The price of one pack of Goldflake Premium is likely to jump from Rs 115 to near Rs 135 in May, along with similar increases across other value-end brands sold by ITC and Godfrey Phillips, NDTV Profit reported, citing sources. The business news organisation cited channel checks based on distributor conversations.
The Economic Times could not independently verify the report.
Excise duty hike
This comes after the companies sharply increased their cigarette prices following the government’s move to increase duties on cigarettes and other tobacco products. The excise duty imposed on cigarettes took effect from February 1 this year, in addition to a 40% GST.
Under the new framework, excise duties on cigarettes were restructured to a range of Rs 2,050 to Rs 8,500 per 1,000 sticks. This materially raised the overall tax burden on cigarettes, triggering concerns over demand, margins and the risk of increased illicit trade.
How cigarette stocks have been performing recently
At the start of 2026, these stocks saw a sharp selloff after the government announced excise duty hikes. However, both counters rebounded as the companies raised prices to pass on higher costs to consumers.
The latest report of another round of price hikes lifted investor sentiment on Wednesday. ITC shares rose over 4% to Rs 317.5 apiece. The stock is up more than 3% in one week and over 7% in one month. However, it remains down over 13% in 2025 so far and nearly 26% over the past year.Also read: CEAT shares rally 12% after Q4 net profit soars 145% to Rs 244 crore. Should you buy?
Godfrey Phillips India shares rallied more than 7% to Rs 2,273.9 apiece. The stock has gained around 4% in one week and over 18% in one month. Despite the recent rebound, it is still down 18% over the past year and about 2% in 2026 so far.
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