ITC Raises Gold Flake Cigarette Prices To ₹135 Per Pack As Higher Taxes Put Pressure On Legal Cigarette Sales; Share Rises Around 1%

Shares of ITC Ltd. gained 1.1% to ₹288 in early trade on Thursday, 12 November, after the company raised the price of its Gold Flake Premium regular-size filter-tipped (RSFT) cigarettes by ₹10 per pack. The revised price stands at ₹135, compared with ₹125 earlier. This is ITC’s second cigarette price hike in 2026, as the company faces higher taxes and pressure on legal cigarette sales.

ITC Shares Rise After Second Price Hike

According to people familiar with the development, ITC has increased the price of its 69 mm Gold Flake RSFT cigarettes by around 8%. The ITC Gold Flake cigarette price was last revised in February 2026, when the pack price went up from ₹95 to ₹125.

Analysts estimate that Gold Flake RSFT accounts for around 30% to 35% of ITC's total cigarette volumes. The latest increase could therefore improve the cigarette business's contribution to the company's profits.

ITC shares have gained around 12% over the past month, although the ITC share price remains down nearly 21% so far in 2026. At 10:19 AM on Thursday, it was trading at ₹287.30, up 0.81%.

Why Has ITC Increased Cigarette Prices?

Cigarette companies have been hit by a sharp increase in taxes, and ITC is now passing on part of that cost to buyers. However, higher prices could push some customers towards cheaper smuggled cigarettes. ITC is trying to avoid that shift while making up for the additional tax burden.

The company has also reported a sharp rise in seizures of smuggled cigarette consignments, highlighting the growing challenge for legal manufacturers.

ITC's cigarette business reported a 27% year-on-year decline in profit before interest and tax (PBIT) during the September quarter. The company said sequential performance had improved, despite continued pressure on volumes.

Meanwhile, ITC's consolidated profit after tax fell 20.1% to ₹4,137.12 crore in the second quarter. Revenue increased 1.8% to ₹18,401 crore, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) declined 17.4% to ₹5,160 crore. The EBITDA margin contracted to 28% from 34.6% a year earlier.

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