Godfrey Phillips India Q1 FY2026-27 Results: Net Profit Falls 44.3% To ₹198.39 Crore As Excise Duty Surges; Shares Drop Over 8%

Godfrey Phillips India reported its June quarter (Q1 FY27) results after market hours on Monday, July 27. The company is the flagship cigarette business of Modi Enterprises.

The company reported a consolidated net profit attributable to owners of ₹198.39 crore for the April-June quarter, down 44.3% from ₹356.31 crore in the corresponding quarter last year. Revenue from operations more than doubled to ₹3,819.56 crore from ₹1,813.26 crore a year ago. Excluding excise duty, however, net revenue declined 18.8% year-on-year to ₹1,206 crore.

The decline in profit was primarily driven by a sharp increase in expenses. Excise duty charges jumped to ₹2,614.05 crore from ₹327.06 crore a year earlier and rose 54% sequentially from ₹1,698.27 crore in Q4 FY26. Total expenses nearly doubled year-on-year to ₹3,675 crore.

The increase in excise duty followed the implementation of the Central Excise (Amendment) Bill, 2025, which came into effect on February 1, 2026, and revised the excise duty structure on manufactured tobacco, unmanufactured tobacco and related products. For cigarette makers such as Godfrey Phillips, excise duty on manufactured tobacco products increased from 25% to 40%, while duty on smoking mixtures for pipes and cigarettes was raised from 60% to 325%.

Godfrey Phillips India Q1 FY2026-27 Results: Revenue Breakdown

Revenue from cigarettes, tobacco and related products rose 112% year-on-year to ₹3,779.81 crore from ₹1,781.36 crore in the year-ago period. Revenue from the company's other businesses increased 24.6% to ₹39.75 crore from ₹31.90 crore.

Godfrey Phillips India Q1 FY27 Results: Management Commentary

Chief Executive Officer Sharad Aggarwal said the steep tax increase implemented in the fourth quarter of FY26 weighed on profitability during the June quarter, resulting in a 44% decline compared with the same period last year. He added that despite significant tax-led price increases, domestic cigarette sales volume declined only 2% year-on-year during the quarter.

Godfrey Phillips India Share Price

Godfrey Phillips India shares fell sharply on Tuesday after the company reported its June quarter results. The stock declined as much as 8.08% to an intraday low of ₹2,032 on the NSE, compared with its previous close of ₹2,210.50. At around 12:30 pm, the stock was trading near the day's low, even as the benchmark Nifty 50 traded in positive territory.

Despite Tuesday's decline, the stock has delivered more than 190% returns over the past five years. However, it remains down around 28.5% over the past year and nearly 9.5% so far in 2026.

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