Godfrey Phillips Share Price Jumps Over 13%, Nears Record High After Recent Correction

Market Performance

Godfrey Phillips share price rebounded sharply in Wednesday’s intraday trade, rising 13.5% to ₹11,130 per share.

• The stock had recently seen selling pressure after touching its record high.
• Earlier this month, it scaled a new lifetime peak of ₹11,444 per share following its strong June-quarter results.
• Despite recent volatility, the stock has delivered gains of 114% in 2025, after rallying 147% in 2024.

Main News

The surge in Godfrey Phillips share price came after a sharp correction triggered by concerns over GST rationalization for cigarette makers.

• Reports indicate the government may move to a two-slab GST structure—5% for essentials and 18% for most goods.
• Sin goods, including cigarettes, would continue to attract a 40% tax slab, with discussions of raising it to 60%.
• Currently, cigarettes face one of the highest tax burdens in India, with GST, compensation cess, and NCCD combined.

Despite these regulatory overhangs, the company’s Q1 performance boosted market confidence, driving the stock back near its record levels.

Company Details

Godfrey Phillips, known for its brands Four Square, Red & White, and Cavanders, reported strong growth in Q1 FY26.

Financial Highlights (Q1 FY26)

• Revenue: ₹1,486 crore, up 36.5% YoY
• EBITDA & Margins: Pressured by higher production costs
• Net Profit: ₹356 crore, up 55.9% YoY
• Cigarette Volumes: 1,903 million sticks/month, compared to 1,497 million sticks/month in Q1 FY25

Other Key Business Updates

• Continued partnership with Philip Morris International for Marlboro brand in India.
• International business contributed 25% of net sales in Q1.
• Domestic market share continued to expand on the back of strong cigarette sales.

Summary

Godfrey Phillips share price regained momentum with a 13.5% intraday jump, nearing its record high of ₹11,444. The strong rebound followed robust Q1 results, with revenue growth of 36.5% YoY and net profit up by 55.9% YoY.

While taxation concerns around GST rationalization remain, the company’s solid operational performance and expanding market share have helped it maintain strong investor interest.