itc

The latest news regarding ITC Limited centers on its Q1 FY27 earnings hit from cigarette tax hikes, resilient consumer division growth

The latest news regarding ITC Limited centers on its Q1 FY27 earnings hit from cigarette tax hikes, resilient consumer division growth, and key strategic IT and rural development partnerships.1. Q1 FY27 Earnings Impacted by Tax ShockProfit Drop: ITC reported a 27% year-on-year drop in consolidated net profit to ₹3,579 crore for the June ***** Burden: Profitability was heavily squeezed by a steep tax overhaul that compressed cigarette EBIT margins by 888 basis ***** Strategy: Instead of an immediate price pass-on, ITC is using phased price hikes to prevent consumers from switching to illegal, smuggled cigarette ***** and Paper Support: Steady demand in dairy, snacks, and a significant recovery in the paperboards and packaging business helped cushion the earnings drop.2. Market Sentiment & Stock MovementsBrokerage Actions: Despite the earnings plunge, top brokerages like Jefferies, Nomura, and Kotak remain constructive. Jefferies upgraded the stock to 'Buy', viewing resilient volume data as a sign that the worst of the tax disruption has ***** Status: ITC shares are currently trading around ₹278, hovering near their 52-week ***** Bets: Retail investors executed major contra bets in the June quarter, pouring massive capital into ITC and other declining blue-chip stocks while institutions offloaded shares.