ITC Q2 Results Preview, 2 November 2026: Brokerages Expect Profit to Fall 15% to 28% as Higher Cigarette Taxes Hit Volumes, With FMCG as the Support

ITC Q2 results today, 2 Nov. Brokerages see profit down 15% to 28%, revenue down 3% to 5%, cigarette volume down 8% to 9%. ITC Rs 266.75 at 11:08 AM. P/E 16.5, yield 5.46%.

ITC Q2 results will be announced today, 2 November 2026, and the market expects the cigarette tax impact to dominate. This ITC Q2 results preview sets out what brokerages estimate, why the numbers look weak, what to watch in the FMCG and agri businesses, and how the stock is valued before the announcement.

The stock price is as of 11:08 AM IST on 2 November 2026. The estimates are from brokerage previews reported on the morning of 2 November; the actual results may differ.

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ITC Q2 Results Preview: What Brokerages Expect

Source: Business Standard, Kotak Neo, Whalesbook and Trade Brains previews of 2 November 2026. Estimates differ by brokerage and are not company guidance.

Why Are ITC's Q2 Numbers Expected to Fall?

The ITC Q2 results pressure comes from the cigarette tax. Under the new tax regime, ITC has taken cumulative price hikes of about 32% to 34% over six months, and analysts say these hikes have cut volumes. Because tax is collected on gross sales, reported net revenue falls even where gross revenue rises, and one preview expects cigarette gross revenue to jump about 74% while net sales fall about 20%. Price hikes are aimed at keeping EBIT per stick neutral, but lower volumes still reduce profit.

PL Capital expects limited scope for positive cigarette volume growth over the next two to three quarters because of the tax impact. Motilal Oswal expects volumes to fall 11% in one estimate, against 6% growth a year earlier.

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FMCG, Agri and Hotels: What Could Offset the Drag?

Beyond cigarette volume, analysts expect ITC’s FMCG business to post healthy growth led by volume, which is the main positive. The agri business and hotels (listed separately as ITC Hotels, up 1.94% today at Rs 170.41) are the other segments to watch. EBITDA margin and raw material trends and rural versus urban demand are the key monitorables listed in the previews.

ITC Share Price and Valuation Before Results

The ITC share price was Rs 266.75 at 11:08 AM IST, up 0.43%. At this price ITC has a market cap of about Rs 3.33 lakh crore, a P/E of about 16.5 against an industry P/E of about 33, a return on equity of 28.53%, almost no debt (debt to equity 0.03) and a dividend yield of 5.46%. The low P/E reflects the market’s worry about the cigarette segment, so the key question is whether volumes stabilise.

What to Watch When ITC Announces Results

For the ITC Q2 results, look at five points: cigarette volume and the pace of recovery, the size of any price increase, FMCG margins, whether the agri and hotels businesses offset the drag, and any interim dividend. Management commentary on market share and non-cigarette growth will matter more than the headline profit for the stock’s direction.

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Conclusion

The ITC Q2 results are expected to be weak on cigarette taxes, with profit seen down 15% to 28%, but this is already widely discussed, and the stock trades at a P/E of about 16.5 with a 5.46% yield. The reaction will depend on volume commentary and FMCG momentum more than on the profit decline itself.

Frequently Asked Questions on ITC Q2 Results

When will ITC announce Q2 FY27 results?

Ans. ITC is scheduled to announce its Q2 FY27 results today, 2 November 2026. The company usually files its results with the exchanges, so check NSE or BSE for the exact time. This article is a preview based on brokerage estimates, and the actual numbers may differ from the estimates.

What do brokerages expect from ITC Q2 profit?

Ans. Brokerages expect ITC's consolidated profit to fall between 15% and 28% year-on-year in Q2 FY27. Consolidated revenue is expected to fall about 3% to 5%, and consolidated EBITDA about 20%. The decline is attributed to higher cigarette taxes and lower cigarette volumes, partly offset by FMCG growth.

Why will ITC's cigarette volumes fall?

Ans. ITC has raised prices by about 32% to 34% cumulatively over six months to absorb a new tax regime, and analysts say these increases are reducing volumes. Estimates are for a fall of 8% to 9%, with one at 11%, against growth in the year-earlier quarter.

Will ITC's FMCG business grow in Q2?

Ans. Analysts expect the FMCG business to deliver healthy growth led by volume, which should partly cushion the cigarette drag. Margins and raw material costs are the areas to watch. The actual growth rate and margin will be known only when ITC publishes its segment results.

What is the ITC share price today?

Ans. ITC traded at Rs 266.75 on the NSE at 11:08 AM IST on 2 November 2026, up 1.15 rupees or 0.43% from Rs 265.60. The day's range is Rs 266 to Rs 269.30. The market cap is about Rs 3.33 lakh crore and the dividend yield is 5.46%.

Is ITC cheap or expensive on valuation?

Ans. ITC trades at a P/E of about 16.5, against an industry P/E of about 33, with a return on equity of 28.53% and almost no debt. The low P/E reflects concerns about cigarettes. Whether it is attractive depends on how quickly volumes recover and how fast FMCG grows.

Will ITC declare a dividend with Q2 results?

Ans. ITC has paid dividends regularly and its yield is about 5.46%, but any interim dividend is declared by the board only on the results day. Check the exchange filing after the announcement for the amount and record date. Do not assume a payout before it is declared.

How do I use a results preview?

Ans. A preview shows what analysts expect, so the stock often moves on the difference between actual numbers and expectations. Compare the reported figures with the estimates, read management commentary and avoid trading on the headline alone. This is not investment advice, so consult a SEBI-registered advisor.