Godfrey Phillips India Reports Strong H1 FY26 Performance, Focuses on Volume Growth and Export Recovery

Godfrey Phillips India Limited (GPIL), a leading FMCG company, has reported robust financial results for the first half of fiscal year 2026, demonstrating strong growth in domestic cigarette sales and a strategic focus on export recovery.

Financial Highlights

GPIL recorded a consolidated Gross Sales Value of Rs. 8,068.00 crores in H1 FY26, marking a 23% increase compared to the same period last year. The company's Net Profit from continuing operations reached Rs. 661.00 crores, up 22% year-over-year.

Key financial metrics for H1 FY26 include:

Metric	Value	YoY Growth
Gross Sales Value	Rs. 8,068.00 Cr	23.3%
Net Profit	Rs. 661.00 Cr	22.1%
Gross Profit	Rs. 1,227.00 Cr	12.9%
Gross Profit Margin	15.2%	-

Operational Performance

The company delivered impressive domestic cigarette sales volume growth of 25% in H1 FY26 compared to the corresponding period last year. However, unmanufactured tobacco exports in H1 FY26 were lower by 15% over H1 FY25, primarily due to shipment postponements by key customers.

Strategic Initiatives

Sharad Aggarwal, Chief Executive Officer of Godfrey Phillips India, highlighted the company's focus on enhancing operational efficiency to drive profitability. He stated, "Our initiatives to expand into new markets with differentiated offerings are progressing well, and we remain committed to delivering long-term value to our stakeholders."

The company is implementing a multi-pronged growth strategy centered on:

Volume-led cigarette growth in the domestic market
Export recovery in the second half of the fiscal year
Launch of premium products
Strengthening the Marlboro partnership
Diversification into FMCG adjacencies

Shareholder Returns

In light of the improved financial performance, the Board of Directors has declared an interim dividend of Rs. 17.00 per share for FY26, on the enhanced capital base after the issuance of bonus equity shares in the ratio of 2:1.

People and Sustainability

Godfrey Phillips India continues to focus on strengthening its leadership pipeline by integrating young talent into key roles. The company has been certified as a 'Great Place To Work' for the seventh consecutive year.

GPIL is also emphasizing sustainability in all facets of its operations. The company's ESG (Environmental, Social, and Governance) rating improved from 43 to 64 in the Dow Jones Sustainability Index, reflecting its commitment to responsible business practices.

Corporate Social Responsibility

The company has strengthened its water conservation efforts, building new check-dams and repairing existing ones. GPIL is also supporting farmers with community sheds for storage and livestock, while driving large-scale awareness on sustainable agricultural practices.

As Godfrey Phillips India continues to navigate the evolving market landscape, its focus on operational efficiency, market expansion, and sustainable practices positions the company for continued growth and success in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.83%	-3.76%	-12.63%	+2.89%	+32.48%	+948.35%

Godfrey Phillips India , a leading player in the Indian tobacco industry, has announced its financial results for the quarter ended September 30, showcasing robust performance and a significant dividend declaration.

Financial Performance

The company reported total income from continuing operations of ₹173,902.00 lakhs for the quarter, contributing to a half-year total of ₹369,009.00 lakhs. Net profit after tax from continuing operations stood at ₹30,174.00 lakhs for the quarter and ₹59,049.00 lakhs for the half-year.

Dividend Announcement

The Board of Directors has declared an interim dividend of 850% (₹17.00 per equity share of ₹2.00 each) for the financial year. The record date for determining shareholder eligibility has been set as November 10.

Segment Performance

The company's primary segment, Cigarettes, Tobacco and related Products, continued to be the main revenue driver. For the quarter ended September 30, this segment generated revenue of ₹160,597.00 lakhs.

Corporate Actions

During the quarter, Godfrey Phillips India allotted 103,987,840 bonus equity shares in the ratio of 2:1, effectively increasing its share capital.

Operational Update

On October 10, a fire incident occurred at a third-party operated tobacco processing plant in Andhra Pradesh. The company has stated that the inventories affected by the fire were adequately covered by insurance policies, and no material loss is expected.

Conclusion

With strong financial results and a generous dividend declaration, Godfrey Phillips India demonstrates confidence in its current business performance. The company will continue to navigate the ongoing challenges in the tobacco industry, including regulatory pressures and changing consumer preferences.