ITC stock rebounds as FMCG growth offsets cigarette pressure
Published on 11/04/2026 at 10:50 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSITC balances recovery and earnings pressure
- ITC's September-quarter profit declined as cigarette taxes weighed on volumes and margins.
- Non-cigarette FMCG, paper and agri businesses provided important support during the quarter.
- Brokerage views remain mixed, with targets ranging from INR 260 to INR 408.
ITC stock extended its recovery on Wednesday, November 4, 2026, after the company's September-quarter results highlighted sharp pressure in cigarettes but stronger momentum in several non-cigarette businesses. Fortune India reported that the stock had gained more than 9 percent in five sessions, while consolidated profit fell nearly 19 percent year on year.
Cigarette weakness weighs on results
ITC reported consolidated profit of INR 4,168.40 crore for the second quarter of fiscal 2027, down from INR 5,126.11 crore a year earlier. Consolidated EBITDA fell 15.7 percent to INR 5,644.83 crore, and the EBITDA margin narrowed to 27.9 percent from 34.3 percent.
Revenue from operations rose 43.9 percent to INR 30,578.40 crore, largely because of higher cigarette excise duty. Excluding excise duty, revenue increased 3.9 percent to INR 20,268.63 crore. Higher taxes continued to pressure legal cigarette volumes, while calibrated price increases aimed to offset part of the burden.
Consumer businesses broaden support
The non-cigarette FMCG segment delivered growth across biscuits, snacks, noodles, spices, salt, frozen foods, homecare and notebooks. According to Fortune India, HDFC Securities expects the segment to support the medium-term outlook, with revenue growth of 19 percent and EBIT growth of 31 percent in the quarter.
Paperboards, paper and packaging revenue increased 36 percent, while segment profit before interest and tax rose 48 percent. The agri-business also grew 12 percent, although geopolitical disruptions and higher freight costs continued to affect exports.
Brokerage targets remain divided
Brokerage assessments reflect both the recovery potential and the risks. Religare Broking retained a Buy rating with an INR 408 target, while HDFC Securities kept an Add rating with an INR 300 target. Elara Securities cut its target to INR 290 from INR 320, and Axis Securities reduced its target to INR 260 from INR 285 while maintaining a Hold rating.
ITC stock at a glance
- Company: ITC Limited
- ISIN: INE154A01025
- Reported period: Second quarter of fiscal 2027, ended September 2026
- Consolidated profit: INR 4,168.40 crore
- Consolidated EBITDA margin: 27.9 percent
India's market backdrop remains relevant for ITC investors; see current market reports.
For more company developments, see more news and analyses on ITC stock.
Fortune India reported the earnings figures, segment trends and brokerage views cited in this article.
