Godfrey Phillips’ margin recovers sequentially but remains sharply below last year
Expenses outpaced revenue growth year on year, while other income still supplied 30.24% of consolidated pre-tax profit.
Filed 05 Nov 2026, 17:48 IST · after market close · Godfrey Phillips India Ltd (GODFRYPHLP)
Key takeaways
- Consolidated operating margin fell 8.49 percentage points year on year as expenses grew 15.83% against 4.13% revenue growth.
- Sequentially, revenue grew 11.34% faster than expenses at 10.25%, lifting operating margin by 0.84 percentage points to 15.89%.
- Other income contributed 30.24% of profit before tax, while the 2.00-percentage-point increase in the tax rate added to the 37.74% fall in net profit year on year.
Price around the results
Revenue growth did not offset the cost increase
Godfrey Phillips India’s consolidated revenue grew 4.13% year on year, but expenses rose 15.83%, driving a 32.16% decline in operating profit. The resulting 8.49-percentage-point margin contraction helps explain the 37.74% fall in net profit. Interest and depreciation also increased 28.88% and 32.88%, respectively, adding pressure below the operating line.
Sequential margin recovery came with mixed profit quality
Revenue rose 11.34% sequentially while expenses increased 10.25%, so operating margin improved 0.84 percentage points. That operating improvement did not translate into higher net profit, which fell 4.28%, as other income declined 30.50%, interest rose 37.84%, and the tax rate increased 1.44 percentage points. Other income accounted for 30.24% of consolidated profit before tax, making it a material contributor to reported profit.
Margin is above the reported FMCG peer median
Among 62 Fast Moving Consumer Goods companies that had reported the same quarter, Godfrey Phillips’ 15.89% operating margin was 5.20 percentage points above the sector median. The quarter also marked a modest recovery from 15.05% in Q1FY27, but remained well below the 30.93% recorded in Q4FY26. The recent direction is therefore a sequential stabilisation after the sharp Q4-to-Q1 decline, rather than a return to the earlier peak.
No immediate market reaction after the post-close filing
The consolidated results were filed after market close, so there was no market reaction to report yet. Across the last eight results reactions, the stock rose twice and fell six times, with a median absolute move of 5.83%, indicating that post-results moves have more often been negative and typically sizeable.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,342 cr | ₹1,206 cr | +11.34% | +4.13% |
| Other income | ₹74 cr | ₹107 cr | -30.50% | -26.72% |
| Expenses | ₹1,129 cr | ₹1,024 cr | +10.25% | +15.83% |
| Operating profit | ₹213 cr | ₹181 cr | +17.52% | -32.16% |
| Operating margin (%) | 15.89% | 15.05% | — | — |
| Interest | ₹4 cr | ₹3 cr | +37.84% | +28.88% |
| Depreciation | ₹39 cr | ₹34 cr | +13.39% | +32.88% |
| Profit before tax | ₹245 cr | ₹251 cr | -2.50% | -36.13% |
| Tax | ₹55 cr | ₹53 cr | +4.19% | -29.89% |
| Net profit | ₹190 cr | ₹198 cr | -4.28% | -37.74% |
| EPS (₹) | ₹12.18 | ₹12.72 | -4.25% | -37.73% |
Operating margin of 15.89% compares with a Fast Moving Consumer Goods sector median of 10.69% across 62 peers that have reported Q2FY27.
What to watch
- Whether consolidated operating margin holds above 15.89% after the sequential recovery.
- Whether expenses continue to grow more slowly than revenue, following 10.25% versus 11.34% sequential growth.
- Whether other income remains a material contributor after accounting for 30.24% of profit before tax.