Motilal Oswal keeps ITC Neutral at Rs 300 after cigarette earnings miss
ITC’s Q1 FY27 consolidated cigarette revenue fell 22% year-on-year to Rs 10,410 crore, while cigarette EBIT declined 32% to Rs 3,770 crore. Motilal Oswal cited tax pressure, measured price hikes and high-single-digit volume decline despite resilient FMCG and paper growth.
Motilal Oswal retained its Neutral rating and Rs 300 target on ITC after Q1 FY27 cigarette revenue and EBIT missed estimates. Tax pressures, gradual price hikes and high-single-digit volume decline are expected to weigh on cigarette earnings despite healthy FMCG and paper growth.
Why this matters
No related recent signals are provided. ITC's Q1 FY27 cigarette miss shifts attention to tax pressure, pricing discipline and volume recovery, even as FMCG and paper growth remains resilient.
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