Last Updated on February 18, 2026 7:09 pm by BIZNAMA NEWS
BIZ DESK
Cigarette makers witnessed a strong rally on Wednesday as investors cheered fresh price hikes aimed at neutralising the impact of the new excise duty structure introduced from February 1. The move has sharply improved market expectations, with analysts now estimating the pressure on operating profits (EBIT) at barely around 2%, compared to earlier fears of 8–15% margin erosion.
The biggest spotlight remained on Godfrey Phillips India Ltd, which surged nearly 12% intraday to touch ₹2,314.30, backed by heavy trading activity. Market participants said the sharp spike indicates renewed confidence in the company’s ability to pass on higher taxes without major damage to volumes, especially in premium cigarette categories.
ITC Ltd, India’s largest cigarette maker, continued its upward momentum for the third straight session, rising up to 1.6% to an intraday high of ₹330. VST Industries also gained strongly, climbing over 3% during the session.
The rally comes after industry checks suggested that cigarette companies have implemented a fresh round of calibrated price increases across segments. Premium cigarettes have reportedly seen the steepest hikes, while mid and lower categories witnessed moderate increases to protect demand.
Market sentiment improved as investors interpreted the pricing move as a clear sign of strong pricing power in the tobacco sector, despite tougher taxation.
