ITC shares trade higher ahead of Q4 results despite margin fears; here's what investors should know

The Kolkata-based cigarette maker’s revenues from its core cigarette sales business and margins are expected to be impacted in Q4 results due to the goods and services tax (GST) hike to a blanket rate of 40%, from its earlier 28% levels from February 2026.

The central government’s Central Board of Indirect Taxes and Customs implemented these GST hikes after the recommendations from the GST Council, as cigarettes are products falling under the sin goods category.

As of 10:29 am, ITC shares were trading 0.46% higher at ₹308.95 on Thursday, compared with ₹307.55 at the previous stock market close, according to NSE data. The company’s shares surged to an intraday high of ₹310.15 during the early trade.

Along with the Q4 results for the financial year ended 2025-26, the company will also recommend a final dividend for shareholders, subject to member approval.

Market experts predict that ITC is expected to record healthy growth, but the company’s cigarettes business is likely to be impacted, resulting in overall flat revenue growth in the March quarter. The demand trend will also be in focus of investors along with the margin concerns.

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In an exchange filing on May 19, ITC acquired the personal care brand Mother Sparsh Baby Care Pvt. Ltd, via a secondary share purchase from existing shareholders of the company for a sum of ₹30 crore in exchange for 1,681 equity shares.

After the acquisition, ITC’s shareholding in Mother Sparsh will increase to 49.32%, from 39.47% on a fully diluted basis.

ITC Q3 results snapshot

ITC’s consolidated net profits (attributable to the owners) dropped marginally to ₹4,931 crore in the third quarter of the year ended 2025-26, compared year-on-year with ₹4,935 crore in the same period a year ago, as per the NSE filings.

While the company’s core revenue from operations rose 6.6% to ₹21,706 crore in the December quarter, compared to ₹20,349 crore in the same period a year ago, as per the exchange filings.

Both the company’s FMCG sales from cigarettes and other revenues rose, in turn fuelled the overall revenue from core operations in the October to December quarter in the financial year ended 2025-26.

Other than the FMCG revenues, ITC’s agri business, paperboards, paper & packing, dropped in the period under review. So far, the company has announced a ₹6.50 per share interim dividend after its December quarter results, as per NSE data.

ITC share price trend

ITC shares have delivered more than 47% returns in the last five years, but the company’s stock has lost 26% in the last three years, and 28% in the past one-year period, according to NSE data.

So far in 2026, ITC share price has lost 15% year-to-date, and has been flat in the past one-month period. The company’s stock was trading 0.55% higher in the last five market sessions on the Indian stock market.

The shares surged to a 52-week high of ₹444.20 on May 27, 2025, while the 52-week low was at ₹287 on March 30, 2026, as per the exchange data. The company’s market capitalisation (m-cap) was at over ₹3.86 lakh crore as of Thursday’s trading session.