ITC sets board meeting date to declare Q2 results 2026; net profit may decline due to cigarette taxation — share outlook

ITC Q2 results 2026 | What market estimates According to HDFC Securities' earnings report on the Indian FMCG sector, ITC may report a YoY decline in net income. The brokerage said that the company's revenue may grow by 7% to about Rs. 20,816 crore, but EBITDA is estimated to fall by 24% to ₹5,094 crore, and adjusted PAT by 24% to ₹3,846 crore. HDFC Securities' report further added that, for ITC, the cigarette business is responsible for the decline in net profit and income, with an excise surge cutting net sales and volumes by about 8% and weaker margins across segments.

The brokerage estimates ITC's EBITDA margin at 24.5%, down about 990 bps YoY. On why ITC's cigarette revenue is expected to decline, SEBI-registered market expert Anuj Gupta said, “ITC's cigarette revenue is hitting the company's profit dearly. However, for this slump, the company is not responsible, but the newly levied taxes are responsible for this.” The SEBI-registered market expert said that higher cigarette taxes introduced in February 2026 have put pressure on profitability.

ITC's staggered price increases are intended to recover costs while limiting volume losses and migration to illicit products. Gupta said that the company's soaring expenses are also eroding the margins and net profit of the Indian FMCG major. According to Reuters, GoI imposed an excise duty on cigarettes between 2,050 ​and 8,500 rupees per thousand sticks, in ​addition to a 40% consumption tax — a move ⁠analysts called "a negative surprise for the industry.

ITC share price history ITC share price today finished marginally lower at ₹263.50 apiece on the NSE. The stock has delivered a zero return over the past year, sliding over 35%. In YTD terms, the ITC share price has shed over 25%, whereas in six months, it has declined 14%. ITC share price target by 2026 On suggestions to ITC shareholders, Mahesh M Ojha said, “ITC share price has strong support at ₹246.

Existing shareholders are advised to hold the scrip, maintaining a stop-loss at ₹246. The stock may touch ₹275 in the near-term on a potential bounce back.” On suggestions to fresh investors, Mahesh M Ojha said, “Fresh investors can also buy ITC shares at the current market price, maintaining a stop-loss at ₹246 for the near-term target of ₹275.”