Highlights

• ITC has received buy ratings from HSBC Global Investment Research, with target prices of ₹510.
• Antique Stockbroking has issued a buy rating on ITC with target prices of ₹500.
• The company reported year-on-year growth in standalone and consolidated financials for the quarter ended 30 September 2025.
• Key business segments such as FMCG, cigarettes, hospitality and IT services contributed to overall quarterly performance.

ITC Limited (NSE: ITC) has drawn positive attention from analysts, with HSBC Global Investment Research issuing a buy rating and assigning a target price of ₹510. Antique Stockbroking has also maintained a buy rating, setting its target price at ₹500. The market continues to track the company’s financial trajectory following the latest quarterly results released on October 30, 2025.

Standalone Performance Shows Steady Growth

For the quarter ended 30 September 2025, ITC reported standalone gross revenue of ₹19,148 crore, marking a 7.1% year-on-year rise excluding the Agri Business segment. The company posted an overall EBITDA increase of 2.1% year-on-year, while EBITDA margin stood at 35.1%, reflecting an improvement of 185 basis points. Profit after tax rose 4.1% compared to the same period last year.

Growth in the cigarettes and FMCG businesses supported the quarterly performance. The company continued to expand its portfolio in differentiated offerings, with premium products contributing to segment momentum.

Consolidated Results Supported by Group Companies

On a consolidated basis, the company delivered higher gross revenue, posting a 7.9% year-on-year increase excluding the Agri Business. EBITDA improved by 2.2% over the previous year. Subsidiaries, including ITC Infotech India Limited and ITC Hotels Limited, contributed positively during the quarter.

Surya Nepal Private Limited also delivered stable performance despite disruptions experienced in parts of Nepal during September 2025.

FMCG Segment Maintains Revenue Momentum

The FMCG – Others segment recorded an 8% year-on-year increase in revenue (excluding notebooks). Consumer demand in categories such as staples, dairy, premium personal wash and agarbattis supported the overall performance. Digital-first and organic portfolios also continued to grow, with annual recurring revenue estimated at around ₹1,100 crore.

The segment reported an EBITDA margin of 10%. Commodity prices remained at elevated levels, and the company continued to manage pricing, volume and value within the portfolio.

Cigarettes and Agri Business Add to Quarterly Activity

The cigarettes segment recorded a 6.8% increase in net revenue compared to last year, supported by broader portfolio initiatives. The Agri Business reflected timing differences and a high base effect during the quarter, though the first half of the year showed revenue up 7% and segment results up 10%.

Value-added agri exports were moderate amid delayed call-offs in global markets.

Paper Segment Records Sequential Improvement

The paper segment delivered sequential improvement, with profit rising 17% and margins increasing by 90 basis points quarter-on-quarter. Revenue grew 5% year-on-year, driven by higher volumes. Market conditions continued to be influenced by low-priced imports and elevated wood prices, though early signs of price moderation emerged.

Policy-related measures, including the Minimum Import Price on Virgin Multi-layer Paperboard and the recommendation of anti-dumping duties on select origins, framed the operating environment. The company continued to undertake initiatives to enhance wood availability through accelerated plantations and technology-enabled monitoring.

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