ITC slips 1.15% as cigarette tax overhang clouds FMCG beat; analysts split on FY27 outlook
ITC stock fell to ₹304.50 after GST on cigarettes jumped from 28% to 40% of retail price. FMCG arm impressed with 15% revenue growth and 200bps EBIT margin expansion to 8.3%, while cigarette EBIT beat consensus by 15%. But brokerages model FY27 cigarette volumes down 8% and EBIT down 17%, with target prices spanning ₹290-394.
ITC stock slid 1.15% as analysts flagged cigarette tax overhang post GST hike to 40% of retail price. FMCG beat with 15% revenue growth and 200bps margin expansion, but cigarette volume pressure expected through FY27Q1.
Why this matters
Follows ITC's Q4FY26 print where cigarettes surged 32% and FMCG margins expanded, and Jefferies' earlier target cut to ₹350. Tax shock now reframes the FY27 cigarette trajectory.
Retail-company signals steady at 923 over the last 90 days.