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.
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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.
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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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