ITC share price: Should you buy, sell, or hold the FMCG giant’s stock after Q3 results? Explained

ITC Q3 Results: ITC announced its October-December quarter results for fiscal 2024-25 (Q3FY25) on Thursday, February 6. The company reported a drop of 7.27 per cent in consolidated net profit to ₹5,013.16 crore due to subdued demand and a sharp escalation in input costs, compared to ₹5,406.52 crore in the corresponding period last year.

The tobacco-to-hotels conglomerate's revenue from operations rose 9.05 per cent to ₹20,349.96 crore in the third quarter of FY25, compared to ₹18,660.37 crore in the year-ago period. The fast-moving consumer goods (FMCG) leader fixed an interim dividend of ₹6.50 per share of Re 1 each, and the record date for determining members entitled to the dividend is February 12, 2025.

Also Read: ITC dividend: FMCG giant declares second dividend of ₹6.50 for FY25; Record date fixed on THIS day

ITC Q3 Results

ITC had a "resilient performance amidst a subdued demand environment & sharp escalation in input costs". The Kolkata-headquartered company added that key input materials such as edible oil, wheat, potato, leaf tobacco, wood, and packaging witnessed a sharp cost escalation during the quarter.

In the December quarter, revenue from the gross sale of ITC products and services was ₹20,140.15 crore, up 8.74 per cent. ITC's total expenses were 12.18 per cent higher during the December quarter, to ₹14,413.66 crore. 

ITC also announced that it will acquire Prasuma and Meatigo, expanding its presence in frozen, chilled, and ready-to-cook foods. ITC has signed definitive agreements to acquire Prasuma, a leading player in the frozen food space in India. Over three years, ITC will acquire a 100 per cent stake in the Gurugram-headquartered company.

ITC's revenue from the 'total FMCG' segment, including the cigarettes business, was up 6.35 per cent to ₹14,372.53 crore. It was ₹13,513.43 crore in the corresponding September quarter. Revenue from the cigarette business was up 7.83 per cent to ₹8,944.83 crore during the December quarter, compared to ₹8,295.18 crore in the year-ago period.

Also Read: ITC Q2 Results: Net profit rises 3% to ₹5,078 crore, revenue up 17% YoY; 5 key highlights

Revenue from other segments, including information technology services, branded residences, etc., was up 14.25 per cent to ₹1,121.33 crore, compared to ₹981.4 crore a year earlier. ITC demerged its hotel business into a separate entity, ITC Hotels Ltd. Updating the performance of the demerged business, ITC said it also had its "best-ever quarterly performance", with revenue growing 14.6 per cent to ₹922 crore.

ITC Q3 results review

Decoding the ITC Q3 results 2025, Nitin Gupta, Senior Research Analyst at Emkay Global Financial Services, said, “Inflationary stress continues to have a bearing on ITC’s earnings delivery, while the topline show was better. We remain hopeful of an improved topline and expect the margin stress to ease from FY26E, likely leading to a resumption of the double-digit earnings growth trajectory. As of this report, we removed the hotel's business projection and factored in ITC’s stake as an investment with a 20% Holdco discount.”

“The new SOTP-based Dec-25E TP is Rs490, at a 6% cut. We continue to value the cigarette business at 20x P/E, given a favourable regulatory stance (focus on containing illegal volumes). Other FMCG is now valued at 6x sales, Agri at 2x sales, and the Paper business at 5x EBITDA. Q3 delivery was muted, with some positives – 6% cigarette volume and 4% Other FMCG revenue growth. Q3 topline grew 8%, while EBIT grew 1%.,” the Emkay expert concluded.

ITC Q3 Results: Should you buy, sell, or hold the stock tomorrow?

According to Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, ITC's share price has made strong support at ₹420 and is looking positive on the technical chart. ITC shareholders can hold the scrip, maintaining a stop loss of ₹420 for the near-term target of ₹465 apiece. 

“Once the ITC stock breaks above ₹465 on a closing basis, it may soon touch the ₹485 per share mark. So, fresh investors can initiate momentum buying at the current market price and maintain buy-on-dips as ₹420 support may remain sacrosanct in the near term,” said Dongre of Anand Rathi.

Also Read: Budget 2025: ITC to HUL- FMCG, consumer durables stocks surge after FM announces income tax relief

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.