ITC Share Price in Focus Ahead of Q2 Results Amid New Tobacco Taxes

ITC shares will stay in focus as the company prepares to release its financial results for the second quarter of the 2026-27 financial year on November 2, 2026. The board of directors will meet to review both standalone and consolidated financial statements for the quarter and half-year that ended on September 30.

Business Performance

Market experts note that higher taxation continues to weigh heavily on the core tobacco division. Kotak Institutional Equities projects that cigarette volumes will drop 9% compared to the same period last year, following a 5% fall in the previous quarter. Analysts attribute this pressure to a new tax regime causing cumulative blended price hikes of 32 to 34% over the past six months. Consequently, net sales and earnings before interest and taxes for the tobacco unit are expected to fall 20% and 27%, respectively. Besides tobacco, the company's performance across its everyday goods, paperboards, packaging, and farming divisions will also draw close attention from market participants.

Market Projections

Brokers expect the firm's overall consolidated metrics to remain under pressure for the September quarter. Kotak anticipates that net sales, operating profit, and net profit will contract by 4.9%, 17.3%, and 20.4% year-on-year, respectively. At the same time, bond yields could create mark-to-market losses affecting other income streams. However, some brokerages view the valuation as appealing. Mahesh M Ojha, Vice President of Research and Business Development at Kantilal Chhaganlal Securities, advises buying the stock ahead of the announcement with a stop-loss of 254 rupees and price targets starting at 276 and 285 rupees.

Context

Large consumer goods conglomerates with diverse product portfolios often balance regulatory pressures in one division with steady demand in other segments like packaged foods or paper. Tobacco taxation in particular remains a major policy tool used by governments to curb consumption while significantly impacting corporate revenues for firms in this sector.