ITC Q3 FY26 Results Announcement Scheduled for January 29
The prominent Indian FMCG conglomerate, ITC Limited, is poised to unveil its financial performance for the December quarter of the ongoing fiscal year 2025-26. The company has officially confirmed that its board of directors will convene on Thursday, January 29, 2026, to deliberate and approve the quarterly results.
Board Meeting Agenda and Financial Review
In a recent filing with the Bombay Stock Exchange (BSE), ITC disclosed the comprehensive agenda for the upcoming board meeting. The directors will review and approve both the Unaudited Standalone and Consolidated Financial Results for the quarter and the nine-month period concluding on December 31, 2025. Additionally, the board will assess the segment-wise breakdown encompassing revenue, results, assets, and liabilities. A significant item on the agenda is the potential declaration of an Interim Dividend for the financial year ending March 31, 2026, which could impact shareholder returns.
Analysts' Projections: Tepid Earnings Ahead
Market analysts and brokerage firms are anticipating a lackluster earnings report from ITC for the third quarter, which may lead to a muted reaction in the stock market. According to consensus estimates, the company's revenue is forecasted to witness a growth in the low single digits, reflecting modest top-line expansion. Conversely, the Profit After Tax (PAT) is expected to register a decline, indicating pressure on bottom-line profitability.
Leading financial institutions have provided detailed forecasts:
- Kotak Institutional Equities (KIE) and Nuvama Research predict a year-on-year (YoY) decrease in profit ranging between 5% to 6%. This anticipated drop is attributed to elevated other income recorded in the corresponding quarter of the previous fiscal year, creating a challenging base for comparison.
- Overall revenue growth is projected to be in the range of 6% to 8% YoY, as per analysts' assessments.
Cigarette Segment Performance and Margin Pressures
KIE has provided insights into the performance of ITC's core cigarette business. The brokerage expects cigarette volume and gross sales growth to remain steady and resilient, with estimates of approximately 6% and 6.75% YoY, respectively. However, the Earnings Before Interest and Taxes (EBIT) for the cigarette segment are estimated to grow by around 5% YoY. This growth is accompanied by a contraction in EBIT margins, projected to decline by about 100 basis points year-on-year and 60 basis points quarter-on-quarter.
The margin compression is primarily driven by the consumption of high-cost leaf tobacco and other input materials. Although leaf tobacco prices have moderated in recent quarters, the full benefits of this cost reduction are anticipated to materialize only from the fourth quarter onwards, providing some relief in subsequent periods.
On a broader operational level, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) are likely to increase by approximately 7% YoY, indicating some operational efficiency amidst challenges.
ITC Share Price Trends and Market Performance
Ahead of the quarterly results announcement, ITC's share price has been trading in proximity to its 52-week low of ₹318. During today's trading session, the stock touched a low of ₹318.05, while the high for the day was ₹322.95, reflecting limited upward momentum.
The stock has faced significant headwinds in the current calendar year, with a decline of 12.45% year-to-date. Over a longer horizon, the share price has plummeted by 26% in the past year, underscoring sustained investor concerns and market volatility impacting the FMCG major.
Investors and market participants are advised to monitor this space closely for real-time updates and comprehensive analysis following the official declaration of ITC's Q3 FY26 results on January 29.
