Godfrey Phillips India (500163) Q1 26/27 earnings summary

Executive summary

• Consolidated gross sales value reached Rs 5,676 crore in Q1 FY27, with net profit at Rs 198 crore, reflecting a 44% year-over-year decline in profitability due to a steep tax increase in Q4 FY26.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, were approved and reviewed by the Audit Committee and Board of Directors.

• Domestic cigarette sales volume declined by only 2% year-over-year despite significant tax-led price increases, demonstrating brand resilience.

• Unmanufactured tobacco exports contributed Rs 248 crore (7% of net sales), but were impacted by geopolitical factors.

• Continued focus on brand investment, innovation, operational efficiency, and leadership development.

Financial highlights

• Gross sales value grew 38.6% year-over-year to Rs 5,676 crore; gross profit fell 29.3% to Rs 444 crore.

• Standalone total income from continuing operations was Rs.381,466 lakhs, up from Rs.180,701 lakhs in the same quarter last year.

• Net profit after tax from continuing operations dropped 44.3% year-over-year to Rs 198 crore.

• EBITDA declined 46.2% year-over-year to Rs 182 crore.

• Domestic gross sales value was Rs 5,375 crore; international gross sales value was Rs 264 crore.

Outlook and guidance

• Strategic focus on sustaining and growing the cigarette business, expanding international operations, and strengthening core capabilities.

• Plans to leverage distribution infrastructure, optimize pricing and product mix, and enhance product portfolio through innovation.

• The Board recommended a final dividend of Rs.33 per equity share for FY25-26, subject to AGM approval.

• The company expects full recovery of insurance claims related to the fire incident upon completion of the insurer's assessment.

• Continued partnership with Philip Morris International and emphasis on export market growth.