Diversified conglomerate ITC Ltd reported a net profit of Rs 5,186.5 crore for the second quarter (Q2), reflecting resilience across its core businesses despite a challenging economic backdrop. The company’s robust performance was supported by steady growth in its FMCG, hotels, and agri-business divisions, even as its cigarettes segment faced subdued demand. Revenue came in at Rs 17,705.5 crore, demonstrating stability amid cost pressures and market headwinds. ITC’s focus on premiumization, digital integration, and sustainability initiatives continues to strengthen its competitive position in India’s evolving consumer goods landscape.
Revenue and Profit Performance
In the quarter ended September 2025, ITC posted a consolidated net profit of Rs 5,186.5 crore, a moderate increase from Rs 5,130.1 crore in the corresponding period last year. The company’s revenue from operations stood at Rs 17,705.5 crore, slightly higher than the previous year’s Rs 17,263.9 crore, reflecting consistent top-line growth across major business verticals.
While the headline numbers showed stability, analysts noted that input cost pressures and rural demand sluggishness continued to weigh on overall volume growth. Nonetheless, ITC maintained its strong margins, thanks to operational efficiency, portfolio diversification, and strategic pricing actions.
Segment-Wise Performance
FMCG Business:
The company’s FMCG segment, excluding cigarettes, remained a key growth driver, registering mid-single-digit growth. Categories such as packaged foods, personal care, and hygiene products continued to gain traction, supported by strong brand equity and wider distribution. ITC’s investments in innovation and product launches under brands like Aashirvaad, Sunfeast, and Fiama contributed to sustained consumer engagement.
Cigarettes Segment:
The cigarette business, which still contributes a significant portion of ITC’s revenue, witnessed muted growth due to cautious consumer spending and heightened competition in select markets. Despite these challenges, the segment maintained profitability through efficient supply-chain management and calibrated price increases.
Hotels and Agri-Business:
ITC’s hotels division posted another quarter of robust performance, benefitting from strong occupancy levels, higher average room rates, and the ongoing revival of business and leisure travel. The agri-business segment also showed resilience, supported by value-added exports and a diversified sourcing strategy.
Operational Efficiency and Strategic Initiatives
ITC’s consistent focus on cost optimization, digital transformation, and supply-chain efficiency helped offset inflationary pressures. The company has been accelerating its sustainability agenda, particularly through renewable energy adoption and waste-reduction initiatives across its manufacturing facilities.
The management reaffirmed its commitment to expanding the FMCG footprint and scaling up newer business verticals such as ITC MAARS (Agri-Tech platform) and ITC Next (digital commerce ecosystem). These initiatives are expected to play a crucial role in driving long-term growth and diversifying revenue streams beyond traditional categories.
Market Reaction and Investor Outlook
Following the results, ITC’s stock traded steady on the Bombay Stock Exchange (BSE), with analysts describing the earnings as “in line with expectations.” Market experts highlighted the company’s strong cash flows, dividend record, and balanced business portfolio as key strengths in an otherwise uncertain macroeconomic environment.
With the festive season expected to boost FMCG sales in the coming quarter, and the hotels division continuing to recover, ITC remains well-positioned to sustain growth momentum. Analysts foresee margin expansion opportunities as input prices normalize and operational leverage improves.
Conclusion: Stability Amid Transition
ITC’s Q2 performance underscores its ability to balance legacy businesses with emerging growth drivers. While the cigarettes segment remains a profit cornerstone, the company’s growing FMCG, hospitality, and agri-tech initiatives signal a clear shift toward a more diversified, future-ready portfolio.
Comments