Cigarette maker Godfrey Phillips India Ltd on Thursday reported a 37.73 per cent fall in consolidated net profit for the September quarter of FY27. Net profit came in at Rs 189.90 crore, and the company blamed higher taxes for the drop.
In the July-September period a year earlier, the company had posted a net profit of Rs 304.99 crore, according to a regulatory filing.
Revenue from operations, however, more than doubled. It rose twofold to Rs 4,198.17 crore in the September quarter.
Tax burden weighs on earnings
Chief Executive Sharad Aggarwal said the sharp tax increase introduced in the fourth quarter of FY26 had hurt the company’s earnings. Profitability, he said, had fallen 41 per cent compared with the same period last year.
Total expenses also rose twofold, to Rs 4,027.39 crore. Total income, including other income, doubled to Rs 4,241.81 crore.
Aggarwal said the heavier tax load had not only hit profits across the industry but had also helped fuel illicit trade. He described this as a major worry for the legal cigarette business.
Pricing move to protect volumes
To limit the damage to sales volumes, Godfrey Phillips India has adopted a calibrated pricing strategy, the company said.
Over the first half of FY27, total consolidated income was also up twofold, reaching Rs 8,139.64 crore.
About the company
Godfrey Phillips India is the flagship company of Modi Enterprises. It makes well-known cigarette brands such as Four Square, Red and White, Cavanders, Tipper and North Pole.
It also manufactures and distributes Marlboro, which it sells under a licence agreement with Philip Morris.
Shares rise
The company’s shares closed at Rs 1,800 apiece on Thursday, up 1.3 per cent from the previous close.