Godfrey Phillips FY26: Higher volumes, wider reach, and tax headwinds ahead

FY26 consolidated gross sales value was Rs 18,379 crore, gross profit Rs 2,848 crore (15.5% margin) and net profit from continuing operations Rs 1,525 crore, as per the earnings presentation.

The presentation states tobacco contributed 99% of FY26 gross sales value, with domestic tobacco gross sales value of Rs 16,244 crore and international tobacco gross sales value of Rs 2,014 crore.

The presentation shows FY26 annual domestic volumes of 2,001 million per month and states this represents 20% growth versus FY25.

The presentation reports FY26 net sales value of Rs 2,014 crore for the International Business Division and indicates it contributed 22% of FY26 net sales.

The presentation and board meeting outcome state an interim dividend of Rs 17 per share and a final dividend of Rs 33 per share, totaling Rs 50 per share for FY26, with the final dividend subject to shareholder approval.

The financial results notes state that from Feb 1, 2026 the indirect tax structure on cigarettes changed (compensation cess nil, GST and excise increased), making certain revenue, excise and inventory amounts not comparable to previous periods.

Notes to the financial results state a fire occurred on Oct 10, 2025 at a third-party tobacco processing plant and warehouse; an insurance claim of Rs 284.36 crore plus a loss of profit claim was filed and was pending final assessment, while operations had resumed.