ITC Ltd reported a drop in consolidated net profit for the September quarter of FY27, as a steep fall in earnings from cigarettes outweighed strong growth in its FMCG, paper and agriculture businesses.
Consolidated net profit came in at Rs 4,229 crore, down 18.5% from Rs 5,187 crore in the same quarter a year earlier. Net revenue rose 5% to Rs 20,454 crore from Rs 19,455 crore.
Operating earnings were also under pressure. Consolidated EBITDA fell 15.7% to Rs 5,645 crore from Rs 6,695 crore.
Cigarettes remain the main drag
The cigarette business was the biggest drag on the numbers. Segment profit dropped 27.2% to Rs 3,813 crore from Rs 5,241 crore a year ago, while net cigarette revenue declined 21%.
ITC blamed what it called an unprecedented increase in cigarette taxes, which has continued to weigh on volumes in the legal industry.
The company said it has launched new variants and strengthened its product range to defend market share and counter illicit and smuggled cigarettes. It added that the cigarette business performed better than in the previous quarter.
Gross cigarette revenue, however, jumped 78.1% to Rs 15,536 crore. This reflects the higher taxes that are counted in gross sales.
FMCG posts its best growth in 14 quarters
ITC’s non-cigarette FMCG business recorded its fastest revenue growth in 14 quarters, helped by higher sales of packaged foods, personal care items and stationery.
Consolidated revenue in the FMCG-Others segment grew 19% year-on-year, the fourth straight quarter of double-digit growth. On a like-for-like basis, revenue was up 17.3%, and growth excluding the atta business was 23%.
Biscuits, snacks, noodles, spices, salt, frozen snacks, homecare products and notebooks all grew by more than 20%. Dairy and personal wash products grew in the high teens.
For the standalone FMCG-Others business, revenue rose 15.7% to Rs 6,967 crore and segment profit climbed 27.8% to Rs 558 crore. The EBITDA margin improved by more than 50 basis points over both the year-ago quarter and the previous quarter, even with higher input costs.
ITC said a better product mix, cost control and carefully calibrated price increases protected profitability. Its digital-first and organic brands, including Yoga Bar, Prasuma, Mother Sparsh and 24 Mantra, grew revenue by more than 70%. Their combined annual revenue run rate is above Rs 1,800 crore.
Paper and packaging rebound
The paperboards, paper and packaging segment staged a sharp recovery. Revenue rose 35.9% to Rs 3,016 crore from Rs 2,220 crore, and profit increased 47.6% to Rs 282 crore.
These figures include the Century Pulp and Paper undertaking, whose acquisition was completed on August 1, 2026. Without the acquisition, segment revenue grew 10% and profit rose 52%. On a like-for-like basis, the profit margin widened by 320 basis points.
ITC said better demand, stronger exports and price hikes helped absorb higher raw material costs. Wood prices stayed high because of lower-than-expected harvests and demand from competing industries.
Agriculture
The agriculture business reported 12% revenue growth to Rs 4,452 crore, driven by value-added products and leaf tobacco exports. Segment profit rose 11.2% to Rs 511 crore.
The company said trade disruptions linked to the West Asia conflict and delayed customer orders continued to affect agricultural exports.
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