ITC share price down by more than 1% today

ITC share price is down by more than 1% today. At 2:30 p.m. IST, 17^th September, 2025, the stock price is down by 1.09%, trading at Rs 408.60. Nifty 50 index is up by 0.22% at this time. In the past 5 days, ITC’s share has lost 1.40%. In the past one month its stock has gained 0.57%. Year-to-date (YTD) in 2025, the stock has lost 15.57%.

Earlier this year, in February, the company had demerged its hotels business into a separate listed company. This demerger also had some impact on its stock price this year.

New GST structure does not reduce taxation on cigarettes

Lower GST rates that will come into force from September, 22^nd will make some of the FMCG goods of ITC cheaper and may benefit them. But cigarettes will continue to be taxed at the existing 28% plus compensation cess until the GST compensation loans due to state governments by the central government are paid off. After that cigarettes will move into the new 40% sin tax bracket. That will make cigarettes more expensive. This has dampened sentiments regarding ITC’s stock.

ITC is still heavily reliant on its cigarette business for revenue and profitability. In FY 25, the cigarette business contributed around 44% to the total revenue of the company. Its contribution to profit before interest and taxes was even higher at around 70%.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: NSE