ITC Hikes Gold Flake Premium Cigarette Pack Price to Rs 135 in Fresh Rate Revision

ITC Ltd has rolled out another price hike across its cigarette portfolio, increasing the maximum retail price (MRP) of its popular Gold Flake Premium variant. According to retail and dealer checks, stock carrying the updated prices has started making its way to retail shelves.

The latest revision takes the price of a 10-cigarette pack of Gold Flake Premium to Rs 135, up 8% from its previous price of Rs 125. This is the second price revision for the variant this calendar year, following an 8.7% increase in June when the MRP was raised from Rs 115 to Rs 125. With both revisions factored in, Gold Flake Premium has become 17.4% costlier year-to-date, rising from Rs 115 to Rs 135.

Latest Portfolio Revisions

The revision in Gold Flake Premium follows price hikes implemented across other key cigarette brands within ITC's portfolio earlier in September:

• Classic Connect: The 20-cigarette pack price was revised upward by 9.74% to Rs 428 from Rs 390. The pack previously traded at Rs 300 at the start of the year before successive revisions brought it to Rs 360, Rs 390, and now Rs 428.
• Gold Flake Super Star: The 10-cigarette pack saw a 12.66% hike, moving to Rs 89 from Rs 79. The variant began the year priced at Rs 59 before climbing to Rs 70, then Rs 79, and currently Rs 89.
• King-Size Category: Longer and filtered categories, including Classic and Gold Flake Kings, have also seen per-stick prices elevate to roughly Rs 25–28 compared to roughly Rs 20 earlier in the year.

Taxation Headwinds Drive Staggered Hikes

The repeated rounds of MRP increases are driven by structural tax changes introduced earlier this year. From February 1, cigarettes and related tobacco products shifted to a 40% Goods and Services Tax (GST) rate alongside a restructured additional excise duty.

Under the revised framework, additional excise duties on cigarettes range between Rs 2,050 and Rs 8,500 per 1,000 sticks, determined by stick length and filter specifications. Because the excise duty is applied over and above the 40% GST, tobacco manufacturers have faced a steep escalation in their overall tax incidence. Rather than passing on the entire burden in a single disruptive increase, ITC has adopted a phased repricing strategy to cushion operating margins.

Impact on Investors and Volume Outlook

ITC's ability to implement sequential price hikes underscores the inelastic demand and strong pricing power inherent in its cigarette business. Historically, passing tax burdens on to consumers has allowed ITC to insulate its cigarette segment margins.

However, market analysts and brokerage firms, including Nomura, have cautioned that sustained price increases across value and premium offerings could create near-term pressure on cigarette sales volumes. Significant price escalation also elevates the risk of consumer down-trading toward informal or illicit cigarette segments. Investors will closely track ITC’s upcoming quarterly volume numbers to evaluate whether consumer demand holds firm amid this persistent repricing cycle.

Tags: ITC Ltd FMCG Cigarette Industry GST Council BSE NSE