ITC and Godfrey Phillips Shares Rise After Another Cigarette Price Hike

New Delhi, May 19: Shares of major tobacco companies ITC Limited and Godfrey Phillips India rose in early trade after both firms announced fresh cigarette price increases across key product segments. The hike comes as companies pass on higher excise duties introduced in 2026.

Cigarette Prices Increased Across Key Brands

According to market updates, both companies raised prices in multiple cigarette categories following a recent increase in taxation. Popular products such as Gold Flake Superstar and Pocket Marlboro saw notable price revisions.

The price adjustments reflect rising input costs due to higher excise duties introduced under the revised taxation framework effective from February 2026.

Impact of New Excise Duty Structure

The government’s updated excise regime has significantly increased taxes on tobacco products, making cigarettes more expensive across segments. Duties now vary depending on cigarette length and filter type, adding to the overall tax burden along with GST.

This marks one of the most significant tax revisions in the tobacco sector in recent years, following a long period of stable taxation.

Stock Market Reaction

Following the announcement, shares of ITC and Godfrey Phillips saw gains in early trading, with investors reacting positively to the companies’ ability to pass higher costs to consumers.

Analysts note that cigarette products contribute a significant portion of revenue for both firms, making price hikes a key factor in maintaining margins.

Industry Outlook

The tobacco sector is expected to continue adjusting prices in line with taxation changes. While higher prices may affect consumer demand, companies benefit from stable demand patterns in the cigarette market, which helps support earnings resilience.