ITC shares jump 4% as resilient cigarette volumes ease tax-hike fears

Stronger-than-expected volume data suggests consumers are not shifting to illicit alternatives, giving the conglomerate room for further price increases.

By Handelsavisen Newsroom · Automated 2026-08-03 04:59 UTC · 1 min read

Shares of ITC Ltd climbed 4% on Monday, reaching session highs as fresh data indicated resilient demand for its core cigarette business.

The volume strength has alleviated market concerns that recent tax hikes were driving consumers toward illicit alternatives, a key risk factor for the Indian conglomerate.

Analysts noted that the robust volume figures provide ITC with greater scope to implement additional price increases without sacrificing market share.

Analysts noted that the robust volume figures provide ITC with greater scope to implement additional price increases without sacrificing market share.

This development is critical for the company's profitability outlook, as it suggests the brand's pricing power remains intact despite a challenging fiscal environment.

The positive sentiment comes as ITC prepares to report a difficult first quarter for fiscal 2027.

Analysts had previously projected significant headwinds for the conglomerate, driven by margin pressure in both its cigarette and agricultural businesses.