ITC shares rise 3 per cent after Q2 results
The FMCG company reported a consolidated net profit of ₹4,229 crore for the September quarter despite a decline in cigarette earnings.
ITC shares rose by more than 3 per cent during Wednesday's trading session after the company announced its financial results for the quarter ending on 30 September, 2026, according to Mint.
The company's consolidated net profit for the September quarter of FY27 was ₹4,229 crore, which was lower than the ₹5,187 crore recorded in the same period last year. This decline was primarily attributed to a drop in earnings from the cigarette business.
While net profit fell, consolidated revenue grew by 5 per cent year-on-year to reach ₹20,454 crore from ₹19,455 crore in the previous year. However, earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 15.7 per cent to ₹5,645 crore from ₹6,695 crore.
The cigarette segment's profit saw a 27.2 per cent year-on-year decrease to ₹3,813 crore, while its net revenue fell by 21 per cent. In contrast, the non-cigarette FMCG business achieved its highest revenue growth in 14 quarters, and the paperboards, paper and packaging segment also saw a recovery.
Religare Broking maintained a ‘buy’ rating for the stock with a revised target price of ₹408 per share. The firm noted that while non-cigarette businesses are expected to drive growth, cigarette volume recovery remains uncertain due to higher taxation and rising illicit trade.
Mahesh M Ojha, VP Research & Business Development at Kantilal Chhaganlal Securities, said the technical setup looks encouraging. He suggested traders could maintain a bullish view with upside targets at ₹288, ₹294 and ₹304.