ITC raises cigarette prices again amid tax pressure

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 ITC Limited (

) has raised the price of Gold Flake Premium to ₹135 for a 10-cigarette pack from ₹125. The latest 8% increase takes the brand's price up 17.4% from ₹115 at the start of the year. What happened? This is the second price increase for Gold Flake Premium this year. ITC has also raised prices across other cigarette brands, including Classic Connect and Gold Flake Super Star, following higher cigarette taxes introduced in February 2026. Why does it matter? Cigarette makers are facing a higher tax burden after cigarettes moved to 40% GST along with a new additional excise duty structure. Price increases allow ITC to recover part of this higher cost, but repeated hikes can also affect consumer demand and encourage downtrading. My view The important question is whether ITC can pass through the higher tax cost without losing meaningful volumes. The staggered approach suggests the company is balancing margin recovery with the risk of pushing consumers towards cheaper alternatives. This makes volume trends as important as the price increases themselves. What I am watching next I would track cigarette volumes, further price revisions and any signs of downtrading across ITC's portfolio. The next few quarters should show how much of the higher tax burden can be absorbed through pricing. No Recommendations Source: NDTV Profit Disclosure: I, my entity, associates or relatives don't have any holding, position or other material interest in ITC Limited.