ITC Q2 results: Net profit rises 2.7% to ₹5,126.11 cr, revenue down 1.3%

The company reported consolidated gross revenue of Rs 21,255.86 crore for Q2FY26, down 1.3 per cent compared to Rs 21,536.38 crore a year ago

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Cigarette-to-soap conglomerate ITC on Thursday reported a 2.7 per cent year-on-year (Y-o-Y) increase in consolidated net profit attributable to owners at ₹5,126.11 crore in the second quarter of 2025-26 (Q2FY26), primarily aided by its cigarette business. In the year-ago period, net profit had stood at ₹4,992.87 crore.

 

The demerger of the hotel business became effective from January 1, 2025, and net profit from continuing operations in Q2FY26 stood at ₹5,186.55 crore, up by 4.2 per cent from ₹4,979.14 crore in the year-ago period. Net profit came in ahead of the Bloomberg consensus estimate of ₹5,080 crore.

 

The company reported consolidated gross revenue of ₹21,255.86 crore for Q2FY26, down by 1.3 per cent compared to ₹21,536.38 crore a year ago.

 

The net revenue at ₹19,502 crore came in marginally lower than the Bloomberg consensus estimate of ₹19,774 crore. Sequentially, net revenue was down 9.3 per cent while net profit attributable to owners was down by 2.3 per cent.

 

The company’s Board on Thursday recommended former G20 Sherpa and NITI Aayog CEO Amitabh Kant as an independent director for a period of five years, with effect from January 1, 2026.

 

The Board also approved the reappointment of Hemant Malik as a whole-time director for a period of two years, with effect from August 12, 2026.

 

ITC highlighted a strong operating performance by group companies led by ITC Infotech India Limited and ITC Hotels Limited. Subsidiary Surya Nepal Private Limited delivered resilient performance amid disruptions in Nepal during September 2025, it added.

 

Revenue from operating businesses was up except agri. ITC’s non-cigarette fast moving consumer goods (FMCG) segment recorded revenue of ₹6,059.12 crore, up by 8.5 per cent Y-o-Y, amid operational challenges.

 

The company said excessive rains in many parts of the country, and transition to the new GST regime posed operational challenges, causing short-term business disruptions. Pre-tax profit from the segment was at ₹438.72 crore, marginally down from ₹444.25 crore a year ago.

 

Stability in taxes, differentiated and premium offerings boosted the performance of the cigarette segment, which clocked in revenue of ₹9,414.35 crore, up by 6.04 per cent from the year-ago period. Pre-tax profit at ₹5,462.10 crore was up by 4.2 per cent Y-o-Y.

 

The agri business segment recorded revenue of ₹4,037.80 crore, down by 30.9 per cent Y-o-Y.

 

The company said that value-added agri exports during the quarter were relatively subdued due to delayed call-offs by the customers amid uncertainty on account of US tariffs. Pre-tax profit from the segment, however, was up by 1.5 per cent Y-o-Y to ₹453.61 crore.

 

The operating environment for paperboards, paper, and packaging remained challenging during the quarter, with sustained influx of low-priced supplies into global markets, including India, elevated domestic wood prices, and subdued realisations, the company said.

 

The segment posted revenue of ₹2,220.32 crore, up by 5.02 per cent Y-o-Y. Pre-tax profit at ₹181.39 crore was, however, down by 22.8 per cent.