ITC Q2 net profit inches up 3% to ₹5,187 crore, revenue down 2%

ITC Ltd. for the second quarter ended September 30, 2025 reported 3% growth in consolidated net profit to ₹5,187 crore as compared with ₹5,054 crore a year ago. 

Consolidated revenue for the quarter dropped 2% Year on Year (YoY) to 21,047 crore. 

The company said it operating performance was led by Group companies ITC Infotech India Ltd, ITC Hotels Ltd. It said its subsidiary, Surya Nepal Private Ltd delivered ‘resilient performance’ amidst disruptions in Nepal during the September ’25 quarter. 

The FMCG segment sustained its revenue growth momentum amidst operational challenges. It was up 8% YoY excluding Notebooks.

The company said excessive rains in many parts of the country and transition to the new GST regime posed operational challenges causing short-term business disruptions. During the quarter Staples, Dairy, Premium Personal Wash & Agarbattis drove growth and strong performance continued in premium portfolio and NewGen channels. 

The Notebooks industry remained impacted on account of low-priced paper imports and opportunistic play by local/regional players, it said adding GST rates were reduced in over 50% of FMCG portfolio and the benefits were passed on to the consumers.

While the Cigarettes segment net revenue grew 6.8% YoY, the Agri Business segment performance reflected timing difference and high base effect. 

“High frequency indicators for the quarter suggest mixed trends. While rural demand continued to demonstrate resilience, urban consumption witnessed uptick. On the other hand, industrial growth, core sector growth, automobile sales, credit growth and electricity & fuel consumption remained relatively subdued,” the company said.

“Lower inflation, reduction in interest rates & liquidity support by RBI, income tax cuts announced in the recent Union Budget along with front loading of Government expenditure, and the recent reduction in GST rates across a wide range of products are expected to progressively bolster consumption,” it said.

“Excessive rains in many parts of the country and transition to new GST rates posed operational challenges, especially for the FMCG categories, causing short-term business disruptions during the quarter. Notwithstanding such transitory factors, the Company delivered resilient performance during the quarter,” it added.