ITC slips 1.15% as cigarette tax overhang clouds FMCG beat; analysts split on FY27 outlook

ITC stock fell to ₹304.50 after GST on cigarettes jumped from 28% to 40% of retail price. FMCG arm impressed with 15% revenue growth and 200bps EBIT margin expansion to 8.3%, while cigarette EBIT beat consensus by 15%. But brokerages model FY27 cigarette volumes down 8% and EBIT down 17%, with target prices spanning ₹290-394.

ITC fell 1.15% to ₹304.50 as GST on cigarettes jumped to 40%, overshadowing a 15% FMCG revenue beat and 200bps margin gain.

The Hindu BusinessLine · 5/22/2026, 6:41:08 AM · Ask about this →

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