- ITC increased Gold Flake Premium cigarette prices by Rs 10 per pack in November 2026
- Shares of ITC and Godfrey Phillips India rose up to 4% following the price hike announcement
- ITC's cigarette business profit fell 27.2% year-on-year in the September quarter due to taxes
Cigarette stocks were buzzing in trade on Thursday, with shares of ITC Ltd. and Godfrey Phillips India rising as much as 4% in intraday deals after ITC increased the prices of its Gold Flake Premium cigarettes by Rs 10 per pack.
This marks the second price hike for the brand this year (first one in June), as cigarette makers grapple with higher taxes and mounting pressure on legal industry volumes.
ITC shares rose as much as 1.61% to hit an intraday high of Rs 289.10 apiece, while Godfrey Phillips India gained 3.52% to Rs 1,889. At 9:20 am, ITC was trading at Rs 287.5, up 1.05%, while Godfrey Phillips was up 1.94% at Rs 1,860.15.
ITC Gold Flake Premium Price Hike: What Changes?
According to channel checks, the maximum retail price (MRP) of Gold Flake Premium regular-size filter-tipped (RSFT) cigarettes, measuring 60-70 mm, has been increased to Rs 135 for a pack of 10, from Rs 125 earlier. This represents an increase of around 8%.
READ | Cigarette Prices To Get Costlier: ITC Hikes Gold Flake Premium Prices By Rs 10 Per Pack
The revised MRP stocks are expected to reach warehouses by the fourth week of November, according to market sources.
This is the second price increase for Gold Flake Premium in 2026. The brand had earlier raised prices from Rs 115 to Rs 125 per pack of 10 in June.
With the latest revision, the cumulative increase in cigarette prices stands at around 17.4% from the earlier price level.
Why Is ITC Raising Cigarette Prices?
The price revision comes at a time when ITC's cigarette business is facing major pressure following an unprecedented increase in cigarette taxes.
In its September-quarter commentary, the company said legal industry volumes remained under pressure, pointing to the widening price gap between legal cigarettes and illicit alternatives.
ITC said it was adopting a calibrated approach to limit the risk of consumers shifting towards illicit products while protecting its consumer franchise.
The pressure is already visible in its financial performance. ITC's cigarette business profit declined 27.2% year-on-year to Rs 3,813 crore in the September quarter, compared with Rs 5,241 crore in the year-ago period. Net cigarette revenue fell 21%.
Why Gold Flake Premium Matters To ITC
Gold Flake Premium's regular-size cigarette segment is particularly important for ITC, accounting for an estimated 46-50% of its cigarette revenue, according to market sources.
Cigarettes also remain a major contributor to ITC's profitability, with margins in the business estimated to be as high as 70%.
The latest price increase reflects ITC's attempt to balance higher taxation and profitability with consumer affordability, while limiting the shift towards cheaper, illicitly traded products.
The company has also highlighted plans to strengthen its cigarette portfolio through new variants and trademarks with international appeal to counter competition from smuggled foreign brands.
ITC has flagged a sharp increase in seizures of illicit cigarette consignments, pointing to growing exploitation of the tax arbitrage opportunity in the domestic market.
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