ITC consolidated net profit falls to Rs 4,229 crore in Q2 FY27
The company reported a decline in profit despite revenue growth driven by its FMCG, agriculture and paper businesses.
ITC Ltd reported a consolidated net profit of Rs 4,229 crore for the September quarter of FY27, marking a decline from Rs 5,187 crore in the same period last year, according to reports by The Economic Times and Business Standard.
The company's revenue from operations rose to Rs 30,578.4 crore, up from Rs 21,255.86 crore a year earlier, according to Business Standard.
The decline in profit was attributed to a sharp fall in earnings from the cigarette business, which weighed on overall profitability despite growth in other segments.
The cigarette segment profit declined 27.2 per cent to Rs 3,813 crore, while net cigarette revenue fell 21 per cent, The Economic Times reported.
ITC attributed the weakness in the cigarette business to an unprecedented increase in cigarette taxes, which pressured legal industry volumes.
The company's non-cigarette FMCG business saw its fourth consecutive quarter of double-digit growth, with the FMCG-Others segment revenue rising 19 per cent year-on-year.
The paperboards, paper and packaging business also reported a recovery, with segment revenue increasing 35.9 per cent to Rs 3,016 crore, according to The Economic Times.
The agriculture business reported 12 per cent revenue growth to Rs 4,452 crore, though trade disruptions linked to the West Asia conflict affected exports.