ITC Ltd shares declined in Monday’s trading session, reflecting continued pressure on the stock that has been underperforming the broader market over the past year. The stock was trading at ₹291.25 on the NSE, down ₹8.70 or 2.92% for the day, extending its weak momentum in FY2026. The cigarette-to-FMCG major has been among the biggest laggards in the benchmark indices, with data from ACE Equity showing that the stock has fallen nearly 27% in FY2026 so far, compared with about a 4% decline in the BSE Sensex during the same period. Over the past six months alone, the stock has slipped ₹111.95 or about 27.77%, highlighting the extent of the correction.
Several factors have weighed on investor sentiment toward ITC. The increase in additional excise duty on cigarettes, muted performance in the December quarter, target price cuts by brokerages, and rising competition have collectively dampened market confidence. As a result, ITC has emerged as one of the worst-performing constituents of the Nifty 50 in 2026 so far.
The sharp correction comes after the stock previously touched a peak valuation of ₹6.25 lakh crore, when the share price had reached ₹498.85 per share. Since then, the decline in market value has also impacted large institutional investors. Life Insurance Corporation of India (LIC) remains one of the biggest shareholders in ITC, holding a 15.69% stake as of the December quarter, which has seen a significant erosion in value as the stock corrected.
On the financial front, ITC reported consolidated net profit of ₹5,018 crore in Q3FY26, largely unchanged from ₹5,013 crore in the same period last year. The profit performance was affected by higher raw material costs and a one-time charge of ₹354.58 crore linked to the implementation of India’s new labour codes.
Despite the pressure on profitability, the company reported steady revenue growth. Consolidated revenue from operations stood at ₹21,706 crore, registering a 6.7% year-on-year increase from ₹20,349 crore. At the operating level, EBITDA rose 8.17% YoY to ₹6,882 crore, compared with ₹6,362 crore a year earlier, while operating margins improved by 50 basis points to 31.7%.However, with concerns around regulatory pressures on cigarettes and cautious outlook from brokerages, ITC’s share price continues to face selling pressure, keeping the stock under the spotlight in today’s market session.