Despite a jubilant mood on Dalal Street after announcement that India and US have reached a long-pending trade deal, ITC shares are trading flat today. Shares of cigarettes to FMCG major are were flat at Rs 314.90. Shares of ITC have fallen sharply in recent months, from Rs 400 levels due to higher tax levy on cigarettes that came into effect from February 1.
Fund manager Gurmeet Chadha, the Managing Partner & CIO at Compcircle, in a tweet said: "Utho ITC.. ab toh India US trade deal bhi ho gayee.. :)" Along with his post, he shared a picture from Mughal-e-Azam. The scene shows Prince Salim, played by Dilip Kumar, gently leaning over Anarkali, portrayed by Madhubala, who appears to be asleep. What was once a tender and romantic moment between the two lovers has now turned into one of the internet’s favourite meme templates.
The still from the 63-year-old film keeps popping up on social media, cleverly reworked to show the daily struggles, trending news and even social commentary. What began as a heart-breaking love story on screen has now found a humorous afterlife.
When K. Asif released Mughal-e-Azam in 1960, it was clear that Hindi cinema had just witnessed something special. With its massive sets, unforgettable dialogues and powerful performances by Dilip Kumar, Madhubala and Prithviraj Kapoor, the film went on to become a timeless classic. Decades later, while the epic movie still impresses fans, one particular scene from the film has taken on a completely new life online, as meme material.
Earlier this year, the Indian government tightened the tax screw on cigarettes, announcing a fresh excise duty that came into effect on February 1. The new levy ranges from Rs 2,050 to Rs 8,500 per thousand sticks, depending on the length of the cigarette. In December, the government also passed the Central Excise (Amendment) Bill, 2025, replacing the earlier temporary charge on cigarettes and other tobacco products with a permanent framework.
This excise duty is over and above the existing 40% Goods and Services Tax, significantly increasing the overall tax burden on cigarettes. As a result, taxes now account for nearly 53% of the retail price of cigarettes in India, making the segment one of the most heavily taxed consumer categories in the country.
Against this challenging backdrop, ITC reported a decline in profitability for the third quarter. The diversified consumer goods major posted a 10% year-on-year fall in standalone net profit, which slipped to Rs 5,089 crore for the quarter ended December 31, compared with Rs 5,638 crore in the same period last year. The drop was driven by rising input costs and a one-time expense linked to India’s new labour codes.
ITC incurred a one-off charge of Rs 274 crore related to the implementation of the new labour laws. The reforms, which mark the biggest overhaul of labour regulations in decades, have impacted corporate earnings across sectors.
The company’s total expenses rose 5% to Rs 13,472 crore, partly due to higher prices of key raw materials, including edible oil, wheat and leaf tobacco. Tobacco prices have climbed in recent quarters amid improving export demand, squeezing margins even as cigarette volumes remained stable.
Despite the pressure, ITC’s cigarettes business recorded an 8% revenue growth in the quarter, while its FMCG segment—home to brands like Aashirvaad, Sunfeast and Yippee—grew 11%. Overall revenue increased 6% to Rs 19,359 crore.
Source Name : Economic Times