Cigarette stocks traded higher on Wednesday, with Godfrey Phillips India Ltd. rising 2.29%, ITC Ltd. gaining 1.50% and VST Industries Ltd. advancing 0.80%. The gains come as cigarette companies continue to raise prices following the increase in cigarette excise duty earlier this year.
ITC has raised prices of its Gold Flake Premium cigarettes by 8% in September, according to dealer checks. The latest increase takes the price of a 10-stick pack to Rs 135 from Rs 125.
The Gold Flake Premium increase is the second price hike for the brand this year. In June, ITC raised the price by 8.7% to Rs 125 from Rs 115 for a 10-stick pack. The two increases take the cumulative price rise for the brand to 17.4% this year.
NDTV Profit had reported in May 2026 that Gold Flake Premium was expected to see a cumulative price increase of 17.4%.
ITC Cigarette Prices Rise Further
ITC has also raised prices of other cigarette brands in September, according to dealer checks.
Classic Connect prices have increased 9.74% to Rs 428 for a pack of 20 from Rs 390. Gold Flake Super Star prices have risen 12.66% to Rs 89 for a pack of 10 from Rs 79.
NDTV Profit reported these price increases on Sept. 15, citing dealer checks.
NDTV Profit has reached out to ITC for a comment and is yet to receive a response.
Excise Duty Impact
Cigarette excise duty was raised 30–40% with effect from Feb. 1, 2026. King-size cigarette prices subsequently increased from Rs 20 to Rs 25–28 per stick.
Consumers had started downtrading amid the price increases. Maharashtra king-size cigarette volumes declined around 20% in April, as reported by NDTV Profit.
King-size cigarettes, or KSFT, account for around 30% of ITC's cigarette revenue. Regular-size cigarettes, or RSFT, account for 46–50%, while deluxe-size cigarettes, or DSFT, account for around 20%.
ITC's cigarette business has margins as high as 70%.
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