ITC shares jump 6% in two days after Q2 results. More upside ahead?

ITC shares jumped another 4% on Wednesday, extending gains to 6% over two days after announcing its Q2 results for the ongoing financial year 2027, with target prices from international brokerages still implying more upside.

ITC shares rose to Rs 283.5 apiece on NSE on Wednesday morning, the highest level seen by the stock in nearly three months. The stock has now recovered more than 12% in five sessions after hitting a 52-week low of Rs 253 apiece in late October.

ITC on Monday released its results for the July-September quarter of FY27, reporting nearly 19% year-on-year drop in consolidated net profit to Rs 4,229 crore, from Rs 5,187 crore reported in the corresponding quarter of the previous financial year. Net revenue grew about 5% YoY to Rs 20,454 crore.


Also read | ITC Q2 Results: Profit falls 18% to Rs 4,229 crore, revenue rises 5%

The company’s cigarette business was the biggest drag on earnings during the second quarter. The segment’s profit declined more than 27% to Rs 3,813 crore from Rs 5,241 crore in the corresponding period last year, while net cigarette revenue fell 21%. ITC's non-cigarette FMCG business delivered its strongest revenue growth in 14 quarters, supported by higher sales across packaged foods, personal care and stationery products.

More upside left in ITC shares?

Following the Q2 earnings print, international brokerages remained bullish on the stock. Nuvama upgraded its rating to ‘Buy’ from ‘Hold’, with a target price of Rs 310 apiece. This implies more than 13% upside potential from the stock’s previous closing price of Rs 273.90 apiece on NSE. The brokerage said the company's Q2 performance was slightly ahead of estimates, despite pressure on the cigarette business following the tax increase.

Nuvama believes that ITC’s cigarette business is nearing the bottom and expects EBIT to improve in the second half of FY27 as ITC adjusts to the higher tax burden. The brokerage also highlighted the FMCG business, which posted revenue growth of 16% and profit growth of 28%. This marked the fourth consecutive quarter of double-digit growth for the business.

Jefferies maintained its ‘Buy’ rating on the shares of ITC with a target price of Rs 350 apiece, implying around 28% upside potential from the stock’s previous closing price. The international brokerage said the operating environment remains uncertain amid geopolitical tensions, elevated crude and input costs, and inflationary pressures. However, Indian demand remained resilient across rural and urban markets, although uneven monsoons and El Niño pose risks to agricultural output and inflation, it added.

Also read | What Jefferies, Nuvama said after ITC Q2 results?

ITC share price

ITC shares have gained more than 8% in a week and 10% in a month, but the stock is down around 23% in 2026 so far. The shares of the FMCG major have dropped more than 31% in the past one year.

In the longer term, ITC shares have delivered negative returns of more than 35% in three years but gained 24% in five years. The company has a market capitalisation of more than Rs 3.5 lakh crore.

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.