ITC to recalibrate cigarette pricing and rework portfolio after tax hike
ITC plans calibrated price actions, new SKUs and a portfolio rearchitecture to manage the impact of February tax changes and curb illicit-trade risk. Its cigarette revenue grew 13.7% to ₹37,100 crore in FY26, while FMCG revenue rose 10.1% to ₹24,210 crore.
ITC will use calibrated cigarette pricing, new SKUs and portfolio rearchitecture to mitigate February tax-hike fallout and illicit trade. Its cigarette business remains volatile, while FMCG revenue grew 10.1% in FY26 amid evolving premiumization and quick-commerce demand.
Why this matters
The move follows tobacco supply-chain pressure, when Andhra Pradesh's CM urged ITC, Godfrey Phillips and VST to resume buying amid a surplus glut. It also follows ITC's rollout of AI climate-risk tools across 140 sites and Climate Smart Agriculture expansion to 32 lakh acres.
Retail-company is accelerating, up 1,045,500% QoQ.