ITC Ltd Q2 net skids 20% to ₹4,137 crore, higher taxation hits cigarette biz

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Revenue from operations grew 45.65% y-o-y to ₹28,317.67 crore on a strong performance across non-cigarette business segments

By BL Kolkata Bureau

Updated - November 02, 2026 at 09:57 PM. | Kolkata, Nov 2

Total expenses jumped 73.89% y-o-y in the second quarter, with the cost of materials consumed rising 15% | Photo Credit: RUPAK DE CHOWDHURI

Diversified conglomerate ITC Ltd reported around 20 per cent year-on-year fall in its standalone net profit to ₹4,137.12 crore in the second quarter this fiscal, as its cigarette business profitability was hit as a result of higher taxation following the introduction of a new tax regime.

The Kolkata-headquartered conglomerate had posted a net profit of ₹5,175.70 crore in Q2FY26. Revenue from operations during Q2FY27 grew 45.65 per cent y-o-y to ₹28,317.67 crore (₹19,441.50 crore), backed by strong performances across all non-cigarette business segments. The non-cigarette FMCG business revenue recorded a 14-quarter high growth during the period.

ITC, in a statement, said crude oil and crude-linked input prices remained elevated, while supply chain disruptions and higher freight costs persisted. The company’s total expenses witnessed a 73.89 per cent y-o-y at ₹23,617.78 crore in the second quarter this fiscal, with the cost of material consumed rising 15 per cent.

During Q2FY27 overall EBITDA declined 17.4 per cent y-o-y at ₹5,160 crore compared with ₹6,250 crore in the corresponding period of FY26. Ebitda for the non-cigarette businesses, however, grew 23 per cent.

Revenue from the company’s cigarettes business rose 78.11 per cent to ₹15.536.13 crore in Q2, while operating profit from the segment decreased 27.23 per cent y-o-y to ₹3,813.45 crore, according to the stock exchange filing. The country’s largest cigarette maker said legal industry volumes remained under pressure due to an unprecedented increase in tax.

During the period, the non-cigarette FMCG business registered a 15.67 per cent growth in revenue to ₹6,967.17 crore, while the segment posted a 27.80 cent increase in operating profit to ₹558.30 crore. The segment’s EBITDA margin expanded over 50 basis points year-on-year and quarter-on-quarter basis. During the period under review, digital-first and organic portfolio sustained a high growth trajectory.

The company said sharp input cost escalation across categories was mitigated through portfolio mix enrichment, cost management initiatives and calibrated pricing actions.

The company’s agri business witnessed an 11.96 per cent increase in revenue to ₹4,451.69 crore, and the segment registered an 11.23 per cent rise in operating profit to ₹510.67 crore. The revenue growth was led by value-added products and leaf tobacco exports.

Overall, agri business remained impacted by West Asia conflict led disruptions and delayed call-offs by customers, the company pointed out.

The paperboards, paper & packaging business of the conglomerate witnessed a 35.85 per cent growth in revenue to ₹3,015.85 crore. The business posted a 47.59 per cent increase in its operating profit to ₹281.93 crore. The segment PBIT was up 48 per cent y-o-y during Q2FY27.

Published on November 2, 2026

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