Godfrey Phillips India Limited signed a Contract Manufacturing Agreement with Polisetty Somasundaram Tobacco Products (India) Pvt. Ltd. on May 27, 2026, to augment its production capacity and ensure the uninterrupted availability of its products. The agreement covers the manufacturing and delivery of cigarettes and other tobacco products on a contract manufacturing basis at Polisetty's facility. This strategic move is intended to enhance the company's operational capabilities within the domestic market.

The agreement stipulates that Polisetty will manufacture the products exclusively for Godfrey Phillips India, adhering to specifications and standards prescribed by the company. Production materials will be provided by Godfrey Phillips India. In consideration of these services, the company will pay a manufacturing fee to Polisetty, which comprises both fixed and variable components.

Key Terms of the Agreement

The agreement includes specific timelines and operational mandates. Polisetty is required to make its best efforts to establish the manufacturing facility and obtain necessary licenses to commence operations within a period of 12 months. Additionally, Godfrey Phillips India retains the discretion to provide various machines and equipment to Polisetty on a bailment basis for use in the manufacturing process.

The initial term of the contract is set for nine years and is subject to customary terms and conditions, including warranties and indemnities. The disclosure confirms that the transaction does not fall within related party transactions, and no promoter or promoter group entities have an interest in the counterparty.

Financials of the Partner

Based on the latest available audited financials for Polisetty for the year ended March 31, 2025, the entity reported the following figures:

The agreement was signed pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Pumit Kumar Chellaramani, Company Secretary & Compliance Officer, authorized the disclosure.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE260B01028/dcc6e5c7d72b49d8.pdf

Godfrey Phillips India Limited announced its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The Board of Directors, at its meeting held on May 15, 2026, approved the results and recommended a final dividend for the financial year. The results were reviewed by the Audit Committee and approved under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with statutory auditors S.R. Batliboi & Co. LLP issuing audit reports with unmodified opinions on both standalone and consolidated financial results. In compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, an extract of the audited financial results was published in Business Standard (all editions in English) and Navshakti (Mumbai edition in Marathi) on May 16, 2026.

Standalone Financial Performance

For the year ended March 31, 2026, Godfrey Phillips India reported a standalone net profit of Rs. 150,748 lakhs, compared to Rs. 104,320 lakhs in the previous year. Total revenue from operations for the year stood at Rs. 911,902 lakhs, up from Rs. 675,849 lakhs in the prior year. Total expenses for the year were Rs. 766,266 lakhs against Rs. 573,038 lakhs previously. For the quarter ended March 31, 2026, net profit was Rs. 48,445 lakhs and revenue from operations was Rs. 349,111 lakhs.

The following table summarizes the standalone financial performance:

Consolidated Financial Performance

On a consolidated basis, Godfrey Phillips India delivered a strong quarterly performance, with Q4 consolidated net profit rising to 5.2B rupees from 2.8B rupees in the same period last year. Q4 consolidated revenue grew to 34.8B rupees from 18.9B rupees year-on-year. Q4 EBITDA improved to 5.5B rupees from 2.7B rupees, with the EBITDA margin expanding to 15.9% from 14.25% in the corresponding prior-year quarter.

For the full year ended March 31, 2026, consolidated net profit stood at Rs. 152,602 lakhs, up from Rs. 107,231 lakhs in the prior year. Consolidated revenue from operations for the year rose to Rs. 912,094 lakhs from Rs. 676,749 lakhs previously. Total consolidated expenses for the year stood at Rs. 766,899 lakhs. The share of profit of associates, net of tax, for the year was Rs. 28,312 lakhs compared to Rs. 20,897 lakhs in the prior year.

Segment-wise Performance

The Cigarettes, Tobacco and Related Products segment remained the dominant revenue driver. On a standalone basis, this segment contributed Rs. 900,820 lakhs in revenue for the year, with segment results of Rs. 147,478 lakhs. The Others segment contributed Rs. 11,082 lakhs in revenue with segment results of Rs. 692 lakhs.

On a consolidated basis, the Cigarettes, Tobacco and Related Products segment reported revenue of Rs. 900,820 lakhs and segment results of Rs. 148,029 lakhs for the year.

Balance Sheet Highlights

The standalone balance sheet as at March 31, 2026 reflects total assets of Rs. 734,457 lakhs compared to Rs. 601,453 lakhs as at March 31, 2025. Total equity stood at Rs. 536,262 lakhs against Rs. 440,911 lakhs previously. On a consolidated basis, total assets were Rs. 831,038 lakhs as at March 31, 2026, up from Rs. 696,904 lakhs, with total equity at Rs. 621,908 lakhs.

Cash Flow Summary

For the year ended March 31, 2026, standalone net cash generated from operating activities was Rs. 51,167 lakhs compared to Rs. 11,469 lakhs in the prior year. Net cash generated from investing activities was Rs. 4,230 lakhs, while net cash used in financing activities was Rs. (61,859) lakhs. On a consolidated basis, net cash generated from operating activities was Rs. 51,816 lakhs, net cash from investing activities was Rs. 2,749 lakhs, and net cash used in financing activities was Rs. (61,859) lakhs.

Dividend Declaration

The Board has recommended a final dividend of 1650%, or Rs. 33 per equity share of Rs. 2 each, for the financial year ended March 31, 2026, subject to shareholder approval at the ensuing Annual General Meeting. The company had previously declared an interim dividend of Rs. 17 per equity share, bringing the total dividend for the financial year to Rs. 50 per equity share of Rs. 2 each.

Notable Developments

During the quarter ended September 30, 2025, 103,987,840 equity shares were allotted as fully paid-up bonus equity shares in the proportion of 2 bonus shares for every 1 existing share by capitalizing General Reserves, with a record date of September 16, 2025. Earnings per share figures for all previous periods have been restated accordingly.

With effect from February 1, 2026, the Government of India revised the indirect tax structure on cigarettes by reducing compensation cess to nil and simultaneously increasing GST and excise duty. This has resulted in a significant change in the composition of indirect taxes, making revenue from contracts with customers, excise duty, and inventory values for the quarter and year ended March 31, 2026 not directly comparable with prior periods.

In a significant update filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, on May 19, 2026, Godfrey Phillips India confirmed the receipt of an ad-hoc on-account payment of Rs. 100 crores from its insurance company in connection with the fire incident at a third-party tobacco processing plant and warehouse located at District Prakasam, Andhra Pradesh. The fire had originally broken out on October 10, 2025, at the plant where the company processes and stores its tobacco leaf inventory. The company had filed an insurance claim against the loss of inventories and input tax credits aggregating to Rs. 28,436 lakhs, besides an additional claim for loss of profit. Operations have since resumed at the plant, and the company has stated that any further material developments will be updated promptly.

The following table summarizes the key details of the insurance development:

The Board of Directors had decided during the previous year to exit the Retail Business Division operated under the name 24Seven. The Group closed operations of this division during the quarter ended March 31, 2025, and it has been classified as a discontinued operation under Ind AS 105.