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ITC, Godfrey Phillips, VST: What analysts expect from cigarette stocks in Q2 after new tax regime | Best stock to buy?
Mint 46 min ago·5 Oct 2026, 9:26 am
ITC and other cigarette makers are bracing for a challenging second quarter as the new tax regime takes effect. The government has increased the specific excise duty on cigarettes, which is expected to squeeze profit margins in the near term. However, analysts believe this pressure may be temporary, as companies now have more time to adjust their pricing strategies and pass the higher costs on to consumers.
For investors, this period of transition is critical. The key to navigating this phase will be the company's ability to maintain its market share and manage operating expenses effectively. While the immediate impact on margins may be negative, a strong execution of price hikes could stabilize the earnings trajectory in the coming quarters.
Excerpt from Mint
According to analysts, with companies now having more time to implement price increases and pass on higher taxes to consumers, some sequential improvement in margins in Q2 FY27 is expected. Indian tobacco and cigarette manufacturing companies like ITC , Godfrey Phillips India, and VST Industries faced a significant…Read the original at Mint
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Key takeaways
- Concerns ITC (ITC).
- Category: Results.
Why it matters
A routine update for ITC. Use the price and stock snapshot to gauge how the market is responding.
