ITC, Godfrey Phillips Hike Gold Flake, Marlboro & Other Pocket-Pack Cigarette Prices; Shares Rise Up to 1%

Cigarette makers ITC Limited and Godfrey Phillips India Limited have raised prices of select cigarette brands in the pocket-pack category, reflecting the industry's continued response to higher excise duties and a slowdown in premium segment volumes, according to a report by NDTV Profit.

ITC, Godfrey Phillips Raise Pocket-Pack Cigarette Prices by Up to Rs 15

As per brokerage firm B&K Securities, Godfrey Phillips India Limited has increased the price of Pocket Marlboro to Rs 85 from Rs 70, while ITC Limited has raised the price of Gold Flake Superstar to Rs 79 from Rs 70. These products account for an estimated 8% to 12% of total cigarette sales for the two companies, making them important contributors within the mass-premium category.

30%-40% Excise Duty Hike Triggers Fresh Cigarette Price Increases

The latest price hikes come just a few months after the Union government increased excise duty on cigarettes by 30% to 40%, effective February 1, 2026. The tax revision prompted manufacturers to pass on higher costs to consumers across multiple product categories, with premium and king-size cigarette brands witnessing the sharpest increases.

The king-size segment remains particularly significant for both companies. For ITC Limited, this category includes flagship brands such as Gold Flake Kings and Classic, while Godfrey Phillips India Limited markets Marlboro in India. Industry analysts estimate that king-size cigarettes contribute more than 30% of revenue for both companies and generate some of the highest margins in the tobacco business.

Brokerage analysts have cautioned that cigarette margins could contract by as much as 800 basis points during the first quarter of FY27, depending on how sharply volumes decline and whether consumers shift to lower-priced alternatives. This is particularly relevant for ITC Limited, where cigarette operating margins are estimated to be as high as 70%, making even modest volume changes significant for profitability.

Cigarette Stocks Today After Price Hike

The repeated price increases are expected to keep shares of ITC Limited and Godfrey Phillips India Limited in focus as investors assess whether higher prices will offset tax-related cost pressures without materially hurting demand in the premium segment.

ITC Share Price Today on NSE

Shares of ITC Limited were trading higher on Tuesday. The stock rose 0.87%, or Rs 2.70, to Rs 312.85 on the National Stock Exchange (NSE) of India as of 10:46 a.m. The stock opened at Rs 311.95, touched an intraday high of Rs 314.00, and slipped to a low of Rs 310.00 during the session.

Godfrey Phillips Share Price Today on NSE

Shares of Godfrey Phillips India Limited were trading in positive territory on Tuesday. The stock was up 0.87%, or Rs 20.10, at Rs 2,335.00 on the NSE as of 10:48 a.m. The stock opened at Rs 2,329.00 and climbed to an intraday high of Rs 2,370.00, while the day's low stood at Rs 2,314.60.

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