ITC Q1FY27 preview: FMCG growth may not offset cigarette tax-hit margins
ITC is expected to report a weak June quarter as cigarette tax-led price hikes curb volumes and profitability. Axis Securities projects cigarette revenue to fall 22% year-on-year and EBIT 32%, while FMCG revenue could grow 12%.
ITC’s Q1FY27 is expected to be weak as cigarette tax-led price hikes pressure volumes and margins. FMCG growth is forecast to remain resilient, while agri revenue may slump on West Asia vessel disruptions and paperboards could improve on higher realisations.
Why this matters
ITC's weak Q1FY27 outlook follows recent signals of a ₹8 final dividend payout and a 52-week high, even as Future Retail group stocks reached new lows.
Retail-company signals are accelerating, up 309700% quarter-on-quarter.