MUMBAI–Indian conglomerate ITC Limited reported a 20.1% decline in consolidated net profit for the second quarter of fiscal 2027, as weakening profitability offset modest revenue growth across its diversified business operations.
The company posted a consolidated net profit of Rs 4,137 crore for the quarter ended September 30, 2026, compared with Rs 5,176 crore in the corresponding period a year earlier, according to a regulatory filing released Monday.
Consolidated revenue from operations increased 1.8% to Rs 18,401 crore from Rs 18,081 crore in the second quarter of the previous fiscal year.
Despite the revenue increase, ITC experienced a significant contraction in profitability. The company’s operating margin narrowed to 28%, compared with 34.6% in the preceding quarter.
ITC’s standalone operations recorded revenue growth across several major business divisions, including fast-moving consumer goods (FMCG), agriculture and packaging.
The FMCG business remained a major revenue contributor, generating Rs 22,503.30 crore during the September quarter, compared with Rs 14,746.35 crore in the corresponding period last year.
Within the FMCG division, the cigarettes business accounted for Rs 15,536.13 crore in revenue, while the company’s non-cigarette consumer products portfolio contributed Rs 6,967.17 crore.
The company’s agricultural business also reported higher sales, with revenue climbing to Rs 4,451.69 crore from Rs 3,976.24 crore a year earlier.
ITC’s paperboards, paper and packaging division recorded revenue of Rs 3,015.85 crore, up from Rs 2,219.92 crore in the same quarter of fiscal 2026.
However, the growth across these business segments did not translate into stronger overall earnings.
Total segment results declined to Rs 5,156.55 crore from Rs 6,320.72 crore in the year-earlier quarter, reflecting weaker profitability despite increased business activity.
The latest financial results highlight the challenges facing ITC as it seeks to sustain earnings growth across its consumer goods, agricultural and packaging operations.
ITC shares ended Monday’s trading session slightly higher, closing at Rs 266.40, an increase of 0.30%, or Rs 0.80, from the previous closing price of Rs 265.60.
The stock opened at Rs 266 and traded between an intraday high of Rs 269.30 and a low of Rs 264 during the session.
The company’s latest quarterly performance reflects continued revenue expansion across several business divisions, although margin pressures remain a significant challenge to its overall profitability. (Source: IANS)
