ITC Limited Plans 20–40% Cigarette Price Hike, 84mm May Rise From ₹17 To ₹24 Per Stick

Mumbai: Tobacco stocks are in focus after reports suggested that ITC may increase cigarette prices by 20 percent to 40 percent across different brands. The move is aimed at managing rising costs and protecting profit margins.

Investors are closely watching how this price hike could affect sales volumes, company profits and overall sentiment in the tobacco sector.

Shipments and Retail Impact

Sources indicate that new cigarette shipments with revised prices may reach the market soon. Meanwhile, retailers are reportedly selling existing stock at higher prices in anticipation of the official hike.

The possible increase has already created positive buzz around cigarette makers, with expectations of better earnings visibility in the coming quarters.

Expected New Prices in 2026

As per market expectations, ITC’s 84mm cigarettes in the KSFT segment could be priced at Rs 24 per stick, up from Rs 17. This segment has seen the sharpest tax increase, which may have led to the steep proposed price jump.

At the lower end, 64mm cigarettes may be priced at Rs 7 per stick compared to Rs 5.9 earlier.

The pricing of the 69mm Goldflake, which is a large volume driver currently priced at Rs 9.5 per stick, is yet to be officially announced. However, market expectations suggest it could rise to around Rs 12 per stick. Competing brand Marlboro is currently priced at Rs 11.5 per stick, which may influence ITC’s pricing decision.

Brokerage View and Target Price

Global brokerage UBS has maintained a “Buy” rating on ITC stock. However, it has reduced the target price to Rs 395 from Rs 420 earlier.

Market participants will now track how consumers respond to the higher prices and whether the hike helps improve margins without hurting demand significantly.

Disclaimer: This article is based on market sources and brokerage views. Price changes are not officially confirmed by ITC. Investors should verify details independently and consult financial advisors before making investment decisions.