Jefferies cuts ITC target to Rs 350 as Q4 profit rises 5% but revenue slips 7%
ITC posted Q4FY26 net profit of Rs 5,113 crore (+4.9% YoY) on price hikes, even as revenue fell 7% to Rs 16,050 crore. EBITDA margin expanded to 40%. Jefferies trimmed TP to Rs 350 from Rs 400 citing cigarette tax hike risk in Q1FY27; Citi, MS, JPMorgan, Macquarie held ratings with cautious near-term view.
What happened
ITC Q4FY26 profit rose 5% to Rs 5,113 crore on price hikes despite 7% revenue decline. Jefferies cut TP to Rs 350 citing cigarette tax hike impact in Q1FY27;
Key facts
- Net Profit Rs 5,113 crore +4.9% YoY
- Revenue Rs 16,050 crore -7% YoY
- EBITDA Rs 6,425 crore +7.3%
- EBITDA Margin 40.03%
- Jefferies TP cut to Rs 350 from Rs 400
- Citi TP Rs 290
- MS TP Rs 346
- JPM TP Rs 325
- Macquarie TP Rs 330
Why this matters
ITC's reliance on cigarette pricing for profit growth amid declining topline strengthens the case for accelerating FMCG and non-tobacco diversification through bolt-on M&A.