Overview
- ITC raised the maximum retail price of a 10-cigarette Gold Flake regular-size filter-tipped pack by Rs 10 to Rs 135, marking the brand's second price revision in 2026.
- The company and analysts say the move is designed to help absorb higher tobacco taxes and rising operating costs so ITC can protect cigarette margins.
- ITC reported a 20.1% year-on-year drop in consolidated net profit to Rs 4,137.12 crore in the September quarter, with cigarette profits and volumes under clear pressure.
- Market observers warn that successive price increases could weaken legal-market demand and encourage some consumers to switch to cheaper, unregulated cigarettes.
- ITC is accelerating growth in FMCG, paperboards and recent acquisitions to reduce reliance on tobacco revenue and offset earnings pressure from the cigarette business.