Godfrey Phillips Q3 FY26 profit rises 9% to Rs 343 crore as revenue grows 16%

Godfrey Phillips India Ltd, the flagship company of Modi Enterprises, reported a nearly 9% year-on-year increase in net profit for the third quarter of FY2026, supported by strong growth in its cigarettes and tobacco business, though rising costs weighed on margins.

The maker of cigarette brands such as Marlboro, Red & White and Four Square posted a net profit of Rs 343 crore in Q3 FY26, compared with Rs 315 crore in the year-ago quarter. On a sequential basis, profit rose 12.8% from Rs 304 crore in Q2 FY26.

Revenue from operations climbed 15.6% year-on-year to Rs 2,189 crore during the quarter, up from Rs 1,893 crore in Q3 FY25, reflecting higher volumes and pricing in its core tobacco portfolio.

Revenue from cigarettes, tobacco and related products stood at Rs 2,159 crore in Q3 FY26. For the nine-month period ended December, revenue from this segment aggregated Rs 5,546 crore, underscoring the continued dominance of the cigarettes business in the company’s overall performance.

However, the earnings growth came amid a sharp rise in expenses. Total expenditure increased to Rs 1,843 crore in Q3 FY26, compared with Rs 1,562 crore in the corresponding quarter last year.

Cost pressures were led by higher raw material and employee-related expenses. Cost of materials consumed rose 24.5% year-on-year to Rs 503 crore, while employee benefit expenses surged 35.6% to Rs 118 crore during the quarter.

Despite the rise in costs, Godfrey Phillips benefited from steady demand in the cigarettes category, even as the broader FMCG sector continues to face pressure from input inflation and uneven consumption trends.

The company has not provided forward-looking guidance, but its Q3 performance highlights the resilience of tobacco-led earnings amid a challenging cost environment.