ITC and Godfrey Phillips Share Price in Focus After Cigarette Price Hikes in Pocket Packs

As per NDTV Profit news report, ITC Ltd. and Godfrey Phillips India Ltd. have increased the prices of select cigarette brands in the pocket pack category.  

This move comes in response to the government's excise duty hike announced in February, affecting the cigarette industry significantly. 

Price Increases in Pocket Packs 

Godfrey Phillips has raised the price of Pocket Marlboro to ₹85 from ₹70, while ITC has increased the price of Gold Flake Superstar to ₹79 from ₹70.  

These products contribute to approximately 8-12% of the companies' overall sales. The price adjustments are part of the companies' strategies to manage the increased excise duty imposed by the government. 

Impact of Excise Duty Hike 

The government's decision to increase excise duty on cigarettes by 30-40%, effective February 1, 2026, has led to price hikes across various categories.  

Premium cigarettes have seen the most significant price increases. In the king-size category, per-stick prices have risen to ₹25-28 from around ₹20.  

This has prompted some consumers to opt for lower-priced products, although the overall smoker base remains largely unchanged. 

Read More: ITC Hotels Share Price in Focus; Board Approves 100% Acquisition of Zuri Hotels and Resorts! 

Sales Volume and Revenue Impact 

Dealer checks in Maharashtra suggest a decline in cigarette sales volumes by around 20% in April, with the premium king-size category experiencing the sharpest drop.  

King-size cigarettes, including ITC's Classic and Gold Flake Kings and Godfrey Phillips' Marlboro, account for a significant portion of the decline in volumes.  

This segment contributes more than 30% of revenue for both companies, making any slowdown noteworthy for earnings. 

ITC Share Price Performance  

As of May 19, 2026, at 9:16 AM, ITC share price on NSE was trading at ₹311.95 up by 0.58% from the previous closing price. 

Godfrey Phillips India Share Price Performance  

As of May 19, 2026, at 9:16 AM, Godfrey Phillips India share price on NSE was trading at ₹2,329.00 up by 0.61% from the previous closing price.  

Conclusion 

The recent price hikes by ITC and Godfrey Phillips in the pocket pack category are a direct response to the increased excise duty. While the adjustments aim to mitigate the impact on margins, the decline in sales volumes, particularly in the premium segment, poses challenges for the companies' revenue streams. 

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