ITC Ltd Main reasons for fall

The finance ministry has notified higher excise duty on cigarettes (₹2,050–8,500 per 1,000 sticks) plus an additional health cess on tobacco and pan masala from 1 February 2026, significantly increasing the tax burden on ITC’s core cigarette business. Markets fear volume pressure, possible down‑trading/illicit trade, and margin impact in the cigarettes segment, which still contributes a very high share of ITC’s operating profit.