ITC Shares Rise Over One Percent Following Second Quarter Results

ITC shares rose over 1% on Tuesday, November 3, after the company reported its Q2 FY27 earnings. Consolidated net profit fell 18.45% year-on-year to ₹4,229.33 crore, down from ₹5,186.55 crore in the same period last year.

Financial Details

Revenue from operations increased 43.85% to ₹30,578.4 crore during the quarter. Total expenses surged 69.6% to ₹25,462.44 crore, while total consolidated income rose 42.33% to ₹31,085.76 crore. The FMCG business posted its fourth consecutive quarter of double-digit revenue growth with a 50 basis point expansion in EBITDA margin. Total FMCG revenue, which includes cigarettes, rose 51.58% to ₹23,455.47 crore. Cigarette revenue grew 72.47% to ₹16,237.11 crore, though volumes faced pressure from higher taxes.

Market Reaction

Axis Direct lowered its target price for ITC to ₹260 per share from ₹285 and maintained a hold rating. Nuvama Institutional Equities upgraded its rating to buy from hold with a target price of ₹310 per share. Gaurav Arora, head of research at SAHI, noted that the stock is testing the upper boundary of its ₹250 to ₹270 consolidation range.

Context

Brokers often adjust their price targets and ratings after a company reports quarterly earnings to reflect changing costs, taxes, and market conditions. Tobacco companies like ITC regularly navigate shifting tax policies that directly impact product pricing, volumes, and profit margins.