Brokerages remain divided on ITC after Q1 result; check recommendation

ITC Q1 results review: In Q1, ITC's net profit stood at ₹5,244 crore, up 3 per cent year-on-year (Y-o-Y) from ₹5,091.59 crore a year ago

ITC Q1 results review: Shares of fast-moving consumer goods (FMCG) giant ITC rose 1.5 per cent on Monday, August 4, 2025, after the company released its Q1 results on Friday, after market hours.  At 9:34 AM, ITC share price was trading 0.54 per cent higher at ₹418.75 per share. In comparison, BSE Sensex was up 0.28 per cent at 80,827.27. Post releasing the June quarter results, brokerages were divided as some cut their targets while some raised. 

Should you buy, sell or hold ITC post Q1? 

Nuvama Institutional Equities has retained 'Buy' on ITC and raised the target to ₹540 per share from ₹532. The brokerage is positive on ITC given early trends of urban revival and broad-based growth across segments. Thus, it has made an upward revision in FY26E/27 revenue estimates by 3 per cent/4 per cent, but given margin miss, they have cut FY26E/27E EPS by 2 per cent/2 per cent. 

 

Antique Stock Broking has also raised its target to ₹502 per share from ₹497, while maintaining a 'Buy'. The brokerage is upbeat on the company's growth prospects. 

 

While some brokerages have raised their target, Macquaire has maintained 'Outperform' with a target of ₹500 per share. Analysts see signs of recovery in the FMCg segment, according to reports. 

 

On the other hand, global brokerage Citi has cut its target on ITC to ₹500 per share from ₹520. The brokerage believes margin pressure will remain due to high-cost leaf tobacco in FY26, according to reports. 

 

Motilal Oswal has also decreased its target to ₹500 from ₹515. The brokerage reckons that the FMCG performance was below par in FY25, but with demand recovery, improving trends are expected. It added: If ITC sustains mid-single digit volume growth in cigarettes, and FMCG business sees a recovery in FY26, valuation re-rating is likely.  ALSO READ | Should you stay invested in Tata Power post Q1? Here's what analysts say 

ITC Q1 results

In Q1, ITC's net profit stood at ₹5,244 crore, up 3 per cent year-on-year (Y-o-Y) from ₹5,091.59 crore a year ago. However, profit dropped significantly on a sequential basis from ₹19,727 crore due to an exceptional gain from discontinued operations, specifically related to the demerger of the company’s hotels business, in Q4FY25.

  

The company's revenue from operations grew 20 per cent to ₹23,129.35 crore from ₹19,350.08 crore in Q4 FY25, driven by cigarettes, agri business and other fast-moving consumer goods like notebooks. On a sequential basis, revenue rose 14.63 per cent from ₹20,176.41 crore in the previous quarter.