ITC Q2 net may rise 14% at Rs 2090 cr: Motilal Oswal

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26 Aug, 2025 12:21

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Motilal Oswal has come out with its second quarter (July-September) earnings estimates for the consumer sector. The brokerage house expects ITC to report a 10.5 percent growth quarter-on-quarter (up 13.8 percent Y-o-Y) in net profit at Rs 2,090 crore.

Revenues of ITC are expected to increase by 9.2 percent Q-o-Q (up 12 percent Y-o-Y) to Rs 8,093.8 crore, according to Motilal Oswal.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 10.2 percent Q-o-Q (up 14.4 percent Y-o-Y) to Rs 3075.6 crore.

Motilal Oswal's Report on ITC:

We expect ITC to post 2.5-3 percent volume decline in cigarettes. Traction in 64mm cigarettes is compensating for the decline in the 69mm segment, in our view.

Net sales are likely to grow 12 percent to INR 80.9 billion.

We expect margin expansion of 80bp to 38 percent, led by cigarettes, where ITC has taken 17-18 percent price hike YTD. One more round of price hike is likely in Gold Flake Premium and Gold Flake.

Non-Cigarette FMCG sales growth would moderate to 17-18 percent. We build in EBIT loss of INR 120 million.

We estimate 13.8 percent PAT growth to INR 20.9 billion.

The stock trades at 27.4x FY15E EPS of INR 12.7.

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