ITC Share Price Today: ITC shares rose sharply on Wednesday after the cigarette maker raised prices of select brands once again. The stock gained as much as 2.13% to hit an intraday high of Rs 263.50 on the BSE, outperforming the broader market.
At 9:27 am, ITC shares were trading 1.9% higher at Rs 262.90, while the BSE Sensex was up 0.38%.
ITC Hikes Cigarette Prices Again
ITC has increased the maximum retail prices of select cigarette brands, according to dealer checks, with the revised-price stock already entering the market.
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The Classic Connect 20-cigarette pack is now priced at Rs 428, up from Rs 390 earlier. This represents a 9.74% price increase.
Meanwhile, the Gold Flake Super Star 10-cigarette pack now carries an MRP of Rs 89, compared with Rs 79 previously, marking a 12.66% increase.
The latest price hikes come after multiple rounds of increases by ITC this year as cigarette makers adjust prices following changes in tobacco taxation.
Why ITC Is Raising Prices
From February 1, cigarettes and other tobacco products moved to a 40% GST rate, along with a new additional excise-duty structure.
Cigarette companies subsequently raised prices across brands to offset the higher tax burden. Nomura had earlier said ITC's price increases were intended to cushion the impact of the tax changes, while also flagging the possibility of volume pressure from higher prices.
The latest move is significant as it comes after several rounds of price revisions rather than being the industry's initial response to the new tax regime.
ITC Cigarette Price Hikes This Year
ITC has raised prices of several cigarette brands in stages this year.
In February, industry reports indicated that the price of Classic Connect was increased from Rs 300 to Rs 360 and subsequently to Rs 390. During the same period, Gold Flake Super Star was reported to have increased from Rs 59 to Rs 70.
ITC later raised prices on select lower-priced and pocket-pack offerings.
In May, NDTV Profit reported that the company increased the price of Gold Flake Super Star to Rs 79 from Rs 70, marking another round of pricing actions as cigarette makers sought to absorb the higher tax incidence.
The latest increase takes the price of the same 10-cigarette Gold Flake Super Star pack to Rs 89.
What ITC's Latest Price Hike Means
Repeated price increases could help ITC offset the higher tax burden and protect cigarette margins. However, sustained price increases can also affect consumer demand and cigarette volumes, making volume trends an important factor to watch in the coming quarters.
For ITC investors, the key question now is whether further pricing can support revenue and profitability without leading to a significant decline in cigarette volumes.
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