ITC Ltd and Godfrey Phillips India Ltd may raise cigarette prices by about 17% from May 2026, according to channel checks based on distributor conversations, in what could mark another round of price revisions after the excise duty-led increases earlier this year.
Goldflake Premium prices are expected to rise to about Rs 135 a pack from Rs 115 a pack in May, while similar increases are likely across other value-end brands sold by both companies, according to the source.
The expected move comes after cigarette sales weakened in April following the government's excise duty hike in February, which had already pushed up retail prices across categories and hit volumes.
Dealer checks conducted earlier in Maharashtra suggested overall cigarette volumes likely fell about 20% in April, NDTV Profit reproted earlier this week, adding that the premium king size segment recorded the steepest decline.
The government had raised excise duty on cigarettes by 30-40% with effect from Feb. 1, 2026. Manufacturers then increased prices across segments, with premium products seeing sharper hikes than lower-priced categories.
In the king size segment, per-stick prices moved to Rs 25-28 from about Rs 20, prompting some consumers to shift to lower-priced alternatives, while the overall smoker base remained broadly unchanged, dealers had said.
King size cigarettes, including ITC's Classic and Gold Flake Kings, and Godfrey Phillips' Marlboro, accounted for a disproportionate share of the volume decline, according to the earlier checks.
That segment contributes more than 30% of revenue for both ITC and Godfrey Phillips, making any demand weakness important for earnings.
ITC declined to comment.
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