Last Updated:
Godfrey Phillips and ITC shares rise after both hike cigarette prices again, passing on higher excise duties that took effect in February 2026 to consumers
Cigarette companies share rose after price hike
Godfrey Phillips, ITC, among the cigarette shares, surged up to 2 per cent on Tuesday after both companies announced a hike in prices of cigarettes on several segments.
According to a report by NDTV Profit citing B&K Securities, Godfrey Phillips increased the price of Pocket Marlboro to Rs 85 from Rs 70, while ITC raised the price of Gold Flake Superstar to Rs 79 from Rs 70. The brokerage also noted that these products account for almost 8-12 per cent of overall sales, suggesting a big impact on a large number of customers.
Godfrey Phillips shares were trading at Rs 2,347 per share with a jump of 1.41 per cent around 10:30 am, while ITC shares traded almost 1 per cent higher at Rs 312 per share.
This is the second time cigarette companies have hiked prices of several segments following the excise duty hike announced in February. Premium segment cigarettes hit the hardest with the steepest price hike.
New Excise Duty Framework
New excise duty framework came into effect from February 01, 2026, which made cigarettes and other tobacco products costlier.
In its first major reset of tobacco taxation since the introduction of GST in 2017, the finance ministry has notified fresh excise duties under the Central Excise Act and the Central Excise (Amendment) Act, 2025. The revised structure reintroduces meaningful excise levies on cigarettes, which had remained largely unchanged for nearly seven years.
Under the new regime, cigarettes attract additional excise duties ranging from Rs 2,050 to Rs 8,500 per 1,000 sticks, depending on their length and whether they are filtered. These duties are levied over and above GST of up to 40%, pushing up the overall tax burden and, in turn, retail prices across categories. Longer and filter cigarettes saw the sharpest price increases as manufacturers pass on the higher tax costs to consumers.
Read More
