GRSE Q4 Profit Rises 24% to Rs.303 Crore, Stock Surges 15%<\/a><\/p>\nExcise Duty Increase of Up to 28% Drives Pricing Action<\/h2>\n
The expected price hike follows higher excise duties implemented earlier in 2026 after the Central Excise (Amendment) Bill, 2025.<\/p>\n
The government imposed excise duty of \u20b92,050\u2013\u20b98,500 per 1,000 sticks, depending on cigarette length, in addition to 40% GST.<\/p>\n
According to ICICI Securities<\/span><\/span>, this led to a 22\u201328% increase in overall costs for cigarettes in the 75\u201385 mm category.<\/p>\nThe brokerage also noted that cigarettes longer than 75 mm account for about 16% of ITC\u2019s volumes, with an estimated price impact of \u20b92\u2013\u20b93 per stick.<\/p>\n
Market Reaction Supported by Pricing Action and Cost Pass-Through<\/h2>\n
The stock move follows expectations that price hikes will offset the impact of higher taxation on margins.<\/p>\n
Vinod Nair, Head of Research at Geojit Investments Limited<\/span><\/span>, said, \u201cWhile higher retail prices could temporarily weigh on volumes, cigarette companies have historically displayed strong pricing power, allowing them to protect profitability even in elevated tax regimes.\u201d<\/em><\/p>\nImpact on Market and Investors: Margins vs Volume Trade-Off in Focus<\/h2>\n
For the market, the development reinforces earnings visibility in tobacco companies following the recent cost pressures from higher duties.<\/p>\n
For investors, two key factors remain central:<\/p>\n
\n- Price hikes support margin recovery and profitability visibility<\/li>\n
- Higher retail prices may lead to near-term volume moderation, depending on consumer response<\/li>\n<\/ul>\n
Outlook: Price Increase to Shape Near-Term Earnings Trajectory<\/h2>\n
The proposed price hike is expected to influence earnings in the coming quarters, particularly through margin expansion if volumes remain stable.<\/p>\n
FAQs Investors Are Searching After Cigarette Price Hike News<\/h2>\n
Why are ITC and Godfrey Phillips shares rising?<\/strong>
Shares are rising due to reports of a 17% cigarette price hike expected in May 2026.<\/p>\nHow much will cigarette prices increase?<\/strong>
Prices could rise by around 17%, with Goldflake Premium expected to increase from \u20b9115 to \u20b9135 per pack.<\/p>\nWhat is the impact of excise duty on cigarette companies?<\/strong>
Excise duty increased costs by 22\u201328%, prompting companies to raise prices.<\/p>\nWill higher cigarette prices affect demand?<\/strong>
Higher prices may impact volumes in the short term, but companies typically maintain profitability through pricing power.<\/p>\nIs ITC stock expected to benefit from price hikes?<\/strong>
Yes, price hikes generally improve margins and earnings visibility for ITC.<\/p>\n","protected":false},"excerpt":{"rendered":"ITC and Godfrey Phillips Shares Rise Up to 6.5% After Distributor Checks Signal Price Increase Shares of ITC Ltd and Godfrey Phillips India Ltd rose sharply on April 29 after an NDTV Profit report, citing distributor-level checks (industry feedback from wholesale channels), indicated a 17% increase in cigarette prices from May 2026. At around 1:10 […]<\/p>\n","protected":false},"author":4,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-25224","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/25224","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=25224"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/25224\/revisions"}],"predecessor-version":[{"id":25229,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/25224\/revisions\/25229"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/25228"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=25224"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=25224"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=25224"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=25224"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}