ITITC500875Fmcg, tobacco

ITC reported strong non-tobacco business growth in Q2 even as tobacco business showed expected weakness; Nuvama upgraded the stock to buy

By ScoutQuest · Tue 3 Nov 2026, 8:59 AM IST · 1 min read

Current valuation

16-17 times one year forward earnings

Cigarette volume decline

7-8 percent

Cigarette profit decline

27 percent

Digital-first business ARR

1800 crore rupees

Heard on business television between 09:02:29 - 09:05:29 IST.

• Abnish Roy of Nuvama said ex-cigarette businesses, especially FMCG and paper, performed reasonably well.
• Cigarette business saw 7-8% volume decline and 27% profit decline, in line with estimates, with profit decline improving.
• He upgraded ITC's rating from hold to buy, expecting near zero probability of a tax hike on February 1 given industry carnage from illegal trade.
• He expects profitability to turn neutral by Q4 after a soft base of 3-4 quarters, and good money to be made in ITC over 6-12 months.
• He noted ITC's digital-first yoga bar business has done 1800 crore rupees ARR.

The call above is Abnish Roy, Nuvama's, reported here as they made it. Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.

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