Godfrey Phillips Q1 FY27 Net Profit Down 44% YoY

Date: 27th July 2026

Godfrey Phillips India Limited reported its unaudited consolidated financial results for the quarter ended 30th June 2026 (Q1 FY27).

Key Financial Metrics (₹ Crore):

Gross Sales Value: ₹5,676 (up 38.6% YoY from Q1 FY26: ₹4,094; up 1.8% QoQ from Q4 FY26: ₹5,574)
Gross Revenue: ₹3,820 (up 110.7% YoY from Q1 FY26: ₹1,813)
Excise Duty: ₹2,614 (compared to Q1 FY26: ₹327; Q4 FY26: ₹1,698)
Net Revenue: ₹1,206 (down 18.8% YoY from Q1 FY26: ₹1,486; down 32.6% QoQ from Q4 FY26: ₹1,788)
Cost of Goods Sold (COGS): ₹762 (down 11.2% YoY from Q1 FY26: ₹858)
Gross Profit: ₹444 (down 29.3% YoY from Q1 FY26: ₹628; represents 7.8% of Gross Sales Value)
Employee Benefits: ₹80 (down 29.8% YoY from Q1 FY26: ₹114; represents 1.4% of Gross Sales Value)
Other Expenses (Net): ₹182 (up 3.4% YoY from Q1 FY26: ₹176; represents 3.2% of Gross Sales Value)
EBITDA (Operating): ₹182 (down 46.2% YoY from Q1 FY26: ₹338; represents 3.2% of Gross Sales Value)
Net Profit After Tax - Continuing Operations: ₹198 (down 44.3% YoY from Q1 FY26: ₹356; represents 3.5% of Gross Sales Value)
Net Profit After Tax for the period: ₹198 (down 44.3% YoY from Q1 FY26: ₹356)

Full Year FY26 Comparison:

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

The steep tax increase implemented in Q4 FY26 led to a 44% decline in profitability compared to Q1 FY26.
The higher tax burden has impacted industry profitability and contributed to growth in illicit trade.
The company adopted a balanced pricing strategy to phase consumer impact while continuing to invest in brands, innovation, and operational efficiencies.
Domestic cigarette sales volume declined by only 2% during the quarter YoY, reflecting brand resilience.
Unmanufactured tobacco exports sales were at ₹248 Crores, contributing 7% of net sales revenue, though impacted by geopolitical factors.
The company remains focused on strengthening leadership pipeline with young talent and maintaining its 'Great Place to Work' certification for the eighth consecutive year.

International Business Division:

Q1 FY27 Net Sales Value: ₹264 Cr
Contribution to Net Sales: 7%
Focus on building existing contract manufactured cigarettes export markets and augmenting unmanufactured tobacco business
Significant market presence across Latin America, Middle East, South East Asia and Eastern Europe in around 30 countries

Confectionery and Ferrero Distribution:

The company distributes/resells Ferrero food products through a supply agreement, delivering 2X revenue growth from ₹22 crore in FY25 to ₹51 crore in FY26
Confectionery brands include Funda Goli (with flavors like Kachha Aam and Funda Paan), Imli Naturalz, Funda C, and Funda Lemon Chaskaa

Environmental Performance (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 Performance:

CSR Initiatives (FY 2025-26):

Coverage expanded to 20 states (from 6 states previously)
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 across 20 states
Environment: 70,000 trees planted, 4 biodiversity parks developed, 25+ acres restored