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ITC Q2 FY27 results: net profit down 18.5% to ₹4,229 crore, revenue up 43.9%
ITC Limited reported consolidated Q2 FY27 revenue of ₹30,578 crore, up 43.9% from Q2 FY26, but net profit fell 18.5% to ₹4,229 crore. EBITDA declined 15.7% to ₹5,645 crore and margin narrowed to 18.5% from 31.5%; standalone revenue was ₹28,317.67 crore and net profit was ₹4,137.12 crore.
Key points
- Consolidated Q2 FY27 revenue was ₹30,578 crore, up ₹9,323 crore or 43.9% from Q2 FY26.
- EBITDA was ₹5,645 crore, down ₹1,050 crore or 15.7% from Q2 FY26, while margin fell 13.0 percentage points to 18.5%.
- Net profit was ₹4,229 crore, down ₹957.22 crore or 18.5% from Q2 FY26; basic EPS fell ₹0.77 to ₹3.32.
- Revenue rose ₹1,055 crore or 3.6% from Q1 FY27, but net profit fell ₹279.46 crore or 6.2%.
- H1 FY27 revenue was ₹60,101.7 crore, up 35.4%, while net profit was ₹8,738.12 crore, down 17.0%.
How did ITC perform in Q2 FY27?
ITC Limited reported consolidated revenue from operations of ₹30,578 crore in Q2 FY27, up ₹9,323 crore or 43.9% from ₹21,256 crore in Q2 FY26. Total income rose ₹9,246 crore or 42.3% to ₹31,085.76 crore. The filing said higher excise duty following the expiry of GST Compensation Cess made the revenue comparison not strictly comparable.
EBITDA fell ₹1,050 crore or 15.7% to ₹5,645 crore, and the margin narrowed 13.0 percentage points to 18.5%. Profit before tax fell ₹1,315 crore or 19.0% to ₹5,598 crore, while net profit declined ₹957.22 crore or 18.5% to ₹4,229 crore. Basic EPS fell ₹0.77 to ₹3.32.
Against Q1 FY27, revenue increased ₹1,055 crore or 3.6% to ₹30,578 crore and EBITDA rose ₹463.97 crore or 9.0% to ₹5,645 crore. Margin increased 1.0 percentage point to 18.5%. Net profit nevertheless fell ₹279.46 crore or 6.2% to ₹4,229 crore, and basic EPS declined ₹0.19 to ₹3.32.
On a standalone basis, Q2 FY27 revenue was ₹28,317.67 crore and net profit was ₹4,137.12 crore, compared with standalone profit before tax of ₹5,179.82 crore. The board also approved standalone and consolidated unaudited results for the quarter and six months ended 30 September 2026, along with the balance sheet and cash-flow statement.
| ₹ crore | Q2 FY27 | Q1 FY27 | Q2 FY26 | YoY | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 30,578 | 29,523 | 21,256 | +43.9% | +3.6% |
| Other income | 507.36 | 655.71 | 584.40 | −13.2% | −22.6% |
| Total expenses | 25,462 | 24,810 | 15,016 | +69.6% | +2.6% |
| EBITDA | 5,645 | 5,181 | 6,695 | −15.7% | +9.0% |
| EBITDA margin | 18.5% | 17.5% | 31.5% | −13.0 pp | +1.0 pp |
| Profit before tax | 5,598 | 5,775 | 6,912 | −19.0% | −3.1% |
| Tax | 1,465 | 1,352 | 1,792 | −18.2% | +8.4% |
| Net profit | 4,229 | 4,509 | 5,187 | −18.5% | −6.2% |
| EPS (₹) | 3.32 | 3.51 | 4.09 | −18.8% | −5.4% |
EBITDA here is revenue from operations less operating costs (total expenses excluding finance costs and depreciation): before other income and exceptional items. Growth is shown only when both figures are positive. Source: Company's results filing (XBRL).
What changed in ITC's costs and profit?
Total expenses rose ₹10,446 crore or 69.6% to ₹25,462 crore from Q2 FY26. Cost of materials increased ₹1,152 crore or 17.5% to ₹7,729 crore, employee cost rose ₹232.03 crore or 14.0% to ₹1,887 crore, and depreciation increased ₹55.80 crore or 12.8% to ₹490.60 crore. Finance costs rose ₹18.22 crore or 90.9% to ₹38.27 crore.
Other expenses increased ₹9,067 crore or 190.3% to ₹13,832 crore from ₹4,765 crore. The filing said continuing brand-building costs for personal care and branded packaged food products are included in this line and in the FMCG-Others segment. Other income fell ₹77.04 crore or 13.2% to ₹507.36 crore.
The quarter included an exceptional charge of ₹25.66 crore related to the acquisition of the pulp and paper business operated as Century Pulp and Paper. Q2 FY26 included an exceptional gain of ₹88.08 crore from the final settlement of an insurance claim for leaf tobacco stocks destroyed in a fire at a third-party warehouse. Tax expense fell ₹326.84 crore or 18.2% to ₹1,465 crore.
The filing also noted that Century Pulp and Paper was included in the results and the Paperboards, Paper & Packaging segment from 1 August 2026, making those figures not comparable with previous periods. Government increases in GST and Central Excise duty on cigarettes also affected reported gross revenue and excise duty from 1 February 2026.
| ₹ crore | Q2 FY27 | Q2 FY26 | Change | Change % |
|---|---|---|---|---|
| Cost of materials | 7,729 | 6,577 | +1,152 | +17.5% |
| Employee cost | 1,887 | 1,654 | +232.03 | +14.0% |
| Finance costs | 38.27 | 20.05 | +18.22 | +90.9% |
| Depreciation | 490.60 | 434.80 | +55.80 | +12.8% |
| Other expenses | 13,832 | 4,765 | +9,067 | +190.3% |
| Total expenses | 25,462 | 15,016 | +10,446 | +69.6% |
| Other income | 507.36 | 584.40 | −77.04 | −13.2% |
| Tax | 1,465 | 1,792 | −326.84 | −18.2% |
| Exceptional items | −25.66 (charge) | +88.08 (gain) |
Source: Company's results filing (XBRL).
How did the first half of FY27 go?
For H1 FY27, ITC reported consolidated revenue of ₹60,101.7 crore, up ₹15,716.49 crore or 35.4% from ₹44,385.21 crore in H1 FY26. Total income rose ₹15,612.95 crore or 34.2% to ₹61,264.77 crore. The filing said the revenue comparison reflects the impact of higher excise duty and is not strictly comparable with the previous period.
Profit before tax fell ₹2,598.97 crore or 18.6% to ₹11,372.6 crore from ₹13,971.57 crore. Net profit declined ₹1,791.84 crore or 17.0% to ₹8,738.12 crore, while basic EPS fell ₹1.45 to ₹6.83 from ₹8.28.
| ₹ crore | H1 FY27 | H1 FY26 | Change |
|---|---|---|---|
| Revenue from operations | 60,102 | 44,385 | +35.4% |
| Profit before tax | 11,373 | 13,972 | −18.6% |
| Net profit | 8,738 | 10,530 | −17.0% |
| EPS (₹) | 6.83 | 8.28 | −17.5% |
Source: Company's results filing (XBRL).
What do the balance sheet and cash flow show?
Total assets rose to ₹96,355.52 crore as of 30 September 2026 from ₹93,792.38 crore as of 31 March 2026, while total equity fell to ₹71,939.99 crore from ₹72,873.02 crore. Borrowings declined to ₹242.93 crore from ₹2,186.22 crore, and cash rose to ₹834.62 crore from ₹643.46 crore.
Inventories increased to ₹22,975.37 crore from ₹18,622.96 crore. Trade receivables rose to ₹4,753.79 crore from ₹3,922.86 crore, and trade payables increased to ₹6,282.63 crore from ₹5,639.55 crore. These balance-sheet movements compare the positions at 30 September 2026 and 31 March 2026.
H1 FY27 operating cash flow was ₹8,362.97 crore, compared with ₹6,162.6 crore in H1 FY26. Investing cash flow was ₹3,891.83 crore against ₹3,278.75 crore, while financing cash flow was negative ₹12,037.29 crore against negative ₹9,546.45 crore. Capital expenditure was ₹1,085.98 crore, compared with ₹1,062.09 crore.
| ₹ crore | As of 30 September 2026 | As of 31 March 2026 |
|---|---|---|
| Total assets | 96,356 | 93,792 |
| Total equity | 71,940 | 72,873 |
| Borrowings | 242.93 | 2,186 |
| Cash and equivalents | 834.62 | 643.46 |
| Inventories | 22,975 | 18,623 |
| Trade receivables | 4,754 | 3,923 |
Source: Company's results filing (XBRL).
| ₹ crore | H1 FY27 | H1 FY26 |
|---|---|---|
| Cash from operations | 8,363 | 6,163 |
| Cash from investing | 3,892 | 3,279 |
| Cash from financing | −12,037 | −9,546 |
| Capital expenditure | 1,086 | 1,062 |
Source: Company's results filing (XBRL).
How has ITC done over the last 8 quarters?
Revenue rose in each of the last four quarters and reached ₹30,578 crore in Q2 FY27, up from ₹29,523 crore in Q1 FY27. The highest quarterly revenue in the reported series was ₹30,578 crore, while the lowest was ₹20,349.96 crore in Q3 FY25. Revenue has moved higher across the latest quarters shown.
Net profit was ₹4,229.33 crore in Q2 FY27, below ₹4,508.79 crore in Q1 FY27 and the recent peak of ₹5,469.74 crore in Q4 FY26. EBITDA margin rose from 17.5% in Q1 FY27 to 18.5% in Q2 FY27, but remained below 31.5% in Q2 FY26 and the 32.0% peak in Q4 FY25.
Across the reported quarters, the EBITDA margin bottomed at 17.5% in Q1 FY27 and recovered to 18.5% in Q2 FY27. Profit for Q2 FY27 was lower than the ₹5,186.55 crore reported in Q2 FY26, while revenue reached a new high in the series.
Which businesses drove the quarter?
FMCG-Cigarettes reported revenue of ₹16,237.11 crore, up 72.5% from ₹9,414.34 crore in Q2 FY26, and EBIT of ₹4,044.49 crore. Its reported EBIT was lower than ₹5,462.1 crore in the year-ago quarter, while EBIT margin was 24.9%. The filing said higher excise duty makes revenue not strictly comparable.
FMCG-Others reported revenue of ₹7,218.36 crore, up 19.1% from ₹6,059.12 crore, and EBIT of ₹576.69 crore against ₹438.72 crore. EBIT margin was 8.0%. The filing said continuing brand-building costs for personal care and branded packaged food products are reflected in this segment.
Agri Business reported revenue of ₹4,550.6 crore, up 12.7% from ₹4,037.8 crore, and EBIT of ₹518.41 crore against ₹453.61 crore. EBIT margin was 11.4%. Paperboards, Paper & Packaging reported revenue of ₹3,017.45 crore, up 35.9% from ₹2,220.32 crore, and EBIT of ₹273.32 crore against ₹181.39 crore, with an EBIT margin of 9.1%.
The Others segment reported revenue of ₹1,449.87 crore, up 16.5% from ₹1,244.62 crore, and EBIT of ₹176.1 crore against ₹182.65 crore. Its EBIT margin was 12.1%. Century Pulp and Paper was included in the Paperboards, Paper & Packaging segment from 1 August 2026, making that segment not comparable with previous periods.
| Segment | Revenue | Revenue YoY | EBIT | EBIT margin |
|---|---|---|---|---|
| FMCG - Cigarettes | 16,237 | +72.5% | 4,044 | 24.9% |
| FMCG - Others | 7,218 | +19.1% | 576.69 | 8.0% |
| Agri Business | 4,551 | +12.7% | 518.41 | 11.4% |
| Paperboards, Paper & Packaging | 3,017 | +35.9% | 273.32 | 9.1% |
| Others | 1,450 | +16.5% | 176.10 | 12.1% |
Source: Company's results filing (XBRL segment data).
What else did the company announce?
On 2 November 2026, ITC’s board approved the scheme to amalgamate Sproutlife Foods Private Limited, a wholly owned subsidiary, with ITC under Sections 230 and 232 of the Companies Act, 2013. The scheme is subject to necessary approvals and will take effect from 1 April 2026. ITC will not issue fresh shares because Sproutlife’s equity shares held by ITC will be cancelled and extinguished, and ITC’s shareholding pattern will not change.
The board said the proposed amalgamation would enable seamless integration, support optimal deployment of financial, managerial and operational resources, improve capital allocation and reduce the number of operating entities. It also approved the unaudited standalone and consolidated results, balance sheet, cash-flow statement and segment information, and noted the statutory auditors’ unmodified limited-review reports.
ITC completed the acquisition of the pulp and paper business operated as Century Pulp and Paper on 1 August 2026. It also disclosed that 10,48,850 ordinary shares of ₹1 each were issued under employee stock option schemes during the quarter, increasing paid-up share capital to ₹1,253,05,17,081.
How did ITC shares react?
The filing appeared after market hours. From the price when it appeared, the stock fell 0.7% after 5 minutes, 0.9% after 15 minutes and 1.4% after 30 minutes. On the reaction day, ITC closed 2.9% above its pre-results close of ₹265.25, against a median move of 0.8% for other Fast Moving Consumer Goods stocks.
By the next day’s close, the stock was up 5.7% from its pre-results close. The median move for other Fast Moving Consumer Goods stocks was 2.3%, leaving ITC ahead of the sector median by 3.4 percentage points. The reaction-day move was 2.1 percentage points above the sector median.
Earlier results-day moves were mixed: ITC gained 2.2% on 31 July 2026, fell 0.1% on 21 May 2026 and rose 1.1% on 29 January 2026. Earlier moves also included 0.1% on 30 October 2025, no change on 1 August 2025, 2.5% on 22 May 2025 and 2.5% on 24 October 2024, with a fall of 2.9% on 6 February 2025.
| After the filing | Stock | Fast Moving Consumer Goods median |
|---|---|---|
| 5 minutes | −0.7% | |
| 15 minutes | −0.9% | |
| 30 minutes | −1.4% | |
| Reaction day | +2.9% | +0.8% |
| Next day | +5.7% | +2.3% |
Minutes are measured from the price when the filing appeared; days from the previous close. Source: MarketPing price-reaction measurement.
| Results filed on | Stock on the reaction day |
|---|---|
| 31 July 2026 | +2.2% |
| 21 May 2026 | −0.1% |
| 29 January 2026 | +1.1% |
| 30 October 2025 | +0.1% |
| 1 August 2025 | +0.0% |
| 22 May 2025 | +2.5% |
| 6 February 2025 | −2.9% |
| 24 October 2024 | +2.5% |
Source: MarketPing price-reaction measurement.
Quick answers
What was ITC's revenue in Q2 FY27?
Revenue from operations was ₹30,578 crore, up 43.9% from ₹21,256 crore in Q2 FY26 (consolidated).
Did ITC make a profit in Q2 FY27?
Yes. Net profit was ₹4,229 crore, against a net profit of ₹5,187 crore in Q2 FY26.
What was ITC's EPS in Q2 FY27?
Basic earnings per share were ₹3.32, against ₹4.09 in Q2 FY26.
How did ITC shares react to the Q2 FY27 results?
On the reaction day the stock moved +2.9% from the previous close; the median Fast Moving Consumer Goods stock moved +0.8%.
When did ITC announce its Q2 FY27 results?
On 2 November 2026, in a filing to the NSE.
Sources
- Board Meeting Intimation for Unaudited Standalone And Consolidated Financial Results Of The Company For The Quarter And Six Months Ended 30Th September, 2026 (BSE, 16 October 2026) · PDF
- Outcome of Board Meeting (NSE, 2 November 2026) · PDF
- Outcome of Board Meeting (NSE, 2 November 2026) · PDF
How this was written: every figure in the tables and charts is calculated from the company’s filed results (XBRL) and MarketPing’s price measurements. The text is drafted with AI from those figures and the filings, and a checker removes any sentence carrying a number it cannot trace to them. How we write these.
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