Diversified conglomerate reports strong revenue growth across FMCG, paper and agri businesses, while higher expenses and global trade disruptions weigh on profitability
New Delhi, November 2, 2026: Diversified conglomerate ITC Limited reported an 18.45% year-on-year decline in consolidated net profit to ₹4,229.33 crore for the quarter ended September 30, 2026, as rising operating expenses weighed on profitability despite strong revenue growth.
The ITC Q2 FY27 Results showed that consolidated revenue from operations increased 43.85% to ₹30,578.40 crore, compared with ₹21,255.86 crore in the corresponding quarter of the previous financial year.
According to the company’s regulatory filing, ITC had reported a consolidated net profit of ₹5,186.55 crore in the July–September quarter of FY2025-26.
The Kolkata-headquartered company’s total consolidated income, including other income, rose 42.33% to ₹31,085.76 crore during the quarter.
However, total expenses increased sharply by 69.6% year-on-year to ₹25,462.44 crore, reflecting significant cost pressures during the reporting period.
ITC said its operating environment continued to face heightened uncertainty because of geopolitical tensions, trade disruptions and elevated input costs.
The company highlighted that crude oil and crude-linked raw material prices remained high, while supply chain disruptions and increased freight expenses continued to affect business operations.
Despite these challenges, ITC reported growth across its non-cigarette business segments, supported by performance in fast-moving consumer goods (FMCG), paper and agriculture-related operations.
The FMCG business recorded its fourth consecutive quarter of double-digit revenue growth, indicating sustained momentum in the company’s consumer products portfolio.
ITC also reported an improvement of 50 basis points in the FMCG segment’s EBITDA margin on a year-on-year basis, despite inflationary pressures.
The margin expansion indicates an improvement in operating profitability within the FMCG segment, even as the wider company faced higher consolidated expenses.
The company’s paper business witnessed a strong recovery during the September quarter, contributing to the growth momentum across its non-cigarette operations.
ITC’s agri business also delivered robust growth despite disruptions in international trade linked to tensions in West Asia.
The company’s diversified business portfolio includes cigarettes, fast-moving consumer goods, paperboards and packaging, and agri-related operations.
The financial performance for the quarter reflects a contrast between strong revenue expansion and declining consolidated profitability.
While revenue from operations grew by nearly 44%, the 69.6% increase in total expenses placed pressure on the company’s overall earnings.
The results also highlight the challenges faced by businesses operating in an environment of volatile commodity prices, international trade uncertainty and elevated logistics costs.
ITC’s FMCG performance remained a positive development during the quarter, with sustained double-digit revenue growth and improved EBITDA margins.
The recovery in the paper business and growth in agri operations also supported the company’s overall revenue performance.
However, the decline in consolidated net profit indicates that higher expenses continued to affect the company’s bottom line during the second quarter of FY27.
The company’s performance in the coming quarters will remain linked to developments in input costs, supply chain conditions and demand across its diversified business segments.
Source: ITC Limited Regulatory Filing and Earnings Statement, Q2 FY2026-27.
