Best Tobacco Stocks in India in April 2025 – Based on 5Yr CAGR

India, the second-largest producer of tobacco globally, plays a significant role in the world’s tobacco supply chain. With over 0.45 million hectares under cultivation and an estimated annual production of 800 million kg, the industry supports over 45 million people through farming, manufacturing, and export activities.

The tobacco industry has long been a significant contributor to India’s economy, despite regulatory challenges and growing health concerns. Tobacco stocks are often considered defensive investments, with strong cash flows, and consistent dividend payouts.

Let’s take a look at the best tobacco company stocks to watch this month.

Best Tobacco Stocks in India in April 2025 Based on 5-Year CAGR

Note: The best Tobacco stocks list, sorted based on the 5-year compound annual growth rate (CAGR), is as of April 4, 2025.

Overview of Top 3 Tobacco Companies in India in April 2025

1. Godfrey Phillips India Ltd

As the flagship company of Modi Enterprises – KK Modi Group, Godfrey Phillips is one of India’s leading players in the tobacco segment. Its portfolio includes popular cigarette brands along with unmanufactured tobacco. Known for its state-of-the-art manufacturing, strong R&D capabilities, and wide distribution network, the company remains a key name in India’s tobacco industry.

In the Q3 FY25 earnings, the company reported a 48.7% year-on-year surge in net profit to ₹316 crore. The revenue jumped 27.3% to ₹1,591 crore. The impressive performance was largely fuelled by higher cigarette sales and strong operational execution.

Key metrics: 

• Return on Capital Employed (ROCE): 24.22%
• Return on equity (ROE): 22.66%

2. ITC Ltd

ITC is India’s leading cigarette manufacturer, known for its diverse brand portfolio including Gold Flake, Classic, and Navy Cut. With world-class manufacturing facilities and a strong focus on innovation, it continues to dominate the domestic market while expanding its global footprint.

In Q3 FY25, ITC reported an 8.4% year-on-year rise in overall revenue, reaching ₹18,953 crore. Its cigarette segment (net of excise duty) contributed ₹8,944.8 crore, marking a 7.8% growth driven by higher volumes.

Key metrics: 

• ROCE: 34.87%
• ROE: 28.33%

3. VST Industries Ltd

Established in 1930 and headquartered in Hyderabad, VST Industries Ltd. is engaged in the manufacturing and sale of cigarettes and unmanufactured tobacco. It operates production units in Hyderabad and Toopran and is listed on both BSE and NSE.

In Q3 FY25, VST Industries posted a 28.07% rise in revenue to ₹475.53 crore. Net profit saw a sharp 153.65% surge to ₹136.26 crore, with profit margins expanding to 28.65%.

Key metrics: 

• ROCE: 30.98%
• ROE: 24.8%

Best Tobacco Stocks in India in April 2025 Based on Net Profit Margin

Note: The best Tobacco stocks list here is as of April 4, 2025. The stocks are sorted based on the Net Profit Margin.

Best Tobacco Stocks in India in April 2025 Based on Debt to Equity Ratio

Note: The best Tobacco stocks list here is as of April 4, 2025. The stocks are sorted based on the debt-to-equity ratio.

Conclusion

India’s tobacco industry continues to play a vital role in the country’s economy, supporting millions of livelihoods and contributing significantly to exports. Companies like ITC, Godfrey Phillips India, and VST Industries are among the key listed players with a strong presence in the sector.

The data shared in this blog highlights how these stocks compare across various financial metrics as of April 2025, including 5-year CAGR, profit margins, and debt levels—providing a snapshot for readers interested in understanding the current landscape of tobacco stocks in India.

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.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.