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Largely in line with street estimates, diversified conglomerate ITC Ltd on Thursday posted a 4.09 per cent year-on-year increase in standalone net profit in the second quarter of this fiscal at ₹5,179.82 crore, as profitability of its non-cigarettes FMCG business, and paperboards and paper business came under pressure during the period. The Kolkata-headquartered conglomerate had posted a net profit of ₹4,975.85 crore in Q2FY25 on the basis of continued operations. Notably, the conglomerate’s hotel business was demerged into ITC Hotels with effect from January 1, 2025. During the second quarter of this fiscal, ITC’s revenue from operations on the basis of continuing operations fell 2.4 per cent y-o-y at ₹19,381.99 crore from ₹19,858.75 crore in the year-ago period, on the back of a 31.21 per cent y-o-y decline in agri business revenue. The cigarettes-to-soap maker’s total expenses declined 4.24 per cent y-o-y at ₹13,516.57 crore from ₹14,115.66 crore in Q2FY25. The company, in a statement said, excluding agri business, its gross revenue for the period under review grew 7.1 per cent y-o-y at ₹19,148 crore. Its EBITDA for the second quarter this fiscal grew 2.1 per cent y-o-y at ₹6,252 crore, compared to ₹6,123 crore for the same period in the last fiscal. Excluding the paper business, EBITDA was up by 3.2 per cent y-o-y. Revenue from the company’s cigarette business rose 6.67 per cent y-o-y to ₹8,722.83 crore in Q2, while operating profit from the segment increased by 4.32 per cent y-o-y to ₹5,240.66 crore during the period, according to the stock exchange filing. This strong performance sustained in differentiated and premium offerings. During the quarter under review, its non-cigarette FMCG business registered 6.93 per cent y-o-y growth in revenue to ₹5,964.44 crore, while the segment posted a marginal 0.32 per cent y-o-y decline in operating profit at ₹440.35 crore during this period. “Excessive rains in many parts of the country and transition to the new GST regime posed operational challenges causing short-term business disruptions,” the company said in the statement, adding the notebooks industry remained impacted on account of low-priced paper imports and opportunistic play by local and regional players. GST rates were reduced in over 50 per cent of the FMCG portfolio to pass on the benefits to the consumers, ITC said. In Q2FY26, the company’s agri business witnessed a 31.21 per cent y-o-y decline in revenue to ₹3,976.24 crore, whereas the segment posted a marginal 0.96 per cent y-o-y rise in operating profit to ₹459.10 crore. The agri business segment performance during the quarter reflected timing difference and high base effect, the company pointed out. The paperboards, paper & packaging business of the conglomerate witnessed a 5 per cent y-o-y growth in revenue at ₹2,219.92 crore during the second quarter this fiscal. However, the business posted a 21.22 per cent y-o-y fall in its operating profit at ₹191.01 crore during the period. “Overall, the Industry remains impacted by low-priced supplies, high wood prices and subdued realisation,” it added. Published on October 30, 2025
