Godfrey Phillips India Ltd. delivered exceptional fourth-quarter results with profit after tax surging 86.2% to ₹520.76 crore from ₹279.61 crore in the previous year. According to reports from CNBC TV18, the company's revenue increased 13.6% to ₹1,787.27 crore from ₹1,573.39 crore in Q4 last year. The company's EBITDA surged 105.4% to ₹552.75 crore from ₹269.06 crore, with EBITDA margins expanding significantly to 30.9% from 17.1% in the year-ago period.
The company demonstrated strong operational efficiency with gross margins expanding to 50.8% from 40.6% last year. As reported by CNBC TV18, Godfrey Phillips' volumes increased 6.1% in the fourth quarter while overall volume growth for financial year 2026 stood at 20%. This robust volume performance contributed to the company's strong financial results and margin expansion across key metrics.
Despite the strong performance, the company faces significant headwinds from recent tax policy changes. According to reports from CNBC TV18, the Centre imposed excise duty on cigarettes in the range of ₹2,050 - ₹8,500 per thousand sticks based on product lengths, which came into effect from February 1. The company stated that the steep increase in taxation in the fourth quarter will make the next year challenging for operations.
Despite the strong financial results, shares of Godfrey Phillips are trading 4.5% lower at ₹2,319.8 on Monday, as reported by CNBC TV18. However, the stock has shown resilience with an 8.5% gain over the last one month. This makes Godfrey Phillips the second tobacco company after VST Industries to report strong performance, highlighting the sector's mixed market reception despite positive operational metrics.
