ITC, Godfrey Phillips Hike Pocket Cigarette Prices Again After Feb Excise Shock
Pocket Marlboro jumps to Rs 85 from Rs 70; Gold Flake Superstar to Rs 79 as manufacturers pass through 30-40% excise duty hike. Premium king-size volumes already down ~20% in April with analysts flagging up to 800 bps margin contraction in Q1FY27 for a segment driving 30%+ of revenue at 70% margins.
What happened
ITC and Godfrey Phillips raised pocket-pack cigarette prices (Gold Flake Superstar to Rs 79, Pocket Marlboro to Rs 85) following Feb 2026 excise hike. Premium
Key facts
- Pocket Marlboro Rs 85 from Rs 70
- Gold Flake Superstar Rs 79 from Rs 70
- 8-12% of sales
- excise duty up 30-40%
- volumes down ~20% in April
- king-size Rs 25-28/stick
- >30% of revenue
- margins up to 70%
- margin contraction up to 800 bps Q1FY27
Why this matters
Watch for accelerated down-trading toward value SKUs and illicit trade share gains, which could reshape M&A logic around regional cigarette brands, smokeless alternatives, and FMCG diversification bets at ITC and Godfrey Phillips.