INR 3.96 billion. On the other hand, employee benefits expenses declined almost 31% on year to INR 749 million and finance costs fell over 11% to INR 25.5 million. The company reported other expenses of INR 1.89 billion, up 2% on year. 

 

Godfrey Phillips's revenue from cigarettes, tobacco, and related products more than doubled on year to INR 37.80 billion. Revenue from other products such as confectionery and Ferrero food products increased 36% to INR 348.5 million for the June quarter. 

 

During the quarter, the company's unmanufactured tobacco exports sales were at INR 2.48 billion, contributing 7% of net sales revenue. The unmanufactured tobacco exports have also been affected by various geopolitical factors, the company said in a presentation. 

 

On a consolidated basis, the company reported net profit of INR 1.98 billion on revenues of INR 38.20 billion. Its operating earnings before interest, tax, depreciation, and amortisation declined to INR 1.82 billion in the June quarter. The operating EBITDA margin contracted sharply to 3.2% from 8.3% in the year-ago period. 

 

"The higher tax burden has not only impacted industry profitability but also contributed to the growth of illicit trade, which remains a significant concern for the legal cigarette industry," Sharad Aggarwal, chief executive officer, said in a presentation. "In response, we have adopted a balanced pricing strategy to ensure that consumer impact is phased and not in one go, while continuing to invest in brands, innovation, market execution, portfolio enhancement, and operational efficiencies."

 

Monday, shares of Godfrey Phillips ended at INR 2,210.50 apiece on the National Stock Exchange, up 4% from Friday. The company detailed its June quarter earnings after market hours.  End

 

Edited by Rajeev Pai

 

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