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ITC Q1FY27 preview: FMCG growth may not offset cigarette tax-hit margins

ITC’s Q1FY27 is expected to be weak as cigarette tax-led price hikes pressure volumes and margins. FMCG growth is forecast to remain resilient, while agri revenue may slump on West Asia vessel disruptions and paperboards could improve on higher realisations.

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Reported figures

From the report. Source details below

Q1FY27 results due July 31
Cigarette cumulative tax hikes approximately 45%
Cigarette volumes expected to decline 9% YoY
Cigarette net sales expected to decline 20% YoY
Cigarette revenue expected to drop 22% YoY
Cigarette EBIT expected to fall 32% YoY
FMCG revenue expected to rise 12% YoY
FMCG EBIT margin expected around 8%
Agri revenue expected to decline around 50% YoY
Agri EBIT margin expected around 5%
Paperboards revenue expected to grow 11%
Standalone revenue expected to decline 17.5% YoY
EBITDA projected to fall 27.4%
Standalone net profit projected to decline 24%

Also in the report

  • Overall revenue projected to decline 10.2% YoY by Axis Securities
  • Blended cigarette price hike approximately 25% versus 35-40% needed to offset tax impact

The source

Source Read the source at Financial Express

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Note Information, not investment advice. RetailIntel is not registered with SEBI.