Godfrey Phillips lights up Q3 with profit jump and board change

MUMBAI: Godfrey Phillips India (GPI) is proving that where there’s smoke, there’s a surprisingly robust balance sheet. Despite a literal trial by fire at one of its major tobacco plants this quarter, the company has delivered a set of financial results that are anything but a drag. In a board meeting concluded at 4:15 PM today, the directors approved a performance that saw nine-month profits rise from Rs 802.47 crores to a sturdy Rs 1,023.03 crores.

Total income for the quarter ended 31 December 2025 stood at Rs 2,295.94 crores, up from Rs 1,991.76 crores in the same quarter last year. For the nine-month period, revenue from operations increased to Rs 5,627.91 crores from Rs 4,871.96 crores a year earlier.

The cigarette and tobacco segment continued to be the company’s primary revenue contributor, generating Rs 2,159.06 crores during the quarter. Other segments contributed Rs 28.82 crores. The company’s ‘24Seven’ retail business has been classified as a discontinued operation, and the reported figures relate to continuing operations.

Alongside the financial results, the board approved a change in leadership. Marco Mariotti has been appointed as an additional director with effect from 1 February 2026. He represents foreign promoter Philip Morris Global Brands Inc. and brings over 25 years of experience in the tobacco industry, with leadership roles across Europe and South America.

On 10 October 2025, a fire occurred at a tobacco processing plant and warehouse in Andhra Pradesh, resulting in damage to inventory and facilities. The company has filed an insurance claim amounting to Rs 284.36 crores, including claims related to inventory loss and tax credits. Operations at the facility have since resumed, and management expects the losses to be fully recovered through insurance.

The company reported a strong financial performance, with quarterly net profit rising to Rs 353.61 crores compared to Rs 332.33 crores in the corresponding year-ago period. For the nine months ended during the period, net profit stood at Rs 1,023.03 crores. Earnings per share for the quarter came in at Rs 22.67, restated to account for bonus shares. Additionally, an interim dividend of Rs 17 per equity share was declared and paid earlier in the year.

With a “Great Place to Work” certification and a balance sheet that’s clearly in the pink, Godfrey Phillips seems well-equipped to navigate the complexities of India’s new Labour Codes and any other sparks that might fly its way. For now, shareholders can breathe easy, the outlook remains decidedly clear.