ITC Limited reported a standalone net profit of ₹4,137 crore for the July-September quarter of FY27, a decline of 20% year-on-year from ₹5,176 crore in the same period last year. The company's total revenue from operations increased 28% YoY to ₹28,318 crore, up from ₹19,442 crore in the year-ago period. EBITDA dropped 17% to ₹5,160 crore against ₹6,251 crore in the corresponding quarter of the previous fiscal year. The EBITDA margin contracted to 18.22% from 31.15% YoY, reflecting margin pressure despite top-line growth. These results were announced on Monday, November 2, after market hours. The company's FMCG segment sustained strong double-digit growth, with biscuits, snacks, noodles, spices, salt, frozen snacks, homecare and notebooks recording growth of over 20%.

Dairy and personal wash products posted high teens' growth within the FMCG segment, while the segment's EBITDA margin expanded by over 50 basis points both annually and sequentially. Higher input costs were mitigated through a better portfolio mix, cost management initiatives and calibrated pricing actions. ITC's digital-first and organic portfolio continued to report strong growth, with revenue rising over 70% YoY. The portfolio's annual recurring revenue (ARR) stood at over ₹1,800 crore. The cigarettes business reported focused execution of strategic and calibrated responses to navigate the unprecedented tax increase, balancing stakeholder interests and improving QoQ performance. Legal industry volumes in the cigarettes business remained under pressure due to the unprecedented tax increase, with the company adopting measures to mitigate disproportionate volume shifts to illicit trade.

The agri business segment reported 12% YoY revenue growth, led by value-added products and leaf tobacco exports. The overall segment continued to be affected by disruptions caused by the West Asia conflict and delays in customer call-offs. The company stepped up new market development initiatives to diversify into other geographies. Value-added Agri products (VAAP) recorded strong growth, driven by spices and fruits and vegetables. However, lower domestic demand following the unprecedented tax increase on cigarettes continued to affect the overall leaf tobacco business. ITC's paperboards, paper and packaging section reported a 36% annual increase in revenue and a 48% rise in segment profit before interest and tax (PBIT). The firm attributed the recovery to improving demand, pricing actions that mitigated higher input costs, and strong performance in key grades of value-added products, its sustainable portfolio and exports.

On Thursday, ITC shares settled at ₹266.40 apiece on the National Stock Exchange, rising 0.3%. The earnings announcement came after the market hours. The company's FMCG segment sustained strong double-digit growth across multiple categories including biscuits, snacks, noodles, spices, salt, frozen snacks, homecare and notebooks. The segment's EBITDA margin expansion of over 50 basis points both annually and sequentially demonstrated resilience despite higher input costs. ITC's digital-first and organic portfolio continued to report strong growth, with revenue rising over 70% YoY and ARR standing at over ₹1,800 crore. The cigarettes business implemented multiple measures to strengthen its product portfolio and market position and counter global smuggled brands, including introducing new variants and its own trademarks with international appeal.

The agri business segment reported 12% YoY revenue growth, led by value-added products and leaf tobacco exports. The overall segment continued to be affected by disruptions caused by the West Asia conflict and delays in customer call-offs. ITC stepped up new market development initiatives to diversify into other geographies. Value-added Agri products (VAAP) recorded strong growth, driven by spices and fruits and vegetables. However, lower domestic demand following the unprecedented tax increase on cigarettes continued to affect the overall leaf tobacco business. The paperboards, paper and packaging section reported a 36% annual increase in revenue and a 48% rise in segment profit before interest and tax (PBIT). The firm attributed the recovery to improving demand, pricing actions that mitigated higher input costs, and strong performance in key grades of value-added products, its sustainable portfolio and exports. These segment performances contributed to the overall financial results for Q2 FY27.

ITC's total revenue from operations increased 28% YoY to ₹28,318 crore during the quarter under review, in contrast to ₹19,442 crore in the year-ago period. The standalone net profit declined 20% YoY to ₹4,137 crore from ₹5,176 crore in the same period last year. EBITDA dropped 17% to ₹5,160 crore as against ₹6,251 crore in the corresponding quarter of the previous fiscal year. The EBITDA margin contracted to 18.22% as against 31.15% YoY. The company's FMCG segment sustained strong double-digit growth, with biscuits, snacks, noodles, spices, salt, frozen snacks, homecare and notebooks recording growth of over 20%. Dairy and personal wash products posted high teens' growth. The segment's EBITDA margin expanded by over 50 basis points both annually and sequentially, while higher input costs were mitigated through a better portfolio mix, cost management initiatives and calibrated pricing actions.