ITC Ltd. has increased the prices of its Gold Flake Premium cigarettes by Rs 10 per pack, marking the second price hike for the brand this year as cigarette makers grapple with higher taxes and mounting pressure on legal industry volumes.
According to channel checks, the maximum retail price (MRP) of Gold Flake Premium regular-size filter-tipped (RSFT) cigarettes, measuring 60-70 mm, has been increased to Rs 135 for a pack of 10, from Rs 125 earlier. This represents an increase of around 8%.
The revised MRP stocks are expected to reach warehouses by the fourth week of November, according to market sources.
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This is the second price increase for Gold Flake Premium in 2026. The brand had earlier raised prices from Rs 115 to Rs 125 per pack of 10 in June, as reported by NDTV Profit. With the latest revision, the cumulative increase in cigarette prices stands at around 17.4% since the earlier price level.
ITC did not respond to NDTV Profit’s query seeking confirmation of the latest price increase.
The price revision comes at a time when ITC’s cigarette business is facing significant headwinds following an unprecedented increase in cigarette taxes. In its September-quarter commentary, the company said legal industry volumes remained under pressure, highlighting the widening price gap between legal cigarettes and illicit alternatives.
ITC said it was adopting a calibrated approach to mitigate the risk of a disproportionate shift in volumes towards illicit trade while protecting its consumer franchise.
The pressure is already visible in the company’s financial performance. ITC’s cigarette business profit declined 27.2% year-on-year to Rs 3,813 crore in the September quarter, compared with Rs 5,241 crore in the year-ago period. Net cigarette revenue fell 21%.
Gold Flake Premium’s regular-size cigarette segment is particularly important for ITC, accounting for an estimated 46-50% of its cigarette revenue, according to the information available from market sources.
Cigarettes also remain a significant contributor to ITC’s profitability, with margins in the business estimated to be as high as 70%.
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The latest price increase indicates the company’s efforts to balance higher taxation, profitability and consumer affordability while limiting the migration of smokers towards cheaper, illicitly traded products.
ITC has also highlighted plans to strengthen its cigarette portfolio through new variants and trademarks with international appeal to counter competition from smuggled foreign brands.
The company has flagged a sharp increase in seizures of illicit cigarette consignments, pointing to growing exploitation of the tax arbitrage opportunity in the domestic market.
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