Shares of Godfrey Phillips India Ltd were in the spotlight on Tuesday, August 5, after the company announced a 2:1 bonus issue alongside earnings for the first quarter of FY26. The stock closed 2.49% higher at ₹8,992.05 on the BSE on Aug 4, rising by ₹218.35.
The board of directors has approved a bonus issue in the ratio of 2:1, meaning shareholders will receive 2 fully paid-up equity shares of ₹2 each for every one share held. The bonus shares will be issued by capitalising ₹2,079.76 lakh from the company's general reserves and/or retained earnings.
The record date to determine eligible shareholders has been set as Tuesday, September 16, 2025. Post issuance, the company’s paid-up share capital will triple, increasing from ₹1,039.88 lakh (5,19,93,920 shares) to ₹3,119.64 lakh (15,59,81,760 shares), subject to shareholder and regulatory approvals.
Additionally, the board has approved an increase in authorised share capital from ₹25 crore to ₹50 crore, requiring changes to Clause 5 of the company’s Memorandum of Association.
Godfrey Phillips also delivered a strong set of numbers for the April–June quarter of FY26. The company reported a net profit of ₹356.3 crore, up 56% from ₹228.5 crore in the same quarter last year.
Revenue surged 36.6% year on year to ₹1,486 crore, compared to ₹1,088 crore in Q1 FY25, driven by robust demand in its core cigarette business and allied segments.
At the operating level, EBITDA rose 25.3% to ₹338 crore from ₹270 crore last year. However, the EBITDA margin declined slightly to 22.7% from 24.8% in the year-ago period, indicating a rise in input or operational costs.
In addition to the bonus issue, the company has fixed Friday, August 22, 2025, as the record date for the final dividend for FY25. The register of members and share transfer books will remain closed from August 23 to September 4, both days inclusive, in connection with the company’s 88th Annual General Meeting.
Read More: Dividends & Bonus Issue This Week (August 4–8, 2025): Paras Defence, Nestle, Coal India, and More.
With a generous bonus issue, strong quarterly performance, and a dividend payout on the horizon, Godfrey Phillips India Ltd is drawing investor attention. The combination of corporate actions and earnings strength positions the company as a stock to watch in the near term.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Aug 5, 2025, 8:53 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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