ITC Q2 standalone net profit rises 2% on strong FMCG and cigarettes performance; beats estimates

Diversified conglomerate ITC Ltd on Thursday (October 30) reported a standalone net profit of ₹5,180 crore for the second quarter, up 2% from ₹5,078 crore in the same period last year. Revenue stood at ₹18,021 crore, reflecting a 3.4% decline from ₹18,648 crore in Q2 of the previous year.

EBITDA increased 2.1% year-on-year to ₹6,252 crore from ₹6,123 crore, with the EBITDA margin expanding to 34.7% from 32.8% in the corresponding period last year.

When compared with CNBC-TV18 polls, the company’s net profit of ₹5,180 crore beat the estimated ₹5,062 crore, while revenue of ₹18,021 crore fell short of the poll estimate of ₹19,220 crore.



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EBITDA came in slightly below the poll estimate at ₹6,252 crore versus ₹6,290 crore, and the margin exceeded expectations at 34.7% versus 32.7% forecasted. The company reported gross revenue of ₹19,148 crore for the second quarter, up 7.1% year-on-year (ex-Agri Business), driven by Cigarettes and FMCG.

Consolidated Performance:

The company’s consolidated performance was supported by strong operating results from group companies, including ITC Infotech India Limited and ITC Hotels Limited. Its subsidiary, Surya Nepal Private Limited, delivered a resilient performance despite disruptions in Nepal during September 2025. Gross revenue (ex-Agri Business) increased 7.9% YoY, with EBITDA up 2.2% YoY.

FMCG – Others

The FMCG – Others segment sustained its revenue growth momentum amidst operational challenges, up 8% YoY (ex-Notebooks). Excessive rains in several parts of the country and the transition to the new GST regime caused short-term business disruptions. Staples, Dairy, Premium Personal Wash, and Agarbattis drove growth.

Strong performance continued in the premium portfolio and NewGen channels. The Notebooks industry remained impacted due to low-priced paper imports and opportunistic plays by local and regional players. Segment EBITDA margin improved 50 basis points quarter-on-quarter.



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Commodity prices stabilised at elevated levels, and segment EBITDA margins stood at 10% (Q2FY25: 10.6%; Q1FY2:6 9.4%). Smart net revenue management, ongoing price-volume-value rebalancing, and focused cost management initiatives helped mitigate input price volatility.

Competitive trade and marketing investments continued to support growth and market standing. The digital-first and organic portfolio performed robustly, with ARR1 approximately ₹1,100 crore.

FMCG – Cigarettes

The Cigarettes segment recorded net revenue growth of 6.8% YoY, with segment PBIT up 4.3% YoY. Differentiated variants and the premium segment registered strong growth, leveraging mainstream trademarks and innovation. Strategic portfolio and market interventions, including a focus on competitive belts and measures to counter illicit trade, reinforced market standing. Leaf tobacco consumption costs remained elevated, though moderation in procurement prices was observed in the current crop cycle.

Agri Business

The Agri Business segment’s performance reflected timing differences and a high base effect. H1 segment revenue grew 7%, while H1 segment results increased 10%. Leaf tobacco posted strong growth, with the business leveraging crop development expertise, superior product quality, and strong customer relationships.



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Value-added Agri exports were relatively subdued due to delayed call-offs amid uncertainty regarding US tariffs. The company continued to focus on market development in new geographies and scaling up the business by leveraging structural capabilities in sourcing and processing.

Paperboards, Paper & Packaging

The Paper segment’s performance improved sequentially, with profit up 17% and margins up 90 basis points quarter-on-quarter. The operating environment remained challenging due to low-priced supplies in global markets, elevated domestic wood prices, and subdued realisations. Initial signs of moderation in wood prices and improved availability were observed. Segment revenue grew 5% YoY, driven by volumes, and the speciality paper segment posted robust growth.



Shares of ITC Ltd ended at ₹418.70, down by ₹2.90, or 0.69%, on the BSE.