ITC to announce second-quarter results on Monday
Investors are monitoring the FMCG major's earnings as higher taxation impacts its cigarette business, according to Mint.
ITC is scheduled to announce its second-quarter financial results for the 2026-27 fiscal year on Monday, November 2, according to Mint. The company's board of directors will meet to review the unaudited standalone and consolidated financial statements for the period ending September 30, 2026.
The earnings report will focus on the performance of the cigarette, agribusiness, paperboards and packaging, and fast-moving consumer goods (FMCG) segments. Investors are assessing how the company is managing the impact of a new cigarette tax regime on profitability and volumes.
Kotak Institutional Equities expects a subdued performance in the cigarette business due to a new taxation structure and price increases. The brokerage estimates that cigarette volumes could decline 9 per cent year-on-year, while net sales and EBIT may fall by 20 per cent and 27 per cent, respectively.
Kotak further expects ITC's consolidated net sales, EBITDA and profit after tax to decline by 4.9 per cent, 17.3 per cent and 20.4 per cent on a year-on-year basis. The brokerage noted that other income could be affected by mark-to-market losses on bonds.
Mahesh M Ojha, VP Research & Business Development at Kantilal Chhaganlal Securities, suggested buying the stock ahead of the announcement, noting an attractive valuation. Ojha recommended a stop-loss of ₹254 with price targets of ₹276 and ₹285, while advising investors to remain mindful of expected weakness in the September-quarter earnings.