ITC Share Price Gains Post Q2 Result: Should You Buy, Sell, Or Hold? Brokerages Target Price Revealed!

ITC Share Price Today: Shares of diversified conglomerate ITC Limited were trading higher on Friday after the announcement of its second-quarter results for the financial year 2025-26. ITC had reported a 4% year-on-year increase in its net consolidated profit and a marginal dip in its revenue.

ITC shares were trading 1.28% higher at Rs 424.05 per share on BSE with a market capitalisation of Rs 5,31,180.32 crore at 10:36 am. THe stock had touched an intraday high mark of Rs 425.85 per share and an intraday low mark of Rs 418.35 per share.

ITC Q2 Review: Healthy Core Business, Resilient Performance

Despite a challenging environment, ITC continued to showcase resilience in its core business including cigarettes, FMCG segment, etc. ITC's consolidated gross crigarette sales jumped around 6% year-on-year (YoY), against Motilal Oswal's estimated 7% growth, whereas, its volume growth stood at 6%, meeting Motilal Oswal's estimate.

The premium cigarette segment continued to outperform, with cigarette EBIT increasing by 4.2% YoY (est. 5% YoY). EBIT margin contracted 100bp YoY to 58% (est. 58%), impacted by the inflationary leaf tobacco prices, noted Motilal Oswal in its report.

ITC delivered missed the Q2 earnings estimate, as its standalone revenue fell by 3% on an annual basis due to impact of decline in Agri-business, noted Systematix Institutional Equities in its report.

ITC Share Price Recommendation

ITC is likely to get the benefit of improved macroeconomic environment and favourable factors like GST rate cut, etc may act as a catalyst for boosting consumption sentiment, noted Motilal Oswal in its report on Friday. The brokerage added that the conglomerate's
FMCG performance may improve in the coming quarters.

"We model 9% revenue CAGR during FY25-28E. If ITC sustains mid-single-digit volume growth in the cigarette business and the FMCG business sees a recovery in 2HFY26, we expect a valuation re-rating," noted Motilal Oswal in its report.

The brokerage has recommended a buy rating for ITC share price with a target price of Rs 515 per share.

"We reiterate our BUY rating on ITC with our SoTP-based TP of INR515 (implying 27x Sep'27E P/E." Systematix has given a 'Hold' rating for the stock with a target price of Rs 445 per share.

ITC Q2 Result Recap

ITC Ltd on Thursday reported a 4.1 per cent year-on-year rise in its consolidated net profit to Rs 5,187 crore for the second quarter of the 2025-26 fiscal as compared to Rs 5,054 crore in the same period last year.

Consolidated revenue from operations for the July-September quarter marginally declined to Rs 21,256 crore from Rs 21,536 crore a year ago, reflecting a normalisation in the agri business that had witnessed an exceptional export base in the previous year, the company informed the bourses.

Its FMCG segment, comprising cigarettes and other branded packaged foods and personal care products, remained the key growth driver.The segment revenue rose 7 per cent year-on-year (YoY) to Rs 15,473 crore from Rs 14,463 crore.

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