ITC share price: Shares of ITC Ltd were flat at Rs 266.5 in early trade on Tuesday, after the diversified conglomerate reported a 20 percent decline in Q2 FY27 standalone net profit, as higher cigarette taxes and pressure on volumes weighed on profitability. Brokerages CLSA and JPMorgan highlighted continued weakness in the cigarette business, although strong growth across non-cigarette segments offered some support.
CLSA maintained its 'Outperform' rating on ITC with a target price of Rs 390 per share, implying an upside of 46 percent from Monday's closing price. JPMorgan retained its 'Neutral' rating with a target price of Rs 310, expecting a gradual recovery in cigarette profitability as the company implements further price increases and portfolio changes.
ITC stock had closed at Rs 266.40 on Monday, gaining 0.3 percent ahead of the quarterly earnings announcement. The stock has declined 26.8 percent so far in 2026, significantly underperforming the Nifty 50, which has fallen 10.4 percent over the same period. ITC's market capitalisation stood at Rs 3.34 lakh crore at Monday's close.
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CLSA said that ITC's standalone revenue grew 3 percent year-on-year in the September quarter, while EBITDA declined 17 percent following an unprecedented increase in cigarette taxes.