02 Aug 2026
ITC, Godfrey Phillips and VST Industries all reported lower net revenue, volumes and profitability in the first full quarter under the new cigarette tax regime.
GST on cigarettes moved to a flat 40 percent in February, with the compensation cess replaced by an additional excise duty of 2,100 to 8,500 rupees per 1,000 sticks depending on length, and April to June was the first full quarter under it. VST Industries shows the mechanism cleanly: revenue nearly doubled to 881.49 crore rupees from 424.93 crore because the tax now sits inside reported revenue, while profit after tax fell 24.4 percent to 42.42 crore from 56.13 crore. The gap between a doubling top line and a shrinking bottom line is the whole effect.