- ITC's packaged foods and FMCG segment grew over 20% in key categories during Q2 FY27
- FMCG-Others segment revenue rose 19% YoY, excluding atta growth accelerated to 23%
- Segment EBITDA margin expanded to 10.4%, with PBIT increasing 28% to Rs 558 crore
ITC Ltd.'s packaged foods and everyday consumer products business delivered a strong performance in the September quarter, with biscuits, noodles, salt, snacks and other key categories growing at more than 20%, outpacing the company's cigarette business amid mounting cost pressures.
According to the company's media statement, the FMCG-Others segment reported consolidated revenue growth of 19% year-on-year, excluding atta, growth accelerated to 23%. Revenue growth in the segment reached a 14-quarter high, marking the fourth consecutive quarter of double-digit growth.
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The performance was supported by broad-based demand across categories. Biscuits, snacks, noodles, spices, salt, frozen snacks, homecare products and notebooks all recorded growth of more than 20%. Dairy and personal wash products delivered growth in the high teens.
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The numbers underline the growing contribution of ITC's non-cigarette consumer businesses as the company expands its presence across packaged foods, personal care and education and stationery products.
Quarterly FMCG-Others revenue has more than doubled since the second quarter of FY20, rising from Rs 3,288 crore to Rs 6,967 crore in the September quarter of FY27, according to the company's presentation.
Growth came even as the company faced a sharp escalation in input costs across categories. ITC said it managed the pressure through a combination of product mix improvements, cost management measures and calibrated pricing actions.
The segment's EBITDA margin expanded by more than 50 basis points year-on-year and sequentially, reaching 10.4% in the September quarter, according to the company's presentation.
Segment profit before interest and tax (PBIT) increased 28% year-on-year to Rs 558 crore from Rs 437 crore a year earlier. The segment's PBIT margin also improved by 75 basis points year-on-year.
ITC said it continued to maintain competitive levels of trade and marketing investments to support growth and strengthen its market position.
Several of ITC's established brands continued to gain traction during the quarter. Sunfeast biscuits and cakes recorded healthy volume growth and higher realisations, supported by a richer product mix and pricing. The company also reported encouraging consumer responses to recent launches.
Its YiPPee! instant noodles business sustained its volume-led growth, while Bingo! snacks continued to benefit from new product offerings. Aashirvaad Salt maintained its volume-led momentum, and Sunrise Spices strengthened its position in its core market of West Bengal while expanding in neighbouring markets.
The company also reported strong growth across its digital-first and organic product portfolio, which includes Yoga Bar, Prasuma, Mother Sparsh and 24 Mantra Organic. This portfolio grew more than 70% year-on-year, with its annual revenue run rate exceeding Rs 1,800 crore.
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ITC said its new-generation sales channels, including e-commerce, quick commerce and modern trade, continued to grow strongly. General trade also recorded a recovery during the quarter.
The performance, however, was not uniform across the company's businesses. ITC's cigarette segment continued to face pressure following an unprecedented tax increase, which the company said had affected legal industry volumes.
While the cigarette business remains an important part of ITC's portfolio, the latest results highlight the momentum in its broader consumer goods operations, where growth across everyday products helped deliver the strongest FMCG revenue performance in 14 quarters.
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