ITC Q2 FY27 Results: Net Profit Falls 20% to ₹4,137 Crore

ITC Limited reported a 20.1% year-on-year fall in standalone net profit to ₹4,137.12 crore in Q2 FY27, compared with ₹5,175.70 crore last year. Revenue rose 45.6% to ₹28,317.67 crore, mainly due to changes in excise duty reporting after the GST Compensation Cess expired.

ITC Q2 FY27 Financial Results

Financial Metric	Q2 FY27	Q2 FY26	Growth
Revenue	₹28,317.67 crore	₹19,441.50 crore	+45.6%
Profit Before Tax	₹5,481.75 crore	₹6,847.35 crore	-20.0%
Net Profit	₹4,137.12 crore	₹5,175.70 crore	-20.1%
Basic EPS	₹3.30	₹4.13	-20.1%

Consolidated net profit declined 18.5% to ₹4,229.33 crore. The sharp revenue growth does not represent equivalent sales volume growth, as higher excise duty was included in reported revenue.

Segment-Wise Performance

• Cigarettes: Segment revenue rose to ₹15,536.13 crore from ₹8,722.83 crore, but segment results fell 27.2% to ₹3,813.45 crore due to tax-driven pressure on legal industry volumes.
• FMCG-Others: Revenue increased 15.7% to ₹6,967.17 crore, marking the fourth consecutive quarter of double-digit growth. Segment results reached ₹558.30 crore.
• Paperboards, Paper & Packaging: Revenue grew 35.9% to ₹3,015.85 crore, supported by the Century Pulp and Paper acquisition. Like-for-like revenue rose 10%, while PBIT increased 52%.
• Agri Business: Revenue grew 12% to ₹4,451.69 crore, with segment results reaching ₹510.67 crore, supported by value-added products and leaf tobacco exports.

Reasons Behind Profit Decline

Excise duty expenses increased sharply to ₹9,916.65 crore from ₹1,360.74 crore in Q2 FY26 following changes after the GST Compensation Cess expiry and higher excise duties.

The cigarettes business faced profitability pressure due to higher taxes and weaker legal industry volumes. However, non-cigarette businesses remained resilient, with standalone EBITDA growing 23% year-on-year.

Key Corporate Developments

ITC completed the acquisition of Century Pulp and Paper from Aditya Birla Real Estate Limited on August 1, 2026, supporting growth in its paperboards and packaging business.

During the quarter, Sproutlife Foods Private Limited became a wholly owned subsidiary. ITC's board also approved its amalgamation with the company.

ITC Share Performance

Period	Return
1 day	+0.30%
5 days	+3.30%
1 month	+1.39%
6 months	-15.40%
1 year	-36.38%
5 years	0.00%

Key takeaway: ITC's Q2 FY27 net profit declined despite higher reported revenue. Cigarettes remained under pressure, while FMCG-Others, paperboards and agri business recorded growth.

What were ITC's Q2 FY27 results?

ITC Limited reported standalone net profit of ₹4,137.12 crore in Q2 FY27, down 20.1% year-on-year from ₹5,175.70 crore. Revenue from operations increased 45.6% to ₹28,317.67 crore, partly reflecting changes in excise duty accounting following the expiry of the GST Compensation Cess.

Why did ITC's net profit decline in Q2 FY27?

ITC's standalone net profit declined due to pressure on cigarette business profitability and changes in taxation. Higher excise duty expenses, which increased to ₹9,916.65 crore from ₹1,360.74 crore in the year-ago quarter, also significantly affected reported revenue and expenses.

What was ITC's consolidated net profit in Q2 FY27?

ITC reported consolidated net profit of ₹4,229.33 crore in Q2 FY27, registering an 18.5% year-on-year decline.

Why did ITC's revenue increase by 45.6% in Q2 FY27?

ITC's standalone revenue from operations rose to ₹28,317.67 crore, partly because of changes in the treatment of excise duty following the expiry of the GST Compensation Cess. Therefore, the reported revenue increase should not be interpreted as equivalent growth in underlying sales volumes.

How did ITC's cigarette business perform in Q2 FY27?

ITC's cigarette segment results declined 27.2% year-on-year to ₹3,813.45 crore. Although segment revenue reached ₹15,536.13 crore, higher taxation and pressure on legal industry volumes affected profitability.

Which ITC business segments performed well in Q2 FY27?

FMCG-Others revenue grew 15.7% to ₹6,967.17 crore, while Paperboards, Paper and Packaging revenue increased 35.9% to ₹3,015.85 crore. Agri Business revenue also rose 12% to ₹4,451.69 crore, reflecting growth across ITC's non-cigarette businesses.

What impact did the Century Pulp and Paper acquisition have on ITC?

ITC completed the acquisition of Century Pulp and Paper on August 1, 2026. The acquisition contributed to revenue growth in the Paperboards, Paper and Packaging segment. On a like-for-like basis, the segment's revenue increased 10%, while its PBIT grew 52%.

How has ITC's share price performed over the past year?

Based on the supplied share performance figures, ITC shares declined 36.38% over one year and 15.40% over six months. The stock gained 1.39% over one month and 3.30% over five days. Its five-year return was reported at 0.00%.