ITC shares rise 2% as on hike in Gold Flake Premium cigarette rates

ITC Ltd shares rose 2% on Thursday amid reports the company has increased the maximum retail price (MRP) of its Gold Flake Premium cigarettes by Rs 10 per pack. The latest revision takes the price of a 10-cigarette pack to Rs 135 from Rs 125 earlier, marking an increase of around 8% and the second price hike for the brand this year.

According to reports, the revised pricing applies to Gold Flake Premium regular-size filter-tipped (RSFT) cigarettes measuring 60-70 mm. The new MRP packs are expected to begin reaching warehouses by the fourth week of November. ITC has not officially confirmed the latest price revision.

Following the development, ITC shares touched a high of Rs 289.90 on Thursday, gaining 1.90% from their previous close of Rs 284.50. The stock opened at Rs 288.35 and touched a low of Rs 286.75 during the session.

Second price increase for Gold Flake Premium in 2026

The latest increase follows an earlier revision in the price of Gold Flake Premium, when the 10-cigarette pack was raised from Rs 115 to Rs 125. With the latest Rs 10 increase, the pack now costs Rs 135. The cumulative increase from the earlier Rs 115 price is approximately 17.4%.

The price adjustment comes as cigarette manufacturers face pressure from higher taxation and a widening price difference between legally sold cigarettes and cheaper illicit alternatives. ITC had flagged pressure on legal cigarette industry volumes in its September-quarter commentary, noting the risk of consumers shifting towards unregulated products.

The company has said it is following a calibrated pricing strategy to manage the impact of higher taxes while limiting the possibility of a disproportionate shift in volumes towards illicit trade.

Cigarette business faces earnings pressure

The challenges are also reflected in ITC's recent financial performance. Its cigarette business profit declined 27.2% year-on-year (YoY) to Rs 3,813 crore in the September quarter, compared with Rs 5,241 crore in the corresponding period last year. Net revenue from the cigarette business fell 21% during the quarter.

At the overall company level, ITC reported a 20.1% YoY decline in net profit to Rs 4,137.12 crore for the September quarter, while revenue increased 1.8% to Rs 18,401 crore. Its fast-moving consumer goods (FMCG) business provided some support, reporting its strongest revenue growth in 14 quarters.