{"id":70151,"date":"2026-04-13T13:57:41","date_gmt":"2026-04-13T08:27:41","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=70151"},"modified":"2026-04-13T13:57:43","modified_gmt":"2026-04-13T08:27:43","slug":"itc-share-price-falls-cigarette-tax-rumours","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/itc-share-price-falls-cigarette-tax-rumours\/","title":{"rendered":"ITC Drops 4.2% on Cigarette Tax Hike Rumours \u2014 Death Tax or India&#8217;s Most Resilient Dividend Machine?"},"content":{"rendered":"<p>ITC \u2014 India&#8217;s most controversial stock because of its cigarette heritage and most beloved stock because of its dividend consistency \u2014 fell 4.2% after a media report suggesting the government is exploring a 15% excise hike on cigarettes in FY27 Budget discussions. The stock, which had been recovering toward Rs 500+, slid back to Rs 390. Every time a cigarette tax hike rumour surfaces, ITC corrects. Every time the Budget is announced, ITC passes through the hike and recovers. The question is whether this time is different.<\/p><p><a href=\"https:\/\/univest.in\/user\/log-in\"><strong>Click Here \u2014 Get Free Investment Predictions on Univest<\/strong><\/a>.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/itc-share-price-falls-cigarette-tax-rumours\/#What_Happened_%E2%80%94_The_Full_Picture\" title=\"What Happened \u2014 The Full Picture\">What Happened \u2014 The Full Picture<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/itc-share-price-falls-cigarette-tax-rumours\/#Why_the_Market_Is_Selling_ITC_Today\" title=\"Why the Market Is Selling ITC Today\">Why the Market Is Selling ITC Today<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/itc-share-price-falls-cigarette-tax-rumours\/#The_Bull_Case_%E2%80%94_Why_the_Sellers_Might_Be_Wrong\" title=\"The Bull Case \u2014 Why the Sellers Might Be Wrong\">The Bull Case \u2014 Why the Sellers Might Be Wrong<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/itc-share-price-falls-cigarette-tax-rumours\/#What_Most_Investors_Are_Missing\" title=\"What Most Investors Are Missing\">What Most Investors Are Missing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/itc-share-price-falls-cigarette-tax-rumours\/#ITC_Share_Price_Levels_Support_2026_Target\" title=\"ITC Share Price: Levels, Support &amp; 2026 Target\">ITC Share Price: Levels, Support &amp; 2026 Target<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/itc-share-price-falls-cigarette-tax-rumours\/#The_Three_Scenarios_Investors_Are_Pricing_In_Right_Now\" title=\"The Three Scenarios Investors Are Pricing In Right Now\">The Three Scenarios Investors Are Pricing In Right Now<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/itc-share-price-falls-cigarette-tax-rumours\/#Key_Business_Segments_What_to_Watch\" title=\"Key Business Segments &amp; What to Watch\">Key Business Segments &amp; What to Watch<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/itc-share-price-falls-cigarette-tax-rumours\/#What_Should_ITC_Shareholders_Do_Today\" title=\"What Should ITC Shareholders Do Today?\">What Should ITC Shareholders Do Today?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/itc-share-price-falls-cigarette-tax-rumours\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/itc-share-price-falls-cigarette-tax-rumours\/#Frequently_Asked_Questions\" title=\"Frequently Asked Questions\">Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/itc-share-price-falls-cigarette-tax-rumours\/#Q_Why_did_ITC_share_price_fall_today\" title=\"Q: Why did ITC share price fall today?\">Q: Why did ITC share price fall today?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/itc-share-price-falls-cigarette-tax-rumours\/#Q_Will_the_cigarette_tax_hike_hurt_ITC_permanently\" title=\"Q: Will the cigarette tax hike hurt ITC permanently?\">Q: Will the cigarette tax hike hurt ITC permanently?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/itc-share-price-falls-cigarette-tax-rumours\/#Q_What_is_ITC_share_price_target_2026\" title=\"Q: What is ITC share price target 2026?\">Q: What is ITC share price target 2026?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/itc-share-price-falls-cigarette-tax-rumours\/#Q_What_is_ITC_Hotels_demerger\" title=\"Q: What is ITC Hotels demerger?\">Q: What is ITC Hotels demerger?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/itc-share-price-falls-cigarette-tax-rumours\/#Q_What_is_ITCs_non-cigarette_FMCG_performance\" title=\"Q: What is ITC&#8217;s non-cigarette FMCG performance?\">Q: What is ITC&#8217;s non-cigarette FMCG performance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/itc-share-price-falls-cigarette-tax-rumours\/#Q_What_is_ITCs_dividend_history\" title=\"Q: What is ITC&#8217;s dividend history?\">Q: What is ITC&#8217;s dividend history?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/univest.in\/blogs-2\/itc-share-price-falls-cigarette-tax-rumours\/#Q_Is_ITC_a_good_dividend_stock\" title=\"Q: Is ITC a good dividend stock?\">Q: Is ITC a good dividend stock?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/univest.in\/blogs-2\/itc-share-price-falls-cigarette-tax-rumours\/#Q_When_is_the_FY27_Union_Budget\" title=\"Q: When is the FY27 Union Budget?\">Q: When is the FY27 Union Budget?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/univest.in\/blogs-2\/itc-share-price-falls-cigarette-tax-rumours\/#Recent_Articles\" title=\"Recent Articles\">Recent Articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Happened_%E2%80%94_The_Full_Picture\"><\/span><strong>What Happened \u2014 The Full Picture<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Parameter<\/strong><\/td><td><strong>Detail<\/strong><\/td><\/tr><tr><td>Trigger<\/td><td>Hindustan Times report citing &#8216;Budget FY27 interim discussions&#8217; on 15% cigarette excise hike<\/td><\/tr><tr><td>ITC Response<\/td><td>No official response to BSE; regulatory requirement if material<\/td><\/tr><tr><td>Historical Pattern<\/td><td>Cigarette excise hiked in 4 of last 10 Budgets; ITC passed through each time<\/td><\/tr><tr><td>Cigarette Volume<\/td><td>ITC Q4 FY26 cigarette volumes: +5% YoY \u2014 healthy<\/td><\/tr><tr><td>Non-Cigarette FMCG<\/td><td>Rs 6,800 Cr quarterly revenue \u2014 growing 12% YoY<\/td><\/tr><tr><td>Dividend History<\/td><td>Rs 7.50\/share in FY26; consistent dividend grower for 15 years<\/td><\/tr><tr><td>Agri-Business<\/td><td>Strong Q4 wheat and soya procurement season<\/td><\/tr><tr><td>Hotels Segment<\/td><td>ITC Hotels \u2014 one of India&#8217;s most profitable hotel chains<\/td><\/tr><\/tbody><\/table><\/figure><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_the_Market_Is_Selling_ITC_Today\"><\/span><strong>Why the Market Is Selling ITC Today<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>The ITC share price reaction to cigarette tax rumours is the market&#8217;s most predictable and most exploitable seasonal pattern in Indian equities. A 15% excise hike on cigarettes would increase the tax per cigarette stick by approximately Rs 0.80-1.00. ITC&#8217;s pricing power \u2014 demonstrated consistently over 20 years of excise hikes \u2014 allows it to pass through Rs 1.20-1.50 per stick (the hike plus margin preservation). Volume typically dips 3-5% immediately and recovers within 2-3 quarters as consumers adjust. The fall today is the same market behaviour as every pre-Budget cigarette tax scare since 2008.<\/p><p><a href=\"https:\/\/univest.in\/user\/log-in\"><strong>Tap to Access Best Research Pieces on Univest<\/strong><\/a>.<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Bull_Case_%E2%80%94_Why_the_Sellers_Might_Be_Wrong\"><\/span><strong>The Bull Case \u2014 Why the Sellers Might Be Wrong<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>ITC&#8217;s cigarette business has survived and grown through 15 excise hike cycles. Each hike has been passed through within one quarter. The volume dip has recovered within three quarters every single time. The market treats each excise hike rumour as an existential threat \u2014 but ITC&#8217;s cigarette EBIT margin has expanded from 65% to 72% over the past decade, even with multiple excise hikes. The non-cigarette FMCG portfolio (Aashirvaad, Sunfeast, Yippee, Bingo) is growing at 12% \u2014 on track to generate Rs 35,000 crore in annual revenue by FY28. ITC Hotels&#8217; demerger, if completed, would unlock Rs 40,000-50,000 crore in standalone value. The Rs 7.50+ annual dividend on a Rs 390 stock is a 1.9% yield \u2014 the highest among India&#8217;s large-cap FMCG companies.<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Most_Investors_Are_Missing\"><\/span><strong>What Most Investors Are Missing<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>The &#8216;death tax&#8217; narrative misses the operational reality. Every cigarette excise hike in India has resulted in illegal cigarette and bidi consumption increasing in rural markets \u2014 which ITC doesn&#8217;t participate in. Legal cigarette consumption (ITC&#8217;s market) has been remarkably sticky because urban and semi-urban smokers prefer the legal product for consistency and safety. ITC&#8217;s market share in legal cigarettes is 75%+. There is no Hindustan Unilever or Dabur competing with ITC in this category.<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"ITC_Share_Price_Levels_Support_2026_Target\"><\/span><strong>ITC Share Price: Levels, Support &amp; 2026 Target<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Parameter<\/strong><\/td><td><strong>Value<\/strong><\/td><\/tr><tr><td>Parameter<\/td><td>Value<\/td><\/tr><tr><td>CMP (April 2026)<\/td><td>Rs 390<\/td><\/tr><tr><td>52-Week High<\/td><td>Rs 530<\/td><\/tr><tr><td>52-Week Low<\/td><td>Rs 375<\/td><\/tr><tr><td>YTD Decline<\/td><td>from peak 26%<\/td><\/tr><tr><td>Market Cap<\/td><td>Rs 4.9L Cr<\/td><\/tr><tr><td>Trailing P\/E<\/td><td>25x<\/td><\/tr><tr><td>Dividend Yield<\/td><td>~1.9%<\/td><\/tr><tr><td>12M Analyst Target<\/td><td>Rs 480\u2013540<\/td><\/tr><tr><td>Short-Term Support<\/td><td>Rs 375\u2013390<\/td><\/tr><tr><td>NSE Symbol<\/td><td>ITC<\/td><\/tr><\/tbody><\/table><\/figure><p>Download the <a href=\"http:\/\/apps.apple.com\/in\/app\/univest-stocks-investment\/id6443753518\" rel=\"nofollow noopener\" target=\"_blank\">Univest iOS App<\/a> or <a href=\"http:\/\/play.google.com\/store\/apps\/details?id=com.univest.capp&amp;hl=en_IN\" rel=\"nofollow noopener\" target=\"_blank\">Univest Android App<\/a> to track ITC live with SEBI-registered research alerts.<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Three_Scenarios_Investors_Are_Pricing_In_Right_Now\"><\/span><strong>The Three Scenarios Investors Are Pricing In Right Now<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Scenario<\/strong><\/td><td><strong>Probability<\/strong><\/td><td><strong>Price Implication<\/strong><\/td><\/tr><tr><td>No cigarette excise hike in FY27 Budget; rumours false<\/td><td>Medium<\/td><td>Rs 450\u2013480 recovery; tax overhang lifts<\/td><\/tr><tr><td>15% excise hike implemented; ITC passes through in 1 quarter<\/td><td>Medium-High<\/td><td>Short-term dip to Rs 365\u2013375; recovery to Rs 420+ within 2 quarters<\/td><\/tr><tr><td>Hotels demerger announced alongside results<\/td><td>Low-Medium<\/td><td>Rs 480\u2013520 on SOTP re-rating<\/td><\/tr><\/tbody><\/table><\/figure><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Business_Segments_What_to_Watch\"><\/span><strong>Key Business Segments &amp; What to Watch<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Business<\/strong><\/td><td><strong>Revenue (Annual Est.)<\/strong><\/td><td><strong>EBIT Margin<\/strong><\/td><\/tr><tr><td>Cigarettes<\/td><td>Rs 30,000 Cr<\/td><td>72% \u2014 extraordinarily high<\/td><\/tr><tr><td>Non-Cigarette FMCG<\/td><td>Rs 27,000 Cr<\/td><td>8\u201310% \u2014 growing<\/td><\/tr><tr><td>Agri-Business<\/td><td>Rs 28,000 Cr<\/td><td>5\u20137%<\/td><\/tr><tr><td>Hotels<\/td><td>Rs 3,500 Cr<\/td><td>32% \u2014 among India&#8217;s best<\/td><\/tr><tr><td>Paperboards &amp; IT<\/td><td>Rs 8,000 Cr<\/td><td>15\u201318%<\/td><\/tr><\/tbody><\/table><\/figure><p>Track ITC and sector peers live on the <a href=\"https:\/\/univest.in\/screeners\"><strong>Univest Screener<\/strong><\/a> \u2014 real-time fundamentals, FII\/DII flows, and analyst ratings.<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Should_ITC_Shareholders_Do_Today\"><\/span>What Should ITC Shareholders Do Today?<span class=\"ez-toc-section-end\"><\/span><\/h2><p>ITC at Rs 390 \u2014 approaching its 52-week low of Rs 375 \u2014 is an income investor&#8217;s dream and a growth investor&#8217;s puzzle. The cigarette business is a perpetual cash machine at 72% EBIT margin. The non-cigarette FMCG business is a genuine growth story. The Hotels demerger is the event-driven catalyst. If you own ITC for dividends and long-term compounding, the excise hike rumour correction is historically the best time to add. Define your holding period before acting.<\/p><p><a href=\"https:\/\/univest.in\/user\/log-in\"><strong>Subscribe to Univest Pro for SEBI-registered analyst recommendations on ITC \u2014 with entry, stop-loss, and target.<\/strong><\/a><\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>ITC&#8217;s 4.2% fall on cigarette tax rumours is the most predictable overreaction in the Indian market. Seventeen consecutive excise hike cycles. Seventeen consecutive price pass-throughs. The cigarette EBIT margin expanded despite every hike. The non-cigarette FMCG business crosses Rs 35,000 crore by FY28. Hotels demerger is a structural value unlock. At Rs 390, ITC is offering a 1.9% dividend yield with a 23% upside to analyst consensus target. Rs 375 is the support floor.<\/p><p>This article is for informational purposes only. Please conduct your own research and consult a SEBI-registered financial advisor before making any investment decisions.<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><strong>Frequently Asked Questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q_Why_did_ITC_share_price_fall_today\"><\/span>Q: Why did ITC share price fall today?<span class=\"ez-toc-section-end\"><\/span><\/h3><p>ITC fell 4.2% following a media report suggesting the government is exploring a 15% cigarette excise hike in FY27 Budget discussions. ITC&#8217;s cigarette business generates 60%+ of profits. Any excise increase creates short-term volume concern and is the trigger for ITC&#8217;s well-established correction-recovery cycle.<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q_Will_the_cigarette_tax_hike_hurt_ITC_permanently\"><\/span><strong>Q: Will the cigarette tax hike hurt ITC permanently?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>Historically, no. ITC has navigated 17+ excise hike cycles over 20 years and passed through each one within a quarter while maintaining or expanding EBIT margins. Volume dips 3-5% post each hike and recovers within 3 quarters. The legal cigarette market&#8217;s resilience reflects urban consumer stickiness to branded products.<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q_What_is_ITC_share_price_target_2026\"><\/span><strong>Q: What is ITC share price target 2026?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>Analyst consensus 12-month ITC target is Rs 480\u2013540. The stock trades at Rs 390, implying 23\u201338% upside. Key catalysts: FY27 Budget without cigarette excise hike, Hotels demerger, and non-cigarette FMCG crossing Rs 30,000 crore annual revenue. These are analyst estimates.<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q_What_is_ITC_Hotels_demerger\"><\/span>Q: What is ITC Hotels demerger?<span class=\"ez-toc-section-end\"><\/span><\/h3><p>ITC has been evaluating the demerger of its hotel business (ITC Hotels) into a separately listed entity. ITC Hotels has 115+ hotels under the ITC, WelcomHotel, and Fortune brands with 30%+ EBITDA margins. The demerger, if completed, could unlock Rs 40,000\u201350,000 crore in value for ITC shareholders through a separate listing.<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q_What_is_ITCs_non-cigarette_FMCG_performance\"><\/span><strong>Q: What is ITC&#8217;s non-cigarette FMCG performance?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>ITC&#8217;s non-cigarette FMCG segment \u2014 covering Aashirvaad atta, Sunfeast biscuits, Yippee noodles, Bingo chips, and personal care \u2014 generated approximately Rs 6,800 crore in Q4 FY26, growing 12% YoY. This segment is on track to reach Rs 35,000 crore in annual revenue by FY28.<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q_What_is_ITCs_dividend_history\"><\/span><strong>Q: What is ITC&#8217;s dividend history?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>ITC has paid Rs 7.50 per share in FY26, continuing its 15+ year dividend growth track record. At Rs 390, the dividend yield is approximately 1.9% \u2014 the highest among India&#8217;s large-cap FMCG companies. ITC has never cut its dividend, even in COVID years.<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q_Is_ITC_a_good_dividend_stock\"><\/span><strong>Q: Is ITC a good dividend stock?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>This article is for informational purposes only. ITC&#8217;s dividend consistency, 72% EBIT cigarette margin, and growing FMCG portfolio make it a frequently cited income stock. At Rs 390 and 1.9% yield, it compares favourably to fixed income alternatives for equity investors seeking income. Consult a SEBI-registered advisor before investing.<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q_When_is_the_FY27_Union_Budget\"><\/span><strong>Q: When is the FY27 Union Budget?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>India&#8217;s FY27 (2027-28) Full Union Budget will be presented in February 2027. The current FY27 (2026-27) full Budget was presented in February 2026. Any cigarette excise revision would be announced in the annual Budget. The interim Budget\/Vote on Account process does not typically include excise structure changes.<\/p><p><strong>Disclaimer: <\/strong>Investments in securities are subject to market risk. This content is for educational purposes only and does not constitute investment advice. Consult a SEBI-registered financial advisor before making any investment decisions.<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Recent_Articles\"><\/span><strong>Recent Articles<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p><a href=\"https:\/\/univest.in\/blogs\/why-is-krbl-share-price-falling\"><strong>Why is KRBL Share Price Falling? Check Next Share Price Target&nbsp;<\/strong><\/a><\/p><p><a href=\"https:\/\/univest.in\/blogs\/why-is-reliance-infrastructures-share-price-falling\"><strong>Why is Reliance Infrastructures Share Price Falling? Check Next Share Price Target&nbsp;<\/strong><\/a><\/p><p><a href=\"https:\/\/univest.in\/blogs\/why-is-mahanagar-gas-share-price-falling\"><strong>Why is Mahanagar Gas Share Price Falling? Check Next Share Price Target&nbsp;<\/strong><\/a><\/p><p><a href=\"https:\/\/univest.in\/blogs\/why-is-happiest-minds-share-price-falling\"><strong>Why is Happiest Minds Share Price Falling? Check Next Share Price Target&nbsp;<\/strong><\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>ITC \u2014 India&#8217;s most controversial stock because of its cigarette heritage and most beloved stock because of its dividend consistency \u2014 fell 4.2% after a media report suggesting the government is exploring a 15% excise hike on cigarettes in FY27 Budget discussions. 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