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ITC stock, ITC earnings

ITC stock rebounds after Q2 profit drop as brokers stay bullish

Published on 11/13/2026 at 10:50 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
ITC stock remains in focus after a weak cigarette quarter. Non-cigarette businesses posted stronger growth, while brokerages kept positive views.

ITC earnings reshape the outlook

  • Cigarette profitability weighed on ITC's quarterly result.
  • Non-cigarette FMCG growth and paper recovery provided operating support.
  • Brokerages retained positive views despite an uncertain cost environment.
ITC stock, ITC earnings, Indian FMCG, cigarette business, Q2 FY27, Illustration mit AI erstellt.
ITC stock, ITC earnings, Indian FMCG, cigarette business, Q2 FY27, Illustration mit AI erstellt.

ITC reported a sharp decline in consolidated profit for the July-September 2026 quarter, as pressure in cigarettes outweighed growth in several other businesses. The results were released on November 2, and The Economic Times reported the subsequent broker view and share-price recovery.

Cigarettes remain the main earnings drag

Consolidated net profit fell nearly 19 percent year on year to INR 4,229 crore. Net revenue rose about 5 percent to INR 20,454 crore, but cigarette segment profit dropped more than 27 percent to INR 3,813 crore, while net cigarette revenue declined 21 percent.

The earnings pressure reflects the higher tax burden facing legal cigarettes. ITC has said that industry volumes remain under strain, with the widening price gap to illicit products adding to the challenge for the legal market.

Non-cigarette businesses offer support

ITC's non-cigarette FMCG business delivered its strongest revenue growth in 14 quarters, supported by packaged foods, personal care and stationery. The segment recorded 16 percent revenue growth and 28 percent profit growth, according to the report.

Paperboards, paper and packaging also showed recovery momentum, while the company continued to contend with elevated crude-linked input costs, inflation, freight expenses and geopolitical uncertainty. Uneven monsoons and the risk of El Nino were cited as additional risks for agriculture and food inflation.

Brokerages keep a constructive view

Nuvama upgraded ITC to Buy from Hold and set a target price of INR 310. The brokerage expects cigarette earnings to improve in the second half of the fiscal year as the company adjusts to the higher tax burden. Jefferies maintained a Buy rating with a target of INR 350, while highlighting resilient Indian demand alongside ongoing cost and geopolitical risks.

ITC at a glance

  • Company: ITC Limited
  • Reporting period: July-September 2026, Q2 FY2026/27
  • Consolidated net profit: INR 4,229 crore, down nearly 19 percent year on year
  • Net revenue: INR 20,454 crore, up about 5 percent year on year
  • Key pressure point: Cigarette segment profit fell more than 27 percent

The broader Indian market backdrop is covered in the Current market reports.

More news and analysis are available on ITC stock.

Disclaimer...
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