ITC Ltd is poised to report a challenging first quarter for fiscal 2027, with analysts projecting significant headwinds from its core cigarette and agricultural businesses.
The conglomerate faces margin pressure driven by recent excise tax increases on tobacco products, which are expected to weigh heavily on earnings for the April-June period.
While the fast-moving consumer goods (FMCG) division is anticipated to deliver double-digit growth, this positive momentum is likely to be offset by the broader revenue declines in the company's traditional cash cows.
The outlook for ITC comes as the Indian market braces for a mixed earnings season.
Brokerages have flagged structural headwinds across several sectors, with the IT industry also facing a difficult start to the fiscal year.
For ITC, the divergence between its high-growth FMCG arm and the cyclical pressures in its tobacco and agri divisions highlights the complexity of its diversified portfolio.