ITC shares dropped to a 52-week low of ₹273.05 on August 17, 2026, after a 16.2% decline in Q1 profit. The company is facing margin pressure from excise duty hikes and rising input costs. Investors are tracking a shift in shareholding patterns as foreign institutional investors reduce their exposure while retail investors increase theirs.
ITC shares declined to a new 52-week low of ₹273.05 on August 17, 2026, continuing a downward trend for the stock. This movement follows a period of underperformance where shares have faced consistent selling pressure. The recent price action reflects investor concerns following the company's financial results for the quarter ending June 30, 2026.
In its Q1 FY27 earnings report, ITC posted a consolidated net profit of ₹4,394.13 crore, representing a 16.2% decline compared to the same period last year. Interestingly, the company’s revenue from operations rose by 27.6% to ₹29,523.30 crore during the same quarter. This contrast between rising revenue and falling profit highlights a squeeze on profit margins. The company has been managing higher costs for raw materials, such as palm oil and fuel, while also absorbing the impact of excise duty hikes on its core cigarette business.
The cigarette segment, which remains a primary contributor to ITC's earnings, has faced challenges due to increased taxation. Analysts have pointed out that while the company has attempted to pass on some of these costs through strategic pricing and the launch of new products, the effort has been difficult given the competition from illicit cigarettes. Management has also cited global uncertainties, including the West Asia conflict, which have created volatility in commodity prices and impacted supply chains.
Shareholding patterns have also shifted over the past year. Foreign Portfolio Investors (FPIs) have reduced their stake in ITC for four consecutive quarters, decreasing their holdings to 11.3% in the June 2026 quarter from 15.04% in June 2025. In contrast, retail investors have steadily increased their interest, with their holdings rising to 13.94% by the end of June 2026, up from 12.39% in December 2024.
Looking ahead, investors are likely to monitor the company's ability to protect its profit margins in the coming quarters. Key areas to watch include the recovery in volume growth for the FMCG and cigarette segments and the impact of input cost inflation on operating margins. The company's progress in mitigating tax-related pressures through its newer business segments, such as fresh foods and value-added agri-products, remains a crucial factor for the long-term outlook.