Godfrey Phillips Q1 FY27: Higher Taxes, Lower Margins, Steady Volumes

Gross Sales Value was Rs 5,676 crore on a consolidated basis for Q1 FY27.

Net profit after tax from continuing operations was Rs 198 crore, down 44.3% YoY, and gross profit margin was 7.8% on gross sales value basis.

Based on net sales excluding GST of Rs 3,806 crore, the presentation shows 92% tobacco domestic, 7% tobacco international, and 1% others.

Management attributed the decline in profitability to a steep tax increase implemented in Q4 FY26, which also contributed to higher illicit trade.

The company aims to build on contract manufactured cigarette export markets and augment unmanufactured tobacco business, with presence across about 30 countries.

Targets include 50% renewable electricity by 2030, 30% GHG reduction in manufacturing by 2030, and zero waste to landfill by 2030, among others.