ITC Share Price Declines 2%, Hits Lowest Level Since August 2022, Market Capitalization Falls Below ₹3.75 Lakh Crore

ITC Shares Extend Losses for Third Consecutive Day

On Thursday, March 19, ITC shares declined by 2% to reach a day's low of ₹298.55 apiece. This marks the third straight day of losses for the diversified conglomerate. The stock's decline has taken its fall to 4.5% in March and a sharp 25.66% on a year-to-date basis.

The company's weak trend has continued into 2026, with a 21% decline in January and a subsequent 3% drop in February. The additional excise duty on cigarette prices, coupled with muted performance in the December quarter and target price cuts by brokerages, has dented investor sentiment. As a result, the stock has become one of the worst performers among Nifty 50 constituents in 2026 so far.

ITC implemented a price hike on cigarettes, but analysts believe this falls short of the roughly 35% increase needed to fully offset the tax hike. This is expected to weigh on cigarette EBIT in the near term. The sustained decline has not only impacted the Nifty 50's performance but has also wiped out ₹1,30,178 crore in market capitalisation in less than three months. The company's market capitalisation has decreased to ₹3.75 lakh crore, based on today's low.

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At its peak, ITC was valued at ₹6,25,144 crore. The stock is now trading 40% below its record high and 26% lower than its 2026 high of ₹402.70 apiece. LIC, one of the largest shareholders in ITC, has seen significant wealth erosion due to the company's decline.

Q3 FY26 Results

ITC posted a consolidated net profit of ₹5,018 crore in Q3 FY26, largely unchanged from ₹5,013 crore in the same period last year. The net profit was impacted by a rise in raw material costs and a one-time charge of ₹354.58 crore related to the country's new labour codes. The company's consolidated revenue from operations stood at ₹21,706 crore, up 6.7% YoY from ₹20,349 crore reported in the June 2024 quarter. At the operating level, ITC posted an EBITDA of ₹6,882 crore, marking an 8.17% YoY growth from ₹6,362 crore, while margins have improved by 50 basis points to 31.7%.