ITC schedules Nov 2 board meeting as tax hike squeezes cigarette profits

ITC will hold its board meeting on 2 November 2026 to approve July‑September quarter results. The filing says the board will review unaudited standalone and consolidated financials, segment revenue, assets, liabilities and cash‑flow for the quarter and the half‑year ended 30 September 2026. HDFC Securities expects revenue to rise about 7% to roughly Rs 20,816 crore, but EBITDA to drop 24% to Rs 5,094 crore and adjusted profit after tax to fall 24% to Rs 3,846 crore. The brokerage points to the cigarette segment as the main cause of the profit squeeze, noting an 8% dip in net sales and volumes after a surge in excise duty. Market expert Anuj Gupta, a SEBI‑registered analyst, said the new taxes introduced in February 2026 are responsible, not the company. The tax hike adds an excise duty of Rs 2,050‑8,500 per thousand sticks and a 40% consumption tax, a move analysts called a negative surprise. ITC’s share closed at Rs 263.50, a marginal dip, and has given zero return over the past year, sliding more than 35%. Year‑to‑date it is down over 25% and 14% in the last six months. Advisor Mahesh M Ojha sees strong support at Rs 246, urging existing holders to keep a stop‑loss at that level and eye a short‑term rise to Rs 275. He gives the same entry point to fresh investors.

Context

Higher cigarette taxes aim to curb consumption but hurt manufacturers like ITC, whose profit depends heavily on that segment. The market’s reaction shows how fiscal policy can quickly affect stock performance.