Revenue from operations (excluding excise duty) declined 19.2% to Rs 1,191.85 crore in Q1 FY27 from Rs 1,474.25 crore in Q1 FY26.
Profit before tax (PBT) dropped 43.9% YoY to Rs 251.10 crore during the quarter.
EBITDA fell 46.2% YoY to Rs 182 crore, while the EBITDA margin contracted to 3.2% in Q1 FY27 from 8.3% in the year-ago period.
The company's domestic cigarette volumes stood at 1,866 million sticks per month during Q1 FY27, compared with 1,903 million sticks per month in Q1 FY26.
Sharad Aggarwal chief executive officer, said, 'The company reported a consolidated gross sales value of Rs 5,676 crore and net profit of Rs 198 crore. Due to the steep tax increase implemented in Q4 of FY26, the profitability has declined by 44% compared to the corresponding period last year.
The higher tax burden has not only impacted industry profitability but also contributed to the growth of illicit trade, which remains a significant concern for the legal cigarette industry. In response, we have adopted a balanced pricing strategy to ensure that consumer impact is phased and not in one go, while continuing to invest in brands, innovation, market execution, portfolio enhancement, and operational efficiencies.
Despite significant tax-led price increases, I take pride in saying that our domestic cigarette sales volume declined by only 2% during the quarter over corresponding period of last year, reflecting the resilience of our brands and distribution network.
During Q1 FY27, our unmanufactured tobacco exports sales was at Rs 248 crore, contributing 7% of net sales revenue. The unmanufactured tobacco exports have also been impacted due to various geopolitical factors.'
Godfrey Phillips India is engaged in manufacturing of cigarettes and tobacco products and trading of cigarettes, tobacco products and other retail products.
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