Godfrey Phillips India (GPI), a cigarette manufacturer, witnessed a surge in its stock price, climbing over 9% on Monday, August 4, 2025, following the announcement of strong financial results for the first quarter of fiscal year 2026 and a bonus share issue. The company's shares reached a high of ₹9,805.50 apiece during trading.
Q1 2026 Financial Performance
For the quarter ended June 2025, Godfrey Phillips India reported a consolidated net profit of ₹356.28 crore, a significant 56% jump compared to ₹228.55 crore in the same quarter of the previous fiscal year. The surge in profit was attributed to increased sales. The company's consolidated total revenue from operations stood at ₹1,813.26 crore, up from ₹1,358.81 crore in the corresponding period last year.
Other key highlights from the Q1 2026 results include: * A sharp rise of 36.6% year-on-year in revenue for the April-June quarter, reaching ₹1,486 crore, compared to ₹1,088 crore. * Operating performance also improved, with Q1 EBITDA rising 25.3% to ₹338 crore from ₹270 crore a year earlier. * However, the EBITDA margin declined to 22.7% from 24.8% in the corresponding quarter of the previous year.
The company's strong Q1 performance reflects robust operational performance. Net sales were up 79.76% year-on-year, and there was a 36.55% increase in Profit Before Tax (PBT). Profit After Tax (PAT) reached ₹290.58 crore, showing a year-on-year growth of 30.9%.
Bonus Share Issue
In addition to the impressive financial results, the board of directors approved the issuance of bonus equity shares in the proportion of 2:1. This means that shareholders will receive two new fully paid-up bonus equity shares of ₹2 each for every one existing fully paid-up equity share of ₹2 each. The company will capitalize ₹20.8 crore from general reserves for the bonus issue. The issuance of bonus shares is subject to the approval of the shareholders and other regulatory approvals. The board has also approved increasing the authorized share capital from ₹25 crore to ₹50 crore.
The record date for determining shareholders' eligibility for the bonus shares has been fixed as Tuesday, September 16, 2025.
This is the first bonus issue announced by the company. The bonus issue reflects the management's confidence and aims to boost shareholder value and stock liquidity.
Dividend Announcement
Godfrey Phillips will also pay a final dividend of ₹60 per share to its shareholders. The record date for the dividend has been set as August 22, 2025.
Market Reaction and Analysis
The announcement of the Q1 results and bonus issue led to positive market sentiment, with Godfrey Phillips India's stock outperforming its sector. The stock has shown impressive momentum, gaining 12.21% over the last two days and opening with a notable increase of 4.54%. It has consistently traded above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a strong upward trend.
Analysts at MarketsMojo note that Godfrey Phillips India boasts a high return on equity (ROE) of 18.34% and a low debt-to-equity ratio of 0.02, reflecting efficient management and a solid balance sheet.
Company Profile
Godfrey Phillips India Ltd is a part of the KK Modi Group and is one of the leading FMCG Companies in India. The company has a market share of approximately 14% in the domestic cigarette business. It has many iconic cigarette brands like Four Square, Red & White, and Cavanders.
