ITC's board of directors is scheduled to meet on Monday, 2 November, 2026, to consider and approve the unaudited standalone and consolidated financial results for the quarter and half-year ended 30 September, 2026. The company disclosed this board meeting date in an exchange filing on October 16, though it has not specified the exact time of the results announcement. Investors should watch for the company's exchange filing for the official earnings release. The September-quarter earnings are particularly important as investors assess how ITC is navigating the impact of the new cigarette tax regime, which has put pressure on cigarette volumes and profitability. While growth in its non-cigarette businesses could offer some support, brokerages expect the company's consolidated earnings to remain under pressure.
The cigarette segment faces unprecedented challenges with cigarette volumes estimated to decline around 7-8% year-on-year during the September quarter, according to Nuvama estimates. ITC's cigarette business reported a 78% YoY increase in segment revenue to ₹15,536.1 crore in the September quarter, though segment profit before interest and tax (PBIT) fell 27% to ₹3,813.5 crore, reflecting the impact of higher taxation and the company's calibrated pricing response. The company has implemented price increases across approximately 75% of its cigarette portfolio, with hikes in the remaining portfolio expected during the second half of FY27. The cumulative blended price increase over the past six months is estimated at 32-34%, though this has not been sufficient to offset volume pressures. Kotak estimates cigarette volumes to decline 9% Y-o-Y versus a 5% decline in Q1, with EBIT trajectory expected to improve further in Q3 as the company implements potential third and final price hikes. The cigarette business's EBIT trajectory is expected to improve further in Q3, with the decline moderating to 15-20%, supported by the recent 10% price hike in KSFT Slims and greater focus on EBIT-neutral alternatives. The company noted that legal industry volumes in its cigarettes business remained under pressure due to an unprecedented increase in taxes, adopting a calibrated response to mitigate the risk of disproportionate shift to illicit trade.
ITC's fast-moving consumer goods business is expected to remain a relatively strong performer during the September quarter. The non-cigarette FMCG business continued to deliver strong growth, with segment revenue rising 16% YoY to ₹6,967.2 crore and segment PBIT increasing 28% to ₹558.3 crore. The segment's growth was broadbased and had hit a 14-quarter high, with over 20% jump in revenue from biscuits, snacks and packaged staples. Kotak notes that EBIT margin is estimated at 7%, down 40 basis points Y-o-Y, impacted by inflation in edible/palm oil, packaging material, and laminates. The agri business is expected to report modest revenue growth of approximately 2% Y-o-Y during the quarter, while revenue from the paperboards segment is projected to rise 36% compared with the year-ago period. According to the latest results, ITC's FMCG segment sustained strong double-digit growth, with biscuits, snacks, noodles, spices, salt, frozen snacks, homecare and notebooks recording growth of over 20%. Dairy and personal wash products posted high teens' growth, while the segment's EBITDA margin expanded by over 50 basis points both annually and sequentially, with higher input costs mitigated through better portfolio mix, cost management initiatives and calibrated pricing actions. The company's digital-first and organic brands portfolio grew over 70% year-on-year to top an annualized revenue rate of ₹1,800 crore, including acquired brands like Prasuma, Meatigo, 24 Mantra and Yogabar. The fresh foods business of cloud kitchens also grew 53% from a year ago to cross ₹320 crore revenue.
ITC reported standalone net profit of ₹4,137.1 crore, down 20% year-on-year, while standalone revenue from operations jumped 45% to ₹28,317.7 crore. Standalone EBITDA fell 15.7% year-on-year to ₹5,645 crore. EBITDA margin contracted to 28% for the reporting quarter, which was 665 basis points lower than a year ago, but 134 basis points higher from the previous quarter, according to Nuvama analysts. Total income increased to ₹29,125.19 crore from ₹20,340.97 crore after including other income of ₹807.52 crore. Total expenses surged to ₹23,617.78 crore from ₹13,581.70 crore, indicating significant cost pressures during the quarter. Profit before tax declined to ₹5,481.75 crore from ₹6,847.35 crore in the year-ago period. The results were announced after market hours on Monday, with ITC shares closing 0.15% higher at ₹266 apiece on the BSE, underperforming the benchmark Sensex which gained 1.66%. The results align with analyst expectations of consolidated net profit declining 8-11% Y-o-Y to between ₹4,550-4,700 crore, with consolidated revenue ranging from a 3% decline to a 5% rise Y-o-Y at ₹18,900-20,510 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) are expected to decline 28.9% to ₹4,445 crore according to Axis Direct, with EBITDA margin contracting by 889 basis points to 26.3%.
ITC shares were largely flat at ₹266.5 in early trade on Tuesday morning, after the company reported a 20% year-on-year fall in Q2 FY27 net profit, weighed down by higher cigarette taxes and volume pressures. The stock had closed at ₹266.40 on Monday, gaining 0.3% ahead of the quarterly earnings announcement. The stock has declined 26.8% so far in 2026, significantly underperforming the Nifty 50, which has fallen 10.4% over the same period. ITC's market capitalisation stood at ₹3.34 lakh crore at Monday's close. ITC shares closed 0.15% higher at ₹266 apiece on the BSE on Monday, underperforming the benchmark Sensex which gained 1.66%. The stock opened at ₹265.70 and touched an intraday high of ₹269.20 and a low of ₹263.95, with its Volume-Weighted Average Price standing at ₹265.90. The stock has been stuck in a narrow range for two months after falling from about ₹290 in early August to near ₹255 by the end of the month. ITC is now testing the upper part of its range and trading above its 20-day EMA, though it slipped back below the 50-day EMA during Friday's session. The options market expects a move of about ±4% by expiry, with November futures at ₹268 putting the expected range at roughly ₹257 to ₹279. In the last 12 quarters, ITC's next-day move never went beyond ±2.7%, confirming its calm nature. With the stock trading above its 20-day EMA and below the 50-day EMA, the broader trend remains weak despite recent sideways movement.
