Diversified conglomerate ITC will announce its first-quarter results on July 31, 2026. The FMCG major is expected to report weak quarterly earnings as poor performance by the cigarettes business could weigh on total sales and profitability.
According to experts, ITC could report a 7% to 10% YoY fall in consolidated net sales in the range of ₹20,250 to ₹19,500 crore as revenue from the cigarette business is expected to see double-digit fall due to steep tax hikes on cigarettes. Meanwhile, the agri business could also face pressure due to supply chain disruptions after the US-Iran conflict. ITC reported consolidated revenue of ₹21,495 crore in the same quarter of last year, while it was ₹17,825 crore in the previous quarter.
Meanwhile, ITC net profit could decline by 10 to 12% YoY in the range of ₹4,700 to ₹4,610 crore as steep tax hikes on cigarettes could weigh on volumes and margins. The company registered net profit of ₹5,244 crore in Q1FY26 and ₹5,388 crore in the previous quarter.
During the quarterly result announcement, investors will closely monitor revenue and volume growth across different business segments like FMCG, cigarettes and agribusiness. Demand outlook in the urban and rural region along with overall consumption trend will also be tracked.
Ahead of the Q1 result announcement, ITC shares closed 0.4% lower at ₹285. So far this year, ITC shares are trading flat, down 0.6%.
Technical analysis
ITC is showing signs of recovery after forming a strong base near ₹275. The stock is currently trading around ₹285 and has moved above the 20-day EMA, while the 50-day EMA remains the immediate hurdle. RSI around 51 indicates improving but still neutral momentum. A sustained close above ₹288–290 could strengthen the recovery and push the stock towards ₹300.
On the downside, ₹280 is the immediate support, followed by the crucial ₹275 level. As long as ₹275 holds, the stock may continue consolidating with a mild positive bias. A breakdown below ₹275 could weaken the structure.
Options outlook
ITC's at-the-money (ATM) strike price for 25 August expiry is 286, with both call and put options priced at ₹13. This implies that traders are anticipating a price movement of approximately ±4.5%. Before planning options strategies, let's examine ITC’s historical price behaviour during past earnings announcements.
Options strategies for ITC
With the options market implying a potential move of about ±4.5% by 25 August, traders may wish to consider straddle strategies in order to capitalise on their expectations of volatility.
A long straddle involves buying an at-the-money (ATM) call and put option of ITC with the same strike price and expiry date. This strategy is beneficial if the stock price moves sharply — up or down — beyond the implied range of ±4.5%, as gains on one option will outweigh losses on the other.
Conversely, if you expect ITC to remain within a tight range and the actual movement to stay below the implied range by expiry, you may consider a short straddle. This involves selling an ATM call and put option with the same strike price and expiry date. Profits are made from time decay and a drop in volatility, provided the stock remains within a certain range.
Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop-losses. We do not recommend any particular stock, securities, or trading strategies. The securities quoted are exemplary and not recommendatory. The stock names mentioned in this article are purely to show how to do an analysis.