06
Jan
A sharp increase in excise duty on cigarettes, effective February 1, 2026, has triggered a broad sell-off across Indian tobacco stocks as investors reassess the outlook for domestic cigarette demand and profitability. The government has notified additional excise duties ranging from ₹2,050 to ₹8,500 per 1,000 cigarettes, over and above the existing 40 percent Goods and Services Tax. In the sessions following the announcement, shares of major cigarette-focused companies came under heavy pressure. ITC Ltd. declined close to 10 percent in a single trading session, eroding an estimated ₹50,000 crore in market capitalisation. Godfrey Phillips India also recorded sharp declines,…
