ITC has implemented another price hike for its premium cigarette brand Gold Flake Premium, raising the price of a 10-cigarette pack from ₹125 to ₹135, representing an 8% increase. According to dealer checks reported by NDTV Profit, this marks the second price increase for the brand this year, following an 8.7% hike in June that raised the price from ₹115 to ₹125. The cumulative impact of both increases has made Gold Flake Premium 17.4% more expensive this year, moving from ₹115 to ₹135 for a 10-cigarette pack. The price action comes as cigarettes remain an important contributor to ITC's earnings and cash generation, with the segment frequently facing tax and regulatory pressures.
Cigarette stocks traded higher on Wednesday, with ITC gaining 1.50% and Godfrey Phillips India Ltd. rising 2.29%. ITC shares were trading at ₹266.75 around 10:15 am on Wednesday, September 23, up 0.36% from the previous close of ₹265.80. The stock opened at ₹265.85 and touched an intraday high of ₹267.80. The latest cigarette price revision has put the company's pricing strategy back in focus at a time when the stock has been under pressure over the past few months. For investors, the important question is whether pricing growth continues without a material impact on cigarette volumes. The stock is currently trading within its 52-week range of ₹255.50 to ₹426.40.
The latest price increases come as cigarette manufacturers continue to pass on the impact of higher taxes introduced earlier this year. From February 1, 2026, cigarettes moved to a 40% GST rate alongside a new additional excise-duty structure, with the additional duty varying according to cigarette length and whether the cigarette is filtered. ITC has already implemented price increases across several brands this year, with Classic Connect prices rising from ₹390 to ₹428 for a 20-cigarette pack in early September, representing a 9.74% increase. Gold Flake Super Star prices also increased from ₹79 to ₹89 for a 10-cigarette pack, or 12.66%. Consumers had started downtrading amid the price increases, with Maharashtra king-size cigarette volumes declining around 20% in April.
According to technical analysis from SBI Securities, ITC has recovered nearly 5% from its 11 September low of ₹258, but continues to trade below key moving averages on the weekly chart. The Relative Strength Index (RSI) remains below 40, indicating a bearish bias, with the 20-week EMA in the ₹280–285 zone likely to act as immediate resistance. For Godfrey Phillips, the stock has been consolidating within a broad ₹1,832–₹2,635 range since the beginning of the year, with the RSI remaining flat and the declining Average Directional Index (ADX) suggesting a lack of strong directional momentum. A decisive breakout above or below these ranges could provide clearer directional signals for both companies.
