Godfrey Phillips Shares Decline 5% After Recent Rally: What’s Driving the Fall?

Shares of Godfrey Phillips witnessed selling pressure after a strong short term rally, reflecting profit booking by investors following recent price gains. 

The stock had advanced significantly over the previous sessions amid expectations of improved margins linked to cigarette price hikes. 

However, the latest trading session saw a pullback as market participants reassessed valuations after the rapid rise.

Godfrey Phillips Share Price Performance

Godfrey Phillips shares declined nearly 5% during Friday’s session, touching an intraday low of around ₹2,400 on the NSE. The fall followed a sharp rally of approximately 26% over the previous three trading days.

Impact of Cigarette Price Hikes

The recent rally across tobacco stocks was supported by reports indicating price increases by cigarette manufacturers to offset higher excise duties. Companies across the sector, including peers such as ITC and VST Industries, were reported to have adjusted product pricing.

Godfrey Phillips reportedly increased the price of Marlboro Compact cigarettes from ₹9.5 per stick to ₹11.5 per stick. 

Changes in Tax Structure

The pricing actions come after the government introduced a revised tobacco taxation framework from February 1, replacing the earlier GST compensation cess structure. The new regime prompted manufacturers to recalibrate pricing strategies to manage cost pressures.

Financial Performance

For the December quarter of FY26, Godfrey Phillips reported consolidated net profit of ₹343.29 crore, marking an increase of 8.7% compared with ₹315.84 crore in the corresponding period last year.

Revenue from operations rose 15.68% year on year to ₹2,189.93 crore. Total expenses during the quarter increased by about 18%, reaching ₹1,843.96 crore, reflecting higher operational costs.

Read More: Godfrey Phillips Share Price Extends Rally as Cigarette Makers Raise Prices After Tax Hike.

Conclusion

The recent decline in Godfrey Phillips shares appears linked primarily to profit booking after a sharp rally rather than a shift in underlying fundamentals.

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