ITC Q2 earnings: Net profit rises 2% to ₹5,180 crore, revenue declines 3% to ₹18,021 crore

ITC, the country's largest cigarette maker, on Thursday, October 30, reported net profit of ₹5,180 crore in the second quarter of current financial year, marking an increase of 2% from ₹5,078 crore in the same period last year.

The company's revenue from operations after deducting excise duty declined 3.4% annually to ₹18,021 crore in July-September period from ₹18,649 crore a year earlier.

ITC's revenue from cigarette business rose 7% annually to ₹8,723 crore and its revenue from other FMCG business gained 7% to ₹5,964 crore. Its total revenue from FMCG business advanced 6.77% to ₹14,687 crore.

Differentiated variants and premium cigarette segment registered strong growth during the quarter leveraging mainstream trademarks and innovation, ITC said in a press release.

FMCG business posted 8% year-on-year (YoY) increase in revenue excluding notebooks, despite facing operational challenges from excessive rains and the transition to the new GST regime.

Growth was led by staples, dairy, premium personal wash products and agarbattis even as the notebooks category continued to be impacted by low-priced paper imports and aggressive local competition, ITC said in an earnings release.

Segment EBITDA margin improved 50 basis points sequentially to 10%, aided by stabilising commodity prices and focussed cost management initiatives. ITC said prices of key inputs such as edible oil, wheat, maida and cocoa and soap remained elevated YoY but showed signs of stability.

During the quarter, ITC expanded its Sunfeast Baked Creations brand with a new range of super-premium cookies and cakes made with globally sourced ingredients. These short shelf-life products are distributed via hyperlocal and customised supply chains and have received strong consumer response on quick commerce platforms, ITC noted.

The Agri Business saw a temporary moderation due to timing differences and a high base, but first half segment revenue rose 7% and segment result advanced 10% YoY. Value-added agri exports were subdued amid uncertainty from US tariffs, though ITC said it continues to expand into new geographies.

The paperboards, paper and packaging segment reported a 17% sequential rise in profit and a 90 basis points (bps) margin improvement, supported by higher volumes and initial moderation in wood prices. The company noted that the imposition of a Minimum Import Price on Virgin Multi-layer Paperboard (from Aug 22, 2025) and potential anti-dumping duties on China and Chile are expected to aid industry margins.

ITC shares ended 0.53% lower at ₹419,35 ahead of its earnings announcement.