Godfrey Phillips India, the KK Modi Group cigarette and tobacco products maker with confectionery and Ferrero distribution businesses, reports its second quarter under the steep February 2026 cigarette tax reset that cut net revenue 18.8% YoY in Q1 FY27. The print will speak to whether domestic cigarette volumes stabilise after a 2% YoY decline and how far the 'calibrated and balanced pricing strategy' rebuilds an EBITDA margin that fell to 3.2% of gross sales value from 8.6% in FY26.
| Results date | November 05, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 5,676 Cr (Gross Sales Value, Q1 FY27) |
| Previous quarter PAT | Rs. 198 Cr (NPAT, continuing operations, Q1 FY27) |
| Previous quarter EBITDA margin | 3.2% of Gross Sales Value (Q1 FY27) |
| Market cap | Rs. 27,062.84 Cr |
| CMP | Rs. 1,735.0 |
The board of Godfrey Phillips India will meet on 05-Nov-2026 to approve un-audited standalone and consolidated results for the quarter and half year ended 30-Sep-2026 (Q2/H1 FY27) and to consider declaration of interim dividend for FY ending 31-Mar-2027. The trading window remained closed from 01-Oct to 07-Nov-2026.
Q2 FY27 is the second full quarter under the 1-Feb-2026 tax regime of 40% GST plus additional excise duty of Rs 2,100-8,500 per 1,000 sticks, so net revenue (ex-excise) remains structurally deflated versus Q2 FY26 and the company has flagged figures spanning the change as 'not directly comparable'. The offset is pricing: staggered industry hikes continued into September, including ITC's 8% Gold Flake Premium increase on 23-Sep-2026 with Godfrey Phillips moving in sympathy, consistent with management's guided 'calibrated and balanced pricing strategy' with adjustments 'phased rather than immediate'.
Volume resilience is the other swing factor — Q1 FY27 domestic volumes declined only 2% YoY to 1,866 million sticks/month, which management attributes to brand and distribution strength, though Q4 FY26 volumes had slipped to 1,928 million/month from 2,190 in Q3 FY26.
The international leg is a first-order drag: unmanufactured tobacco exports fell to Rs 248 Cr (7% of net sales) in Q1 FY27 from 21% of net sales in FY26 amid ongoing Middle East shipping disruption through the Red Sea and Hormuz routes, and the IBD contributed 7% of net sales versus 22% in FY26.
On leaf costs, the Tobacco Board cut the authorised FCV crop by 43% for Andhra Pradesh (142 to 81 million kg) and 44% for Karnataka (100 to 51 million kg) for 2026-27, pointing to a tightening, policy-managed leaf market, with inventories of Rs 2,264.35 Cr on the 31-Mar-2026 balance sheet buffering near-term COGS. Management has given no numerical FY27 revenue, EBITDA, margin or volume guidance, so Q2 commentary is where any first quantification of the pricing and margin-protection strategy would appear.
Pricing/mix execution vs margin protection: EBITDA margin was 3.2% of GSV in Q1 FY27 versus 8.6% in FY26.
Domestic cigarette volume trajectory
Unmanufactured tobacco exports and IBD recovery
Ferrero and confectionery scale-up
Comparability disclosure and interim dividend
Headline Gross Sales Value rose 38.6% YoY to Rs 5,676 Cr in Q1 FY27, but Net Revenue after excise duty fell 18.8% to Rs 1,206 Cr because excise jumped to Rs 2,614 Cr from Rs 327 Cr a year ago under the February 2026 tax reset. The company flags that figures spanning the 1-Feb-2026 change are not directly comparable with the previous year.
Yes — the International Business Division Net Sales Value target of Rs 2,014 Cr by FY26, with 22% of net sales contribution, was met, as FY26 actual international GSV came in at Rs 2,014 Cr. However, the IBD contributed only 7% of net sales in Q1 FY27 amid geopolitical shipping disruption.
The indirect tax structure on cigarettes was revised effective 1-Feb-2026, moving GST to a flat 40% and replacing the compensation cess with an additional excise duty of Rs 2,100-8,500 per 1,000 sticks depending on cigarette length. The company has explicitly stated that figures spanning this change are 'not directly comparable with the previous year'.
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