ITC raises Classic Connect and Gold Flake Super Star cigarette prices

ITC has increased MRPs for Classic Connect and Gold Flake Super Star packs following higher tobacco taxes. The hikes could protect cigarette margins, though further increases may test consumer demand and volumes.

— Source publishedWed, 16 Sept, 2026, 09:35 IST·First seen Wed, 16 Sept, 2026, 10:41 IST·Source NDTV Profit

What happened

ITC raised MRPs for Classic Connect and Gold Flake Super Star cigarettes to offset higher tobacco taxes. The latest hikes may support margins but raise risks to

Key facts

  • Classic Connect 20-pack MRP increased to Rs 428 from Rs 390 (9.74%)
  • Gold Flake Super Star 10-pack MRP increased to Rs 89 from Rs 79 (12.66%)
  • Cigarettes moved to 40% GST from February 1
  • ITC shares rose as much as 2.13% to Rs 263.50

Why this matters

The price reset underscores ITC’s ability to pass through taxes in established cigarette brands, reinforcing the strategic value of premium tobacco assets with strong pricing power.

What to watch

  • Monthly or quarterly cigarette volume growth versus net revenue per cigarette and segment EBIT margin.
  • Competitor MRP revisions and widening or narrowing price gaps in premium, mid-price and value cigarette tiers.
  • Evidence of downtrading, including stronger demand for lower-price ITC brands, smaller pack formats, bidis or loose-stick purchases.
  • Further central or state tax, cess, enforcement or plain-packaging-related policy changes affecting legal-cigarette affordability.
  • Distributor and retailer feedback on inventory replenishment, consumer resistance and increased demand for discounted or non-duty-paid products.
  • Monitor whether ITC raises prices across additional Classic, Gold Flake, Navy Cut and Capstan SKUs to close price gaps within its portfolio.
  • Expect rival manufacturers to assess matching hikes quickly, especially in premium and mid-price segments where relative pricing drives switching.
  • Watch for ITC to use pack-size, promotional-discount and trade-margin adjustments to manage consumer affordability without reversing headline MRPs.
  • Look for management commentary emphasizing value growth, premium mix and tax pass-through rather than unit-volume growth in the next results cycle.