FMCG giant ITC share price surged as much as 3.81% on the NSE in Monday’s trading session despite the conglomerate posting weaker-than-expected performance for the April-June quarter (Q1 FY26-27).
The FMCG stock opened at ₹284.45 apiece today, as compared to the previous close of ₹281 on Friday last week. The stock touched an intraday high of ₹292.55 apiece on NSE on 3 August.
ITC Q1 results 2026
ITC reported a decline in its June quarter (Q1 FY27) profit as a sharp hike in cigarette taxes and weak performance in its agri business offset healthy revenue growth, underscoring the challenges posed by rising input costs and geopolitical uncertainties.
The Kolkata-headquartered conglomerate, which has interests spanning cigarettes to packaged foods, posted a 27.6% year-on-year increase in consolidated revenue from operations to ₹29,523.30 crore. However, its net profit slipped 15.6% to ₹4,508.79 crore, according to an exchange filing on Friday. The reported profit included a one-time gain of ₹405.88 crore from the revaluation of its existing stake in Sproutlife Foods Pvt. Ltd, the company behind Yoga Bar.
Excluding exceptional items, consolidated net profit after tax declined 23.2% year-on-year to ₹4,103 crore. Consolidated EBITDA (earnings before interest, taxes, depreciation and amortisation) also dropped 24% compared with the year-ago period.
The company’s top-line growth was supported by a 12% rise in its FMCG-Others segment. However, revenue from the cigarettes business fell 25% year-on-year, while the agri business reported a 16.55% decline in revenue to ₹8,082.06 crore.
ITC share price – Should you buy or sell?
Brokerage firm Motilal Oswal has maintained its ‘neutral’ rating on the ITC stock with a target price of ₹300.
“ITC has been trying to lower the tax impact (launched 30 new SKUs recently), but the sharp tax increase and competition from illicit cigarettes would take time to normalise. A calibrated price hike will continue to impact cigarette EBIT performance in the coming quarters. We maintain our Neutral rating on ITC with our SoTP-based TP of INR300 (implying 18x FY28E EPS),” the brokerage firm said in a note.
Meanwhile, brokerage firm JM Financial has lowered the target price to ₹325, while maintaining ‘add’ on the FMCG stock.
“Factoring in higher EBIT decline in cigarettes, we are cutting FY27E EPS by 7%. The stock is trading at 19x/17x FY27E/28E EPS (below LT average) and has a dividend yield of ~5%, which restricts the downside; maintain ADD with a TP of INR 320 (earlier INR 325),” the firm said.
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