The company's overall consolidated net profit declined to Rs 4,229 crore despite a 5% gain in net revenue to Rs 20,454 crore. A 27.2% profit drop in the cigarette division served as the primary drag following steep tax hikes. Offsetting these headwinds, the non-cigarette FMCG arm delivered its fastest revenue expansion in 14 quarters across personal care, packaged foods, and stationery. Analysts at Jefferies and Nuvama expect gradual volume recoveries to support future financial health.
Key points
Jefferies maintained a Buy recommendation with a target price of Rs 350 based on expectat…: Jefferies maintained a Buy recommendation with a target price of Rs 350 based on expectations of calibrated price hikes.
Nuvama upgraded the stock to Buy from Hold after observing sequential improvements in the…: Nuvama upgraded the stock to Buy from Hold after observing sequential improvements in the cigarette business.
Emkay reduced its price target to Rs 300 while cautioning against weak cigarette volumes…: Emkay reduced its price target to Rs 300 while cautioning against weak cigarette volumes and upcoming Union Budget uncertainties.
Sources checked by our analysis pipeline: 1
The company's consolidated net profit fell to Rs 4,229 crore in the second quarter of FY27 from Rs 5,187 crore in the same period last year. Net revenue rose 5% to Rs 20,454 crore from Rs 19,455 crore a year earlier.
The cigarette business remained the biggest drag on earnings during the quarter. Segment profit declined 27.2% to Rs 3,813 crore from Rs 5,241 crore in the corresponding period last year, while net cigarette revenue fell 21%. ITC's non-cigarette FMCG business delivered its strongest revenue growth in 14 quarters, supported by higher sales across packaged foods, personal care and stationery products.
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