- ITC Ltd reported Q2 revenue of Rs 18,401 crore, up 1.8% year-on-year
- Net profit fell 20.1% to Rs 4,137 crore, slightly above Bloomberg estimates
- FMCG segment revenue rose to Rs 22,503.30 crore, led by Rs 15,536.13 crore from cigarettes
ITC Ltd. announced its financial results for the second quarter ending Sept. 30, 2026. The company posted a consolidated revenue from operations of Rs 18,401 crore, reflecting a 1.8% year-on-year increase compared to Rs 18,081 crore in Q2 FY26.
The top-line revenue figure of the compnay beat consensus analyst estimates tracked by Bloomberg, which had projected revenue at Rs 17,520 crore.
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On the profitability front, ITC reported a 20.1% year-on-year drop in net profit to Rs 4,137 crore, down from Rs 5,176 crore reported in the same period last year.
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However, the bottom-line managed to slightly outpace Bloomberg's consensus estimate of Rs 4,129 crore. The company's margins shrank to 28%, as compared to 34.6% in the preceding quarter.
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ITC Segment Performance: FMCG and Agri Business
ITC's standalone segment revenue showed growth across its major business categories. FMCG remained the largest revenue contributor, with segment revenue reaching Rs 22,503.30 crore during the September quarter. This compared with Rs 14,746.35 crore in Q2 FY26.
Within FMCG, cigarette revenue stood at Rs 15,536.13 crore, while other FMCG businesses contributed Rs 6,967.17 crore.
Agri Business generated revenue of Rs 4,451.69 crore, compared with Rs 3,976.24 crore a year earlier. Paperboards, paper and packaging revenue increased to Rs 3,015.85 crore from Rs 2,219.92 crore.
Total segment results stood at Rs 5,156.55 crore against Rs 6,320.72 crore in the year-ago quarter.
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ITC FMCG Business Records Strongest Revenue Growth in 14 Quarters
ITC's non-cigarette FMCG business continued to deliver strong growth during Q2 FY27. Consolidated revenue from the FMCG Others segment increased 19% year-on-year. Like-to-like revenue growth stood at 17.3%, excluding the impact of acquisitions and other changes.
The business recorded its fourth consecutive quarter of double-digit revenue growth. Revenue growth also reached a 14-quarter high. Segment profit before interest and tax (PBIT) increased 27.8% to Rs 558 crore, while PBIT margin expanded 75 basis points year-on-year.
Several product categories delivered growth of more than 20%. These included biscuits, snacks, instant noodles, spices, salt, frozen snacks, homecare and notebooks. Dairy and personal wash products also reported high-teens growth.
ITC's digital-first and organic portfolio grew more than 70% year-on-year. Its annual revenue run rate crossed Rs 1,800 crore. General Trade also recorded a strong recovery, while e-commerce, quick commerce and modern trade continued to expand.
Cigarette Business Faces Pressure After Tax Increase
ITC's cigarette business remained a key pressure point during the September quarter. The company reported a 27.2% year-on-year decline in cigarette segment results to Rs 3,813 crore from Rs 5,241 crore.
The company attributed the pressure to an unprecedented increase in taxes, which affected demand across the legal cigarette industry. However, ITC reported an improvement in sequential performance during the quarter.
The company has introduced new cigarette variants and strengthened its existing brands to protect its consumer base. It has also focused on limiting the shift towards illicit cigarette sales.
ITC reported a sharp increase in seizures of smuggled cigarette consignments across India. The company continues to focus on product innovation, brand positioning and portfolio changes to address the pressure on its cigarette business.
ITC Share Price Today
ITC shares closed at Rs 266.40 on November 2, gaining Rs 0.80, or 0.30%, from the previous close of Rs 265.60. The stock opened at Rs 266 and touched an intraday high of Rs 269.30 and a low of Rs 264.
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