ITC, Godfrey Phillips Share Price Surge 8–11% After Price Hikes

Written by: Kusum KumariUpdated on: 18 Feb 2026, 5:59 pm IST

Cigarette stocks ITC, Godfrey Phillips, and VST rise 8–11% after price hikes to offset higher excise duties, easing margin concerns.

Shares of ITC, Godfrey Phillips India, and VST Industries jumped 8–11% on February 18, 2026, extending their recent winning streak. The rise comes after reports that these companies increased cigarette prices to counter the impact of the excise duty hike.

Excise Duty and Price Hike Details

The excise duty increase, effective February 1, 2026, raised taxes by up to 60% in real terms, depending on cigarette length.

Revised duty range: ₹2,050–8,500 per 1,000 sticks.
Price hikes are aimed at limiting EBIT decline to ~2%, down from earlier expectations of 8–15%.

For example:

ITC raised prices for its 84 mm segment (KSFT) from ₹17 to ₹24 per stick.
64 mm cigarettes now cost ₹7 per stick, up from ₹5.9.
69 mm Goldflake is expected to cost around ₹12, close to competitor Marlboro at ₹11.5.

ITC Share Price Movement

As of February 18, 2026, at 11:32 am IST, ITC share price (NSE: ITC) was trading at ₹330.90, up ₹5.45 or 1.67% for the day. The stock opened at ₹326.00 and recorded an intraday low of ₹324.80. ITC has a market capitalisation of ₹4.14 lakh crore and a P/E ratio of 11.84. Over the past 52 weeks, the stock has ranged between ₹302.00 and ₹444.20. It offers a dividend yield of 4.34%, with the latest quarterly dividend at ₹3.59 per share.

Conclusion

Cigarette makers like ITC and Godfrey Phillips have eased margin concerns by hiking prices, giving investors near-term clarity on profitability.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Feb 18, 2026, 12:29 PM IST

Kusum Kumari

Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.

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