Financial Performance Highlights - H1 FY27 (Consolidated)

Key Financial Figures

  • Gross Sales Value: ₹11,929 Crores (47.9% YoY growth from ₹8,068 Cr in H1 FY26)
  • Net Revenue: ₹2,548 Crores (8.2% YoY decline from ₹2,775 Cr in H1 FY26)
  • Gross Profit: ₹937 Crores (23.6% YoY decline from ₹1,227 Cr)
  • EBITDA (Operating): ₹395 Crores (39.3% YoY decline from ₹651 Cr)
  • Net Profit after tax - Continuing Operations: ₹388 Crores (41.3% YoY decline from ₹661 Cr)
  • Net Profit Margin: 15.2% of Net Revenue (down from 23.8% in H1 FY26)

Quarterly Performance (Q2 FY27)

  • Gross Sales Value: ₹6,254 Crores (57.4% YoY growth from ₹3,974 Cr in Q2 FY26)
  • Net Revenue: ₹1,342 Crores (4.1% YoY growth from ₹1,289 Cr)
  • Net Profit after tax: ₹190 Crores (37.7% YoY decline from ₹305 Cr)

Revenue Analysis

  • Gross Revenue: ₹8,018 Crores for H1 FY27
  • Excise Duty: ₹5,470 Crores for H1 FY27
  • Cost of Goods Sold: ₹1,611 Crores (4.1% YoY increase)
  • Employee Benefits: ₹159 Crores (29.0% YoY decrease)
  • Other expenses (Net): ₹383 Crores (8.8% YoY increase)

Management Perspective

Mr. Sharad Aggarwal, Chief Executive Officer, provided the following commentary:

  • Profitability declined by 41% compared to corresponding period last year due to steep tax increase implemented in Q4 FY26
  • Higher tax burden has impacted industry profitability and contributed to growth of illicit trade
  • Company adopted calibrated pricing strategy to contain impact on volumes
  • Continuing investment in brands, product innovation, market execution and portfolio enhancement
  • Focus on operational efficiencies

Business Segment Performance

Unmanufactured Tobacco Exports

  • Sales value: ₹591 Crores in H1 FY27
  • Contribution: 7% of net sales revenue
  • Impacted by various geopolitical factors
  • Focus on expanding through crop development expertise and customer relationships

Confectionery and Ferrero Partnership

  • Ferrero Food Products: Partnership delivered more than 2X revenue growth from ₹22 crore in FY25 to ₹51 crore in FY26
  • Confectionery Brands: Funda Goli (including Kachha Aam and Funda Paan flavors), Imli Naturalz, Funda C (with Vitamin C), Funda Lemon Chaskaa

International Business Division

  • Net Sales Value: ₹627 Crores for H1 FY27
  • Contribution: 8% of H1 FY27 Net Sales
  • Market presence across Latin America, Middle East, South East Asia and Eastern Europe in around 30 countries

Corporate Overview

  • One of the leading FMCG Companies in India - flagship company of KK Modi Group
  • Diversified business interests – Tobacco & Confectionary
  • Strong Credit Rating: CRISIL A1+ (Short Term Debt) and AA+/Stable (Long Term Loan)
  • State-of-the-art Research & Development Facilities – ISO 17025 certification
  • ISO 50001, ISO 14001, ISO 26000, ISO 22000 and OSHAS 18001 certified manufacturing operations

ESG Performance

Environmental Targets & Achievements (as of FY26)

  • Energy: 32% Renewable in total electricity (Target: 50% by 2030)
  • Emissions: 21% Reduction (Target: 30% Greenhouse Gas reduction in manufacturing by 2030)
  • Waste: ~95% Reduction (Target: Zero waste to landfill by 2030)
  • Water: 29% Reduction (Target: 5% lesser per unit in cigarette manufacturing by 2030)
  • Biodiversity: 100% farmer compliance achieved

Social Initiatives

  • 95% Increase in learning manhours over FY23 baseline, 45% over FY25
  • 8th consecutive Great Place to Work recognition
  • 100% Contracted farmers covered in training

CSR Initiatives (FY 2025-26)

  • Geographic Reach: Expanded from 6 to 20 states
  • Water Security: 60 check-dams, 2.7 lakh KL water conserved annually, 83 RO water plants
  • Livelihood: 20,000+ farmers supported, 440 community sheds
  • Health & Wellbeing: ~10,000 beneficiaries in 2 years across 20 states
  • Environment: 70,000 trees planted, 4 biodiversity parks developed, 25+ acres restored

Future Priorities

  • Leverage distribution infrastructure to drive throughput and profitability (including Ferrero distribution)
  • Sustain calibrated growth across markets with pricing and mix optimization
  • Enhance product portfolio through innovations
  • Strengthen partnership with Philip Morris International for Marlboro brand
  • Build on export markets to enhance sale of unmanufactured tobacco
  • Contribute to socio-economic growth across value chain through farmer programs