Godfrey Phillips Share Price Surges After Q1 Profit, Bonus

Godfrey Phillips India reported a 56% year‑on‑year jump in Q1 net profit and announced a 1:1 bonus issue. The news has revived investor interest, pushing the share price up ~4% on high volumes.

In the latest trading session, the Godfrey Phillips share price climbed by approximately 4%, driven by strong Q1 earnings and the announcement of a 1:1 bonus issue. These developments are raising confidence in the tobacco-adjacent FMCG major’s recovery momentum.

Company Overview: Godfrey Phillips India Limited

Godfrey Phillips India (GPI), part of the UB Group, is best known for its smoking and chewing tobacco products, including Red & White and Jazbaa. The company also has a growing presence in snacks and consumer goods, including the VF Plus chewing gum.

Founded: 1936
Headquarters: Kolkata
Business Segments: Tobacco manufacturing, non-tobacco snacks, exports
Retail Presence: Over 5.5 million retail touchpoints across India

Q1 Financial Highlights & Bonus Announcement

According to Economic Times:

Net profit soared 56% YoY to ₹180 crore.
Revenue from operations rose ~18% to ₹1,000 crore;
Management declared a 1:1 bonus issue, doubling outstanding equity.

Share Price & Volume Trends

Closing price today touched ₹2,170, up ~4%.
Trading volumes surged to over 150,000 shares, ~2x the 5-day average.
Market cap now stands at ₹12,500 crore.

Why the Positive Reaction?

Exceptional Q1 Profit Growth: 56% YoY rise far exceeded expectations.
Bonus Issue: A 1:1 issue typically indicates confidence and aligns management with shareholders.
Market Sentiment: Rising tobacco margins and expansion into alternate FMCG items are attracting investor interest.
Valuation Perspective: At ~35× TTM EPS, the stock is valued attractively given future earnings growth.

Financial Overview & Ratios

Period	Revenue (₹ Cr)	PAT (₹ Cr)	EBITDA Margin	EPS (TTM)	P/E Ratio
Q1 FY26	1,000	180	19%	—	—
FY25 Annual	3,800	550	18.2%	~62.8	~34.6×
FY24 Annual	3,600	500	17.8%	~57.1	—

Investment Outlook: Should You Buy?

Bullish Case

Strong operating performance and margin recovery
Bonus issue enhances liquidity and sentiment
Diversification beyond tobacco given regulatory headwinds

Risks

Regulatory uncertainties around tobacco
Tax and excise policy risks
Competitive pressure in cigarettes and chewing tobacco

FAQs: Godfrey Phillips Share Price

Q1. What was Godfrey Phillips’ Q1 profit growth?
A 56% year-on-year increase to ₹180 crore.

Q2. Why did the share price rise today?
The rise followed strong Q1 results and the announcement of a 1:1 bonus issue.

Q3. What is the significance of the bonus issue?
It indicates management confidence and doubles shareholder equity, often improving liquidity.

Q4. Is GPI a good long-term investment?
With rising profitability and a diversification roadmap beyond tobacco, it could suit long-term investors despite regulatory risks.

Q5. Where is Godfrey Phillips India listed?
On both NSE and BSE, under the symbol GODFRYPHLP.