Godfrey Phillips doubles operating profit as margin reaches 30.93%
Revenue grew +13.59% YoY while expenses declined -5.35%, but other income remained 22.63% of pre-tax profit and the initial stock reaction was negative.
Filed 15 May 2026, 16:53 IST · after market close · Godfrey Phillips India Ltd (GODFRYPHLP)
Key takeaways
- Consolidated operating profit rose +105.42% YoY as revenue grew +13.59% while expenses fell -5.35%.
- Operating margin expanded 13.83 percentage points YoY to 30.93%, its highest level in the reported five-quarter trend.
- Net profit increased +86.50% YoY, but other income still contributed 22.63% of profit before tax and the stock fell -4.54% on the first reaction.
Price around the results
Operating profit more than doubled on lower expenses
Godfrey Phillips India’s consolidated operating profit rose +105.42% YoY, with revenue up +13.59% and expenses down -5.35%. The result was also stronger sequentially: operating profit increased +45.46% even as revenue declined -2.26%, because expenses fell -14.78%. Lower interest expense, down -17.71% YoY, provided a small additional benefit.
Margin recovery widened the lead over FMCG peers
Operating margin expanded 13.83 percentage points YoY and 10.15 percentage points QoQ, as expenses grew more slowly than revenue in both comparisons. The margin was 30.93%, 14.18 percentage points above the 16.75% median for the 26 Fast Moving Consumer Goods peers that had reported. The five-quarter trend shows a recovery from 17.10% in Q4FY25 through 22.71% and 24.38%, followed by 20.78% and then 30.93%.
Other income remained material to pre-tax profit
Other income accounted for 22.63% of profit before tax, so the profit increase was not entirely operating-led. The tax rate rose 0.74 percentage points YoY and 0.08 percentage points QoQ, meaning a lower tax rate did not flatter net profit. Net profit rose +86.50% YoY, while EPS declined -37.95%.
The negative reaction was close to the stock’s usual range
The stock fell -4.54% on the first reaction, with trading volume at 3.64 times the reference level, and was down -4.30% after five sessions. Across the last eight result reactions, it fell five times and rose three times; the median absolute move was 5.00%, making the initial decline broadly ordinary in size but consistent with its more frequent negative direction.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,787 cr | ₹1,829 cr | -2.26% | +13.59% |
| Other income | ₹151 cr | ₹94 cr | +60.63% | +0.93% |
| Expenses | ₹1,235 cr | ₹1,449 cr | -14.78% | -5.35% |
| Operating profit | ₹553 cr | ₹380 cr | +45.46% | +105.42% |
| Operating margin (%) | 30.93% | 20.78% | — | — |
| Interest | ₹3 cr | ₹3 cr | -0.98% | -17.71% |
| Depreciation | ₹33 cr | ₹31 cr | +5.23% | -21.50% |
| Profit before tax | ₹668 cr | ₹440 cr | +51.86% | +78.83% |
| Tax | ₹148 cr | ₹97 cr | +52.43% | +85.01% |
| Net profit | ₹521 cr | ₹343 cr | +51.90% | +86.50% |
| EPS (₹) | ₹33.43 | ₹22.01 | +51.89% | -37.95% |
Operating margin of 30.93% compares with a Fast Moving Consumer Goods sector median of 16.75% across 26 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.54% | -4.56% |
| Next session | -3.51% | — |
| 5 sessions | -4.30% | -5.94% |
| 15 sessions | -6.67% | — |
| 30 sessions | -10.94% | — |
Volume on the results session was 3.64× its 20-day average.
What to watch
- Whether operating margin holds above 30.93%.
- Whether revenue re-accelerates after the -2.26% QoQ decline.
- Whether other income’s contribution to pre-tax profit falls from 22.63%.