ITC Q2 FY26: Net Profit Rises 4.2% YoY to ₹5,186.6 Crore, Revenue ₹21,255.9 Crore

Kolkata, October 30, 2025: ITC Limited (NSE: ITC, BSE: 500875) announced a consolidated net profit of ₹5,186.6 crore for Q2 FY26, an increase of 4.2% YoY from ₹4,979.1 crore. The company’s total income was ₹21,840.3 crore with revenue from operations of ₹21,255.9 crore. Profit before tax of ₹6,978.7 crore includes an exceptional gain from an insurance settlement of ₹88.1 crore.

As of 30 October 2025, the share price of ITC Limited closed at ₹419.35, down ₹2.25 or 0.53% from its previous close of ₹421.60. During the session, the stock touched an intraday high of ₹421.70 and a low of ₹416.15, with the company’s market capitalisation standing at ₹5,28,173.60 crore.

Consolidated Performance

Total income for Q2 FY26 stood at ₹21,840.3 crore, down 8.3% sequentially and 1.4% year-on-year, reflecting lower revenue from select business segments. However, EBITDA proxy rose 10.8% quarter-on-quarter to ₹7,824.2 crore, supported by improved operational efficiencies and cost optimisation. Net profit declined 2.9% from the previous quarter but registered a 4.2% year-on-year growth to ₹5,186.6 crore, which included an exceptional gain of ₹88.1 crore. Earnings per share (EPS) came in at ₹4.09 compared to ₹4.19 in the preceding quarter.

In Q2 FY26, ITC reported a standalone total income of ₹20,280 crore, down from ₹21,721.1 crore in Q1 FY26, reflecting a moderation in revenue. However, net profit rose to ₹5,179.8 crore from ₹4,912.4 crore in the previous quarter, driven by improved margins and operational efficiency. For continuing operations, basic earnings per share (EPS) stood at ₹4.13.

Segment-wise Performance, Consolidated

In Q2 FY26, ITC’s consolidated segment revenue rose 7% year-on-year to ₹15,473.5 crore, driven mainly by growth in its FMCG portfolio. The Cigarettes business expanded 6%, while the FMCG–Others segment recorded an 8.5% increase, supported by strong demand across key categories. The Paperboards, Paper & Packaging division grew 5%, reflecting stable volume trends, whereas the Agri Business declined 30.9% due to lower trading opportunities. The Others segment surged 20.6%, led by hotels and information technology services. Segment profit before tax from continuing operations stood at ₹6,978.7 crore after accounting for fair value adjustments and exceptional gains.

One-Offs, Discontinued Ops and Associates

The extraordinary profit of ₹88.1 crore is from gaining an insurance recovery for past leaf tobacco losses. The demerged hotels business had no impact in the current quarter, unlike last year’s impact of ₹75.3 crores in Q2 FY26. The associates and joint ventures returned to contributing, producing a year-on-year improvement of ₹66.4 crores.

Balance Sheet Highlights, Consolidated

On September 30, 2025, ITC had total assets of ₹90,802.7 crore, equity of ₹71,594.9 crore, and liabilities of ₹19,207.8 crore. The company has strong liquidity, high current asset levels, and generally low leverage.

Strategic Context

The quarter reflected strong momentum in the FMCG and Paperboards & Packaging segments, partially offset by a weaker performance in the Agri Business as commodity and trading activities normalised. The company’s revenue mix continued to move towards higher-value FMCG categories, while cigarettes maintained their position as steady contributors to overall earnings.

REF:https://nsearchives.nseindia.com/corporate/ITC_30102025162449_Results.pdf

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