Cigarette Stocks Puff Up: Godfrey Phillips, ITC Share Price Rally After December Slump
Cigarette stocks were lighting up the charts on February 6! Godfrey Phillips soared over 11%, while ITC puffed ahead by 5%, leaving traders exhaling in relief. The current rally follows a December period when Parliament approved the Central Excise (Amendment) Bill, 2025, which raised concerns about increased cigarette and tobacco product duties. The market rebounded because investors who anticipated a tax burden started purchasing undervalued stocks.
The company demonstrates that its operations increase value through its core business activities, which drive demand and customer need for its services. Godfrey Phillips and ITC demonstrate that their business operations maintain profitability because consumers continue buying their products.
Cigarette Prices Soar from Feb 1, ITC And Godfrey Phillips Stocks Rally Ater A Steep Fall
The price increase, which started on February 1, created financial difficulties for people who smoke cigarettes. The Finance Ministry established a new excise duty, which was added to the current 40% GST that applies to cigarette sales at rates between Rs 2,050 and Rs 8,500 per 1,000 cigarette sticks, depending on their length.
This legislation followed parliamentary approval of the Central Excise (Amendment) Bill 2025, which had already caused market disruptions when it passed in December. The stock prices of cigarette companies, including ITC and Godfrey Phillips, increased because investors adapted to the new market conditions. The duty created a new cost structure, affecting product prices while traders and smokers stayed informed about market changes.
Intraday Godgrey Phillips And ITC Share Price Performance
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ITC: Top Nifty gainer, trading 4.72% higher at Rs 325 per share at 12:15 pm.
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Godfrey Phillips: Up 11.3% to Rs 2,207 per share.
ITC Q3 FY26: Cigarettes and Snacks Fuel Stock Surge
ITC increased its Q3 FY26 financial results, helping to maintain investor confidence. The company reported a net profit of Rs 5,018 crore, while its operating revenue rose to Rs 21,707 crore from Rs 20,350 crore. The cigarettes segment maintained strong performance, increasing 8% despite higher leaf tobacco costs and growing export demand.
The consumer goods segment experienced an 11% increase due to popular products such as Aashirvaad flour, Sunfeast biscuits, and Yippee noodles. The market noticed, Nifty FMCG topped the charts, with ITC leading a 5.5% rally. Value buyers jumped in, showing strong faith in ITC’s diversified portfolio and steady performance.
Godfrey Phillips Q3 FY26: Profits Rise, Revenue Soars, Investors Eye Philip Morris Results
Godfrey Phillips is puffing its way to stronger numbers in Q3 FY26! The company achieved an 8.7% increase in net profit, reaching Rs 343.29 crore compared to Rs 315.84 crore in the previous year. Operational revenue rose 15.68%, totaling Rs 2,189.93 crore. Total expenses grew 18% to Rs 1,843.96 crore, but overall income-including other sources-climbed 15.2% to Rs 2,234.51 crore.
Its cigarette brands, including Four Square, Red & White, Cavanders, Tipper, North Pole, and licensed Marlboro, continue to drive sales. The stock’s recent surge is also fueled by investor anticipation ahead of results from promoter Philip Morris.