28 Jul , 2026 By : Debdeep Gupta
Cigarette maker Godfrey Phillips India shares declined 7.5?ay after the company reported an on-year decline of 44.3% in consolidated net profit to Rs 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 Rs 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 earnings statement of the company.
Its revenue from operations increased two-fold to Rs 3,819.56 crore during the June quarter of FY27. It was at Rs 1,813.26 crore in the corresponding period of the previous fiscal.
This was also due to high excise duty of Rs 2,614 crore paid by the company during the quarter.
Minus excise, its net revenue was at Rs 1,206 crore, down 18.8%. It was at Rs 1,486 crore in the corresponding period a year ago.
Centre imposed an excise duty on cigarettes ranging from Rs 2,050 to Rs 8,500 per thousand cigarettes, depending on product length, which came into effect on February 1. The tax led to higher cigarette prices.
At 11:35 am on July 28, Godfrey Phillips shares were trading 7.5% lower at Rs 2,041.8 apiece.
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 our brands and distribution network.
Total expenses of Godfrey Phillips in the June quarter were up two-fold at Rs 3,675 crore.
Godfrey Phillips' total income, which includes other income, was at Rs 3,897.83 crore, up two-fold in Q1/FY'27.
Godfrey Phillips India is the flagship company of Modi Enterprises. It makes popular cigarette brands like Four Square, Red and White, Cavanders, Tipper and North Pole.
It also manufactures and distributes the brand Marlboro under a license agreement with Philip Morris.
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