New Research Reports

ITC continued to deliver a healthy performance in core segments in 3QFY26. Consol. gross cigarette sales grew 8% YoY (est. 7%) and volume rose ~6.5% (vs. est. 6%). The premium cigarette segment continued to outperform.

Q3FY26 performance: ITC's net revenues grew by 5.7% YoY to Rs.18,017.1cr in Q3FY26. Growth was aided by 11.1% YoY growth in FMCG-others and 8% YoY growth in Cigarettes business. Gross margins witnessed 46bps YoY improvement to 54.9% due to favourable input price environment. EBITDA margins improved...

We revise our rating to HOLD on the stock with an upside potential of 8% from the CMP.

Significant tax hike in cigarettes after a brief period of stable tax: Government has announced significant increase in the tax rate on cigarettes in the range of 20-55% (depending on various sizes) after a brief period of stable tax environment over FY22-25. Revised Excise duty on the cigarette stands in the range of Rs2,100/1000 sticks to Rs8,500/1000 sticks depending on the size of the cigarettes. This will be over and above the GST rate hike to 40% from 28% on cigarettes. Tax hike on cigarettes and other tobacco products will be effective from 1st Feb, 2026 with end of...

The government in its recent notification has increased taxes on cigarettes, effective from 1st Feb’26. New rates will increase the taxes on cigarettes by ~50% (assuming NCCD continues).

*over or under performance to benchmark index In Q2FY26, ITC's standalone revenue declined 2.7% YoY to Rs. 19,148cr, due to a sharp drop in agri business exports. However, core segmentscigarettes and...

Resilient cigarette volumes, steady FMCG growth, and expected margin recovery from easing input costs underpin our positive outlook.

About the stock: ITC is diversified consumption play with presence in businesses such as cigarettes, FMCG, Agri and Paperboard, Paper & Packaging (PPP) in India. Its strategy hinges towards utilising funds generated from cash cow cigarette business in improving the growth of FMCG and other businesses. The company...

With an upside potential of 15% from the CMP, we maintain our BUY rating on the stock.

ITC’s Q1FY26 performance stood below our estimates across the board, with
revenue growth below our estimates by 3.6% mainly led by higher intersegment
adjustments, while EBITDA and Adjusted net profit stood below our estimates led by poor operational performance.

ITC posted a mixed performance in Q1FY26, with strong revenue growth driven by cigarette and agri business, while margins declined sharply and missed estimates.

With an upside potential of 18% from the CMP, we maintain our BUY rating on the stock.

ITC sustained healthy performance in core segments in a tepid consumption environment, though margins remained under pressure.

Sales 21% higher vs consensus on one off sales in Agribusiness. EBITDA also 9% above cons.

ITC’s net revenues (including other operating income) grew by 9.6% y-o-y to Rs. 17,248 crore driven by 6% y-o-y growth in the cigarette business’s net revenues and a 17.7% y-o-y growth in the agribusiness’s revenue.

Sales 3% higher vs consensus likely on strong cigarette volumes. EBITDA 5% above cons. on higher margins

We are upgrading ITC from Accumulate to BUY as we expect current margin/growth pressures to subside post 1H26. ITC is suffering margin pressure in cigarettes (high leaf tobacco prices and volume focused strategy), Paper (High wood prices and dumping) and FMCG (Tepid volumes, high input costs and hit in stationary business). However, we expect the scenario to change as leaf tobacco prices have started softening in current season, new wood supplies, integration of century paper and bottomed out margins (~40%...

ITC delivered consolidated revenue growth (ex-hotel business) of 9% YoY (beat) in 3QFY25, mainly led by the cigarette business. EBITDA grew by 2% YoY to INR63.6b. APAT declined 7% YoY to INR48b.

Sales were 3% higher vs consensus likely reflecting strong cigarette volumes. EBITDA was 5% below expectations due to inflation