ITC sees major block deal. Citi upgrades ITC stock to Buy

Published on 10/09/2026 at 11:16 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Citi upgraded ITC from Sell to Buy on October 8, 2026. For ITC stock, Q1 FY27 net revenue was INR 19,110 crore.

ITC saw a 366,695,297-share block deal valued at INR 9,436.90 crore on October 8, 2026.
Citi upgraded ITC from Sell to Buy and raised its target from INR 270 to INR 300.
Q1 FY27 net revenue fell 11.00 percent year over year to INR 19,110 crore.
ITC closed at INR 255.00 on the NSE on October 8, 2026, with a 52-week range of INR 253.15 to INR 426.40.

ITC, INE154A01025, Illustration mit AI erstellt.

ITC (ISIN INE154A01025) saw a block deal involving 366,695,297 shares valued at INR 9,436.90 crore on October 8, 2026. On the same date, Citi upgraded ITC from Sell to Buy and raised its target from INR 270 to INR 300, according to Business Today.

Chronology of three signals

On September 28, 2026, ITC acquired the remaining 13,445 Sproutlife Foods shares, according to StockFin. On October 8, the block deal involved 366,695,297 shares and was valued at INR 9,436.90 crore, while on October 9, a Motilal Oswal report assessed Q1 FY27 results with net revenue of INR 19,110 crore.

What does the block deal mean for earnings?

The transaction arrived as cigarette taxation continued to weigh on the latest operating picture. DSIJ reported that consolidated Q1 FY27 net revenue fell 11.00 percent year over year to INR 19,110 crore, while EBITDA declined 24.00 percent to INR 5,180 crore. Adjusted profit after tax fell 22.00 percent year over year.

The pressure was concentrated in cigarettes and agriculture. Cigarette net sales fell 22.00 percent year over year to INR 6,190 crore, while FMCG segment sales increased 15.00 percent to INR 6,690 crore. FMCG EBIT grew 22.00 percent to INR 490 crore, showing that portfolio breadth partly offset the weaker tobacco result.

Tax pressure meets FMCG resilience

Motilal Oswal retained a Neutral rating and a INR 300 target in the report cited by DSIJ. Its assessment puts the cigarette tax pass-through and volume recovery at the center of the earnings debate, while paperboard sales increased 9.00 percent to INR 2,310 crore and paperboard EBIT rose 43.00 percent to INR 220 crore in Q1 FY27.

ITC's investor-relations page reports fiscal 2026 gross revenue of INR 808.67 billion and EBITDA of INR 252.08 billion. The company also lists FMCG, packaging, paperboards and specialty papers, agriculture and information technology among its businesses.

ITC stock stays near yearly low

ITC closed at INR 255.00 on the NSE on October 8, 2026, down 4.03 percent from the prior close of INR 265.70. The NSE-listed stock was only INR 1.85 above its 52-week low of INR 253.15 and had a 52-week high of INR 426.40; market capitalization stood at INR 3.2 trillion.