ITC Ltd.'s cigarette business delivered a sharp jump in revenue during the first quarter of FY27, but the growth failed to translate into higher profitability as segment earnings came under pressure.
According to the company's exchange filing on Friday, cigarette revenue surged 81% year-on-year to Rs 15,383 crore. However, earnings before interest and tax (EBIT) from the segment declined 35% to Rs 3,341 crore, indicating margin pressure despite the robust topline performance.
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At the consolidated level, ITC reported a 27.1% year-on-year decline in net profit to Rs 3,579 crore, compared with Rs 4,911 crore in the year-ago period.
Revenue from operations fell 14.5% to Rs 16,907 crore, while EBITDA declined 27.9% to Rs 4,514 crore from Rs 6,261 crore a year earlier, the company said in its filing.
EBITDA margin contracted to 26.7% from 31.7% in the corresponding quarter last year.
Among other business segments, the agri business reported a 17% decline in revenue to Rs 8,082 crore, while EBIT from the segment fell 18% to Rs 354 crore.
Meanwhile, the company's FMCG business posted a 53% year-on-year increase in revenue to Rs 21,866 crore, according to the exchange filing.
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Revenue from operations slipped 14.5% to Rs 16,907 crore from Rs 19,761 crore in the corresponding quarter of last year; below analysts' estimates of Rs 18,630 crore.
Earnings before interest, taxes, depreciation and amortisation slumped 27.9% to Rs 4,514 crore from Rs 6,261 crore in the year-ago period, missing analysts' expectations of Rs 5,356 crore. Ebitda margin contracted 500 basis points to 26.7% from 31.7% year-on-year.
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