Reporting an 18.45 per cent reduction in its consolidated profit to ₹4,229.33 crore for the September quarter of FY2026-27, ITC attributed the decline to higher expenses and raw material inflation due to the Middle East war.
Last year, the conglomerate had posted a consolidated profit of ₹5,186.55 crore in the July-September quarter. However, its revenue from operations was ₹30,578.4 crore, corresponding to a 43.85 per cent increase in the second quarter of FY27 compared to ₹21.255.86 crore a year ago.
ITC said in its earnings statement that it saw "robust growth across all Non-Cigarette Business segments " and recorded a "fourth consecutive quarter of double-digit revenue growth," with EBITDA margin expanding 50 bps YoY amid inflationary pressures.
It was also observed that "strong recovery momentum" in the Paper Segment was noticed and its Agri Business also delivered "robust growth" despite West Asia-led trade disruptions.
ITC's total expenses were ₹25,462.44 crore, up 69.6 per cent YoY in the September quarter. Its total consolidated income, including other income, was ₹31,085.76 crore, up 42.33 per cent in Q2/FY27.
"The operating environment continued to be characterised by heightened uncertainty amidst renewed geopolitical tensions and trade disruptions. Crude oil and crude-linked input prices remained elevated, while supply chain disruptions and higher freight costs persisted," said ITC.
Reasons for the decline in net profit:
As per ITC, intensified global inflationary pressures, driven by higher energy and food prices, alongside elevated sovereign bond yields and tighter financial conditions are some of the reasons to be listed that caused immense pressure to the diversified group.
" In India, headline inflation moved up, driven by a broad-based increase across food, fuel and core components," it said.
