Shares of ITC and Godfrey Phillips gained on Wednesday after reports indicated that ITC had raised prices of its Gold Flake Premium cigarette brand.
The price increase comes amid a series of hikes by cigarette manufacturers following changes in the tax structure earlier this year.
According to dealer checks cited by NDTV Profit, the price of a 10-cigarette pack of Gold Flake Premium has been increased to Rs 135 from Rs 125, representing an 8% rise.
Gold Flake Premium sees second price hike in 2026
This marks the second price revision for the brand this year. In June, ITC had increased the price of the same pack from Rs 115 to Rs 125, an 8.7% increase.
With both hikes combined, Gold Flake Premium cigarettes are now 17.4% more expensive compared with the beginning of 2026, with the pack price rising from Rs 115 to Rs 135.
Godfrey Phillips shares jumped up to 2% to Rs 2,010 apiece, while ITC shares gained 1.2% to Rs 269.05. VST Industries also recorded a marginal increase, trading at Rs 207.05.
Tax changes drive cigarette price increases
The latest price revision follows the implementation of higher taxes on cigarettes from February 1, 2026. Cigarettes were brought under a 40% GST slab along with an additional excise duty structure based on cigarette length and whether products are filtered.
ITC has increased prices across multiple cigarette brands this year. Dealer checks earlier in September showed that the price of a 20-cigarette pack of Classic Connect rose from Rs 390 to Rs 428, while Gold Flake Super Star prices increased from Rs 79 to Rs 89 for a 10-cigarette pack.
Earlier in February, ITC had raised Classic Connect prices from Rs 300 to Rs 360 and later to Rs 390. During the same period, Gold Flake Super Star prices increased from Rs 59 to Rs 70.
