Godfrey Phillips India's Q1 net profit fell 44.3% to ₹198.39 crore after a steep tax increase impacted profitability.
Revenue from operations more than doubled to ₹3,819.56 crore, largely due to higher excise duty collections.
The company said domestic cigarette sales volume declined just 2%, highlighting the resilience of its brands despite price hikes.
Godfrey Phillips Q1 Profit Down 44.3% to ₹198.39 Cr
Higher taxes weighed on the cigarette maker's June-quarter earnings even as revenue more than doubled on account of increased excise collections
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Cigarette maker Godfrey Phillips India on Monday reported a 44.3% year-on-year (YoY) decline in consolidated net profit to ₹198.39 crore for the June quarter of this financial year, on account of a rise in taxes.
The company had posted a net profit of ₹356.28 crore during the April-June period a year ago, according to a regulatory filing from Godfrey Phillips India, the flagship company of Modi Enterprises.
"Due to the steep tax increase implemented in Q4 of FY26, the profitability has declined by 44% compared to the corresponding period last year," said its Chief Executive Officer Sharad Aggarwal in the company's earnings statement.
Its revenue from operations increased two-fold to ₹3,819.56 crore during the June quarter of FY27. It was at ₹1,813.26 crore in the corresponding period of the previous fiscal.
This was also due to high excise duty of ₹2,614 crore paid by the company during the quarter.
Minus excise, its net revenue was at ₹1,206 crore, down 18.8%. It was at ₹1,486 crore in the corresponding period a year ago.
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Aggarwal said despite significant tax-led price increases, "our domestic cigarette sales volume declined by only 2%" during the quarter over the corresponding period of last year, reflecting the resilience of the company's brands and distribution network.
Total expenses of Godfrey Phillips in the June quarter were up two-fold at ₹3,675 crore.
Godfrey Phillips' total income, which includes other income, stood at ₹3,897.83 crore, up two-fold in Q1 FY27.
Godfrey Phillips India is the flagship company of Modi Enterprises. It makes popular cigarette brands such as Four Square, Red and White, Cavanders, Tipper and North Pole.
It also manufactures and distributes the Marlboro brand under a licence agreement with Philip Morris.
Shares of Godfrey Phillips India on Monday settled at ₹2,209.25, up 3.86% from the previous close.