{"id":287571,"date":"2026-10-05T15:44:18","date_gmt":"2026-10-05T10:14:18","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=287571"},"modified":"2026-10-05T15:44:18","modified_gmt":"2026-10-05T10:14:18","slug":"cigarette-stocks-q2-preview-itc-godfrey-phillips-vst","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/cigarette-stocks-q2-preview-itc-godfrey-phillips-vst\/","title":{"rendered":"Cigarette Stocks Q2 Preview: What Analysts Expect From ITC, Godfrey Phillips and VST Industries After the Tax Shock, With Volumes, Margins, Price Hikes and the Citi Upgrade"},"content":{"rendered":"

Q2 FY27 for ITC, Godfrey Phillips, VST: ‘sequentially better but optically ugly’. Q1 profit -27%, -44%, -24%. Citi upgrades ITC to Buy, Rs 300.<\/em><\/p>\n

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Quick Answer<\/strong><\/p>\n

Cigarette stocks face a Q2 FY27 that analysts call sequentially better but optically ugly, because year-on-year numbers remain distorted by the February 2026 tax reset that put cigarettes in a 40% GST slab with extra excise duty. In Q1 FY27, ITC’s standalone profit fell 27%, Godfrey Phillips’ fell 44% and VST Industries’ fell 24%, with excise duty rising 73.5%, about 700% and 421% respectively. Analysts expect price hikes, including ITC’s September increases, to restore realisations, a festive-quarter lift and volumes to stabilise, with ITC volume falling about 6% in FY27, and Citi upgraded ITC to Buy on 5 October with a Rs 300 target. Illicit trade and downtrading remain the key risks to volumes.<\/p>\n<\/p><\/div>\n

Cigarette stocks were in focus on 5 October as ITC rose about 2% to 3% after Citi upgraded it to Buy from Sell and raised its target price to Rs 300 from Rs 257. The upgrade comes ahead of Q2 FY27 results for ITC, Godfrey Phillips and VST Industries, the first full set of quarters after the tax reset has been absorbed into pricing.<\/p>\n

If you are searching for what analysts expect from cigarette stocks in Q2, this article covers the 40% GST and excise duty change, the Q1 FY27 results, the ITC Q2 results outlook, the Godfrey Phillips Q2 and VST Industries Q2 expectations, price hikes, festive support, volume and EBITDA margin expectations, market share, the Citi upgrade, stock performance and the illicit trade and downtrading risks. Data is from company filings and brokerage reports, so confirm it before acting.<\/p>\n

Click Here – Get Free Investment Predictions<\/a><\/strong><\/p>\n

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