ITC raises cigarette MRPs: Classic Connect up 9.7%, Gold Flake Super Star up 12.7%

ITC has raised prices on select cigarette brands as higher tobacco taxes take effect. A 20-cigarette Classic Connect pack now costs ₹428, up from ₹390, while Gold Flake Super Star’s 10-stick pack rises to ₹89 from ₹79. New-price stock is entering the market.

— Source publishedWed, 16 Sept, 2026, 08:29 IST·First seen Wed, 16 Sept, 2026, 09:32 IST·Source NDTV Profit

What happened

ITC Limited · ITC has again raised MRP on Classic Connect and Gold Flake Super Star cigarettes as it offsets a higher tobacco tax burden. Dealer checks show

Key facts

  • Classic Connect 20-cigarette pack: Rs 428, up from Rs 390 (9.74%)
  • Gold Flake Super Star 10-cigarette pack: Rs 89, up from Rs 79 (12.66%)
  • GST rate: 40% from February 1
  • Classic Connect previously rose from Rs 300 to Rs 360 and then Rs 390
  • Gold Flake Super Star previously rose from Rs 59 to Rs 70, then Rs 79

Why this matters

The increases reinforce tobacco’s cash-generative but regulation-exposed profile, making tax sensitivity and consumer trade-down key considerations in portfolio and capital-allocation decisions.

What to watch

  • NielsenIQ or industry indications of cigarette volume growth versus value growth after new-price stock reaches outlets.
  • Whether Godfrey Phillips, VST Industries, and other cigarette players announce comparable MRPs.
  • Retailer reports on premium-pack offtake, loose-cigarette demand, and migration to lower-priced brands.
  • Changes in illicit-cigarette seizures, affordability commentary, or policy scrutiny following the tax increase.
  • ITC management commentary on cigarette volumes, price-mix, downtrading, and segment EBIT margin in the next earnings update.
  • Extend revised MRPs to additional cigarette brands and pack sizes after assessing early market absorption.
  • Use differentiated pricing by brand tier, seeking to preserve premium realization while maintaining opening-price-point affordability.
  • Increase retailer communication and inventory monitoring to prevent old-price/new-price stock confusion and channel leakage.
  • Potentially support key brands with trade schemes, visibility incentives, or targeted consumer activation if offtake slows.
  • Competitors are likely to review their own tax pass-through, creating a broader industry pricing reset over the next few weeks.