Preview: India's ITC dips ahead of Q3 results, brokerages stay cautious on cigarette tax impact

ITC

29/01/2026 06:09

** Shares of consumer goods maker ITC ITC.NS dip 0.61% to 319.20 rupees ahead of Q3 results

** At least six brokerages downgraded co's shares earlier in Jan after government's new tax on cigarettes - its biggest segment - was seen hitting earnings growth

** Nirmal Bang Equities ("hold", PT down to 335 rupees from 495 rupees) expects 5% y/y rise in quarterly profit; cigarette excise duty hike expected to weigh on near-term cigarette vols, resulting in lower target multiples compared to the past

** PhillipCapital ("buy", TP at 480 rupees) expects ~8% growth in co's revenue, supported by FMCG business's 7-8% growth, with some impact from GST-linked channel disruption

** Co posted 7.1% rise in Q2 revenue, supported by solid growth in its cigarettes and packed goods businesses

** Stock rated "hold" on avg by 34 analysts, median PT at 410 rupees - data compiled by LSEG

** ITC dropped ~12% in 2025, stock down 20% so far in Jan

($1 = 92.0630 Indian rupees)

 (Reporting by Surbhi Misra in Bengaluru)

 ((Surbhi.Misra@thomsonreuters.com |  X: https://twitter.com/SurbhiMisra_  |;))