ITC reports profit decline as cigarette sales fall, FMCG revenue hits 14-quarter high
ITC posted a net profit of Rs 5,126 crore for Q2 FY27, while revenue rose 44% to Rs 30,578 crore, with cigarette volumes pressured by higher taxes and fast-moving consumer goods sales reaching a 14-quarter peak.
ITC Ltd announced a net profit of Rs 5,126 crore for the second quarter of fiscal year 2027, down from the previous period. The company said revenue from operations increased 44 percent to Rs 30,578 crore, driven by growth in its fast-moving consumer goods (FMCG) segment, which recorded its highest sales in 14 quarters.
The firm attributed the continued pressure on cigarette volumes to an "unprecedented increase in tax," according to a corporate release. The higher tax burden has reduced the quantity of cigarettes sold during the quarter.
ITC’s diversified business model, which includes FMCG, hotels, paper, and packaging, helped offset the decline in its tobacco segment, leading to overall revenue growth despite the drop in cigarette sales.