Godfrey Phillips Q2 profit falls 46% as revenue doubles

Godfrey Phillips India Limited reported standalone profit of Rs 162.98 crore for the quarter ended September 30, 2026, down 46.5% from Rs 304.44 crore a year earlier, while revenue from operations rose to Rs 4,202.44 crore from Rs 1,633.02 crore. Excise duty increased to Rs 2,855.94 crore, and the filing does not identify a tax-rule change.

Why did Godfrey Phillips’ reported revenue more than double?

Godfrey Phillips reported a 157.3% year-on-year increase in revenue from operations to Rs 4,202.44 crore in the September 2026 quarter, compared with Rs 1,633.02 crore in the corresponding quarter of 2025. Revenue from contracts with customers was Rs 4,188.27 crore, against Rs 1,623.50 crore, while other operating revenue was Rs 14.17 crore, up from Rs 9.52 crore.

The statement also records excise duty expense of Rs 2,855.94 crore in Q2, compared with Rs 343.18 crore a year earlier. The Rs 2,512.76 crore increase in excise duty was close to the Rs 2,569.42 crore increase in revenue from operations. The financial results do not specify the reason for the excise-duty change or provide revenue excluding excise duty, limiting like-for-like interpretation of the reported revenue movement.

What caused Godfrey Phillips’ Q2 profit to decline?

Godfrey Phillips’ profit before tax from continuing operations fell 42.8% to Rs 218.27 crore in Q2 from Rs 381.71 crore in the year-earlier quarter. Total expenses increased to Rs 4,027.69 crore from Rs 1,353.89 crore, while total income, including other income, increased to Rs 4,245.96 crore from Rs 1,735.60 crore. Excise duty was the largest expense line at Rs 2,855.94 crore in the September 2026 quarter.

Other income declined to Rs 43.52 crore from Rs 102.58 crore in Q2 last year. The prior-year quarter included Rs 65.23 crore of dividend income from an associate, whereas the September 2026 quarter did not report dividend income from an associate. Other income excluding that associate dividend was Rs 43.52 crore in Q2, compared with Rs 37.35 crore a year earlier.

Godfrey Phillips’ tax expense was Rs 55.29 crore, down from Rs 77.27 crore, but the reduction did not offset the Rs 163.44 crore fall in profit before tax. Current tax was Rs 64.49 crore, while deferred tax was a credit of Rs 9.20 crore. Profit from continuing operations was Rs 162.98 crore, and the company reported no discontinued-operation profit for the quarter.

How did Godfrey Phillips’ cigarette segment perform?

Godfrey Phillips’ Cigarettes, Tobacco and related Products segment generated revenue of Rs 4,162.35 crore in Q2, compared with Rs 1,605.97 crore in the corresponding 2025 quarter. The segment accounted for Rs 4,162.35 crore of the company’s Rs 4,202.44 crore revenue from operations in the latest quarter. The Others segment contributed Rs 40.09 crore, up from Rs 27.05 crore.

Despite the reported revenue increase, the Cigarettes, Tobacco and related Products segment result declined 36.0% to Rs 177.85 crore from Rs 277.96 crore. The Others segment result was Rs 1.49 crore, compared with Rs 2.08 crore. Combined segment results therefore fell to Rs 179.34 crore from Rs 280.04 crore before unallocable items and finance costs.

Unallocable income net of unallocable expenditure declined to Rs 39.16 crore from Rs 101.83 crore, reducing profit before tax. Finance costs classified as unallocable were Rs 23 lakh, compared with Rs 16 lakh. These items reconciled total segment results of Rs 179.34 crore to continuing-operations profit before tax of Rs 218.27 crore.

How did Godfrey Phillips perform in the first half?

Godfrey Phillips reported standalone revenue from operations of Rs 8,017.10 crore for the half year ended September 30, 2026, up from Rs 3,440.03 crore in the comparable 2025 half year. However, profit for the period fell 49.2% to Rs 340.37 crore from Rs 669.42 crore. Half-year profit before tax from continuing operations declined to Rs 447.39 crore from Rs 836.88 crore.

For the six months, excise duty was Rs 5,469.99 crore, compared with Rs 670.24 crore a year earlier. The Cigarettes, Tobacco and related Products segment reported a result of Rs 315.58 crore, down from Rs 574.57 crore, while the Others segment result was Rs 3.41 crore against Rs 4.34 crore. Net unallocable income was Rs 128.82 crore, down from Rs 258.31 crore.

The half-year cash-flow statement reported net cash generated from operating activities of Rs 1,031.06 crore, compared with Rs 524.08 crore in the prior-year period. Inventory increased by Rs 209.72 crore, while trade payables, other financial liabilities, other liabilities and provisions increased by Rs 917.26 crore. Net cash used in investing activities was Rs 423.19 crore and net cash used in financing activities was Rs 536.45 crore.

What dividend has Godfrey Phillips declared?

Godfrey Phillips declared an interim dividend of Rs 10 per equity share of face value Rs 2 for the financial year ending March 31, 2027. The dividend is described as 500%, and the record date to determine eligible shareholders is Thursday, November 12, 2026. The company said it will pay the amount within 30 days of November 5, 2026.

The standalone half-year cash-flow statement recorded dividend paid of Rs 512.53 crore, compared with Rs 310.70 crore in the corresponding previous half year. At September 30, 2026, total equity stood at Rs 5,193.78 crore, including paid-up equity share capital of Rs 31.20 crore and other equity of Rs 5,162.58 crore. These balance-sheet figures precede the newly declared interim dividend payment timeline.

Conclusion

Godfrey Phillips’ Q2 filing shows that reported revenue and profit moved in opposite directions: revenue from operations increased by Rs 2,569.42 crore to Rs 4,202.44 crore, while profit for the period fell by Rs 141.46 crore to Rs 162.98 crore. Excise duty rose by Rs 2,512.76 crore, while the Cigarettes, Tobacco and related Products segment result declined by Rs 100.11 crore.

The next disclosed event for shareholders is the November 12, 2026 record date for the Rs 10-per-share interim dividend, followed by payment within 30 days from November 5, 2026. Future results will show whether the half-year decline in continuing-operations profit before tax, to Rs 447.39 crore from Rs 836.88 crore, continues beyond the September quarter.