Thursday, May 21, 2026

Godfrey Phillips shares decline despite strong Q4 results; Higher taxes seen as a challenge

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Shares of Godfrey Phillips India Ltd. declined on Monday, May 18, even as it reported strong operational set of earnings.This is the second tobacco company after VST Industries to report a strong performance.

For the March quarter, Godfrey Phillips’ profit after tax (PAT) increased by 86.2% to ₹520.76 crore from ₹279.61 crore last year. Its revenue increased 13.6% to ₹1,787.27 crore from ₹1,573.39 crore in the fourth quarter last year.
The company’s gross margins expanded to 50.8% from 40.6% last year.
Earnings before interest tax depreciation and amortization (EBITDA) surged 105.4% to ₹552.75 crore from ₹269.06 crore. Its EBITDA margins expanded to 30.9% from 17.1% in the year-ago period.

Godfrey Phillips’ volumes increased 6.1% in the fourth quarter while overall volume growth for financial year 2026 stood at 20%.

The company said the steep increase in taxation in the fourth quarter will make the next year challenging. Earlier this year, the Centre imposed an excise duty on cigarettes in the range of ₹2,050 – ₹8,500 per thousand sticks based on the lengths of the products, which came into effect from February 1.

Shares of Godfrey Phillips are trading 4.5% lower on Monday at ₹2,319.8. The stock is up 8.5% in the last one month.

Also Read: Bajaj Electricals shares fall 8% after weak consumer products performance drags Q4 results

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