ITC cigarette volumes hold up after tax hike, easing illicit-trade concerns
ITC shares rose as much as 4.11% to ₹292.55 after resilient cigarette volumes suggested staggered price increases are protecting market share despite higher taxes. Brokerages expect profitability to recover gradually through FY2027, even as quarterly profit fell 27% to ₹3,579 crore.
ITC shares rose after resilient cigarette volumes eased concerns that recent tax hikes would drive consumers to illicit products. Brokerages said staggered price increases are preserving market share and should support margin and profitability recovery, despite a 27% quarterly profit decline.
Why this matters
The update reverses concern from the recent signal on ITC cigarette sales slumping 22% after tax-led pricing, while reinforcing the view that tax-driven revenue gains can mask pressure on volumes and profits.
Retail-company signals are accelerating, up 225067% QoQ.