Godfrey Phillips India Limited Earnings Summary — Q1 FY2027
Godfrey Phillips Reports Q1 Revenue Growth Driven by High Single-Digit Volume Expansion and Premium Marlboro Franchise
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 32.6% sequentially in Q1 FY2027.
- Revenue of ₹1,206 Cr is 18.9% lower year-on-year.
- Revenue has compounded at 15.3% annualised over the last 10 quarters.
- Net profit of ₹198 Cr is 44.3% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -3.3% annualised across the period.
- Operating margin stands at 15.1% in Q1 FY2027.
- Operating margin compressed by 766 bps year-on-year.
- Over the last two years operating margin has contracted by 975 bps.
- PBT margin is 20.8%.
- Expenses grew -10.8% against revenue growth of -18.9%.
- Operating profit of ₹181 Cr is 46.3% lower year-on-year.
- Operating leverage has been under pressure recently.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 32/100 (Weak) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 1,206 | 1,787 | 1,829 | 1,289 | 1,486 | 1,573 | 1,589 | 1,360 | 1,088 | 875 |
| Expenses | Improving | 1,024 | 1,235 | 1,449 | 975 | 1,149 | 1,304 | 1,228 | 1,083 | 819 | 685 |
| Operating Profit | Improving | 181 | 553 | 380 | 314 | 338 | 269 | 361 | 277 | 270 | 191 |
| Operating Margin | Stable | 15.1% | 30.9% | 20.8% | 24.4% | 22.7% | 17.1% | 22.7% | 20.4% | 24.8% | 21.8% |
| Other Income | Volatile | 107 | 152 | 94 | 101 | 141 | 136 | 80 | 94 | 40 | 114 |
| Interest | Stable | 3 | 3 | 3 | 3 | 3 | 4 | 3 | 3 | 3 | 4 |
| Depreciation | Improving | 34 | 33 | 31 | 29 | 28 | 42 | 28 | 27 | 27 | 28 |
| Profit Before Tax | Improving | 251 | 669 | 440 | 383 | 448 | 359 | 411 | 341 | 280 | 273 |
| Tax | Improving | 53 | 148 | 97 | 78 | 92 | 80 | 95 | 92 | 51 | 58 |
| Net Profit | Improving | 198 | 521 | 343 | 305 | 356 | 279 | 316 | 248 | 229 | 214 |
| Net Margin | Stable | 16.5% | 29.2% | 18.8% | 23.7% | 24.0% | 17.8% | 19.9% | 18.3% | 21.0% | 24.5% |
Key Takeaways
- Revenue from operations surged to ₹381,956 lakhs in Q1 FY2027, though figures are not strictly comparable YoY due to a revision in the indirect tax structure effective February 2026.
- Consolidated Net Profit decreased to ₹19,839 lakhs, significantly impacted by the higher composition of excise duty and lower other income compared to the same period last year.
- The Cigarettes, Tobacco and related Products segment remained the dominant revenue contributor, accounting for ₹377,981 lakhs (98.9% of total revenue).
- Company received an interim insurance payment of ₹10,000 lakhs during the quarter related to a prior fire incident at a third-party tobacco processing plant.
- Other income saw a sharp decline at the standalone level from ₹15,696 lakhs in Q1 last year to ₹9,044 lakhs this quarter, primarily due to lower dividend income from associates.
- The board fixed August 11, 2026, as the record date for a final dividend of ₹33 per share for the previous financial year.
Management Guidance
Management remains focused on core cigarette profitability and cost control. While structural tax changes have altered the presentation of revenue and excise expenses, the long-term strategy continues to leverage the premium Marlboro franchise and domestic volume share.
Sentiment Shift
Stable
While bottom-line numbers show a YoY decline, the performance remains stable when adjusted for tax structure revisions and the timing of associate dividend payouts.
Outlook
The company expects to fully recover the remaining insurance claim amount related to the Andhra Pradesh warehouse fire and maintains a robust, debt-free balance sheet with an focus on capital efficiency following the exit from non-core retail operations.
From the Annual Report (Key Quotes)
“Effective February 1, 2026, revision in the indirect tax structure on cigarettes had significantly impacted the composition of indirect taxes included in revenue... results are not comparable with other periods.”
“The Company has received an interim payment of Rs.10,000 lakhs from the Insurance Company... expects the remaining claim amount to be realized.”
“The Board of Directors has considered and approved the Unaudited Standalone and Consolidated Financial Results for the quarter ended on 30th June 2026.”
Official Quarterly Documents
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This summary is AI-generated from Godfrey Phillips India Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.