ITC shares to be in focus on Tuesday as Q2 net profit drops 18.5% on higher cigarette taxes
Mint 1 hr ago·2 Nov 2026, 3:44 pm
ITC shares are set for action on Tuesday as the company reported a 18.5% decline in net profit for the September quarter. The drop was primarily driven by a sharp rise in cigarette taxes and increased input costs, which weighed on the company's tobacco segment. Despite this, the company's overall revenue saw a significant jump of nearly 44%.
For investors, the results highlight a mixed bag where the core tobacco business is facing headwinds from regulatory pressures. However, growth is visible in other segments like FMCG, paperboards, and agriculture. The market will likely watch how the company manages these cost pressures and whether its other businesses can sustain the recent growth momentum.
Moving forward, investors should keep an eye on the management's commentary regarding the sustainability of growth in non-tobacco segments and their strategy to offset the impact of higher taxes on cigarette volumes.
Excerpt from Mint
ITC’s September-quarter net profit fell 18.45% to ₹ 4,229 crore as higher input costs and cigarette taxes pressured earnings, despite revenue rising 43.85%. Cigarette operating profit dropped over 27%, while FMCG, paperboards and packaging, agriculture, and food-tech reported growth. Diversified conglomerate ITC is…Read the original at Mint
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Bearish1 stock
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Key takeaways
- Concerns ITC (ITC).
- Category: Results.
- AI reads the tone as negative (potentially bearish) for the stock.
- Flagged as a high-impact, market-moving story.
Why it matters
This is a high-impact development for ITC and could move the stock. The tone is negative — watch for downside reaction. Use the price and stock snapshot to gauge how the market is responding.
