ITC, Godfrey Phillips Hike Pocket-Pack Cigarette Prices After Excise Shock
ITC raised Gold Flake Superstar to Rs 79 from Rs 70, while Godfrey Phillips lifted Pocket Marlboro to Rs 85 from Rs 70, passing through a 30-40% excise duty hike. Volumes fell ~20% in April and Q1FY27 cigarette margins could compress by 800 bps as the segment absorbs the tax burden.
What happened
ITC and Godfrey Phillips raised prices on pocket-pack cigarettes (Gold Flake Superstar to Rs 79, Pocket Marlboro to Rs 85) following Feb 2026 excise hike, with
Key facts
- Pocket Marlboro Rs 85 from Rs 70
- Gold Flake Superstar Rs 79 from Rs 70
- 8-12% of sales
- 30-40% excise duty hike
- 20% volume decline April
- 800 bps margin decline
Why this matters
The excise-driven disruption could accelerate consolidation opportunities in adjacent FMCG categories as cigarette majors hedge regulatory exposure through diversification M&A.