ITC Limited, established in 1910, is India’s largest cigarette manufacturer and a diversified conglomerate operating across FMCG, Paperboards, Packaging, and Agri-Business segments.
Q2 FY26 Financial Overview:
- Revenue for Q2 FY26 was ₹1,520 crore, down 6.11% from ₹1,619 crore last year.
- Total expenses decreased 6.27% to ₹1,092 crore from ₹1,165 crore, reflecting disciplined cost management.
- Net profit declined by 16.96% to ₹328 crore from ₹395 crore in the same quarter last year.
- Earnings per share (EPS) fell 17.08% to ₹12.04 from ₹14.52.
Key Highlights:
- The decline in profit was driven by increased excise duties, higher marketing spends, and intense competition from rivals like HUL and Dabur.
- Despite softer revenues, ITC’s margins remained stable due to efficient cost controls and a premiumization strategy.
- The company’s FMCG foods segment showed resilience, especially in packaged foods and quick-service restaurant supplies.
Outlook:
- Management expects gradual recovery in revenue growth driven by portfolio innovation, expansion into new categories, and premium product offerings.
- Focus remains on cost-efficiency, brand repositioning, and increasing share in high-margin segments like packaged foods and personal care.
- ITC plans to increase advertising and branding investments to regain market share and drive long-term sustainable growth.
- The upcoming festive season is expected to boost sales in several categories, aiding a potential recovery in profit margins in the next quarter.
Despite the profit decline in Q2 FY26, ITC continues to leverage its diversified portfolio, strong brand equity, and market leadership to recover and expand in the competitive FMCG landscape during the remainder of FY26.
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