ITC LTD. RISE 3% DESPITE WEAK CIGARETTE BUSINESS

Shares of ITC Ltd surged nearly 3%. The stock continued its upward momentum following the company's Q2 results, which highlighted strong growth in its non-cigarette FMCG business despite weakness in cigarette segment profitability. The shares extended their gains after rising 2.8% in the previous trading session. Brokerage firms maintained cautious-to-positive views on the stock, as strong performance in non-cigarette businesses helped offset continued pressure on cigarette earnings. Despite the recent recovery, ITC shares have declined 24.3% so far in 2026, significantly underperforming the Nifty 50, which has fallen 8.5% during the same period. The company's market capitalisation stood at approximately ₹3.46 lakh crore. For the September quarter, ITC reported a 20.1% year-on-year decline in standalone net profit to ₹4,137.12 crore, compared with ₹5,180 crore in the corresponding quarter last year. However, revenue from operations increased 45% to ₹28,317.7 crore, supported by growth in non-cigarette businesses and cigarette price hikes following the tax increase. The cigarette business continued to face profitability challenges. Segment profit before interest and tax declined 27%, even as segment revenue jumped 78%. In contrast, ITC's non-cigarette FMCG business delivered a strong performance, with revenue rising 16%, marking its highest growth in 14 quarters. Segment PBIT also increased 28%. The contrasting performance of its cigarette and non-cigarette businesses remains a key factor influencing investor sentiment towards ITC shares.