ITC share price target 2026: Brokerages Nuvama, Goldman Sachs and Morgan Stanley have offered mixed outlook on FMCG major ITC Limited’s stock, a day after it declared its earnings for the fourth quarter of the financial year ending March 2026.
Shares of ITC closed at Rs 308.50 on Thursday, up 0.16 per cent from the previous close on the BSE.
– Maintain HOLD with a TP of Rs 350 vs Rs 365
– Sales down ~7% YoY, below estimate
– EBITDA up ~7% YoY, ahead of estimates
– Cut FY27/28E EPS 5/6% amid weak cigarette and agriculture businesses
– Cigarette tax hikes remain key overhang
– Q4 cigarette profitability — aided by transition-led tax/inventory benefits — unlikely to sustain into Q1FY27
– CO.’s cigarette EBIT growth expected to remain resilient
– FMCG’s profitability surge expected to sustain
– Q4FY26 earnings not comparable YoY due to cigarette tax structure change
– Brokerage expects peak earnings impact from cigarette tax hike in Q1FY27
– GS estimates cigarette volume decline of ~8% and EBIT decline of ~17% in FY27
– FMCG business growth accelerates to 15% YoY
– FMCG EBITDA margin improves 200bps YoY
– Paper business EBIT margins recover on lower wood costs and anti-dumping duty benefits
– Agri EBIT declines 29% YoY due to Middle East shipping disruptions
– Brokerage expects agri headwinds to persist in near term
– Cigarette EBIT growth improves to 7.2% in Q4
– FMCG revenue growth accelerates to 14% YoY excluding Sresta
– FMCG EBITDA margin improves 200bps YoY to 11%
– Brokerage says operational environment could remain challenging after cigarette tax hike
– Agri business revenue declines 16% YoY amid geopolitical disruptions
– Morgan Stanley expects stock to remain range-bound near term due to uncertainty around cigarette volume growth
ITC reported a consolidated profit of Rs 5,018.45 crore in the quarter ended March 31, 2026. The company had posted a consolidated profit of Rs 19,807.88 crore in the January-March quarter a year ago, according to a regulatory filing from the Kolkata-headquartered company.
ITC’s revenue from the sale of products stood at Rs 21,463.36 crore in the March quarter. Its revenue from operations was at Rs 21,694.67 crore.
The company, which has completed the amalgamation of Wimco and Sresta Natural Bioproducts from respective appointed April 1, 2025, said its results are not comparable.
“The carrying value of assets and liabilities of Wimco as appearing in the Consolidated Financial Statements of the Company and the fair value of assets and liabilities of Sresta have been recorded in accordance… Accordingly, the financial results of the Company and ‘FMCG – Others’ segment include those of Sresta from 13th June, 2025 and consequently are not comparable with previous periods,” said ITC.
Its expenses were at Rs 17,348.38 crore in the March quarter of FY 26.
For the entire FY26, ITC’s net profit was at Rs 2,1018.15 crore. Its total consolidated income was at Rs 92,339.13 crore for the financial year ended on March 31, 2026.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
