ITC’s September-quarter profit rose 4 per cent year-on-year as strong cigarette and FMCG sales offset operational disruptions from rains and GST transition, with margins improving and paper, agri units stabilising
Diversified conglomerate ITC reported a 4.1 per cent year-on-year rise in standalone net profit for the quarter ended 30 September 2025, supported by sustained demand across its cigarettes and fast-moving consumer goods (FMCG) businesses.
The company’s standalone net profit rose to Rs 5,180 crore from Rs 4,975 crore in the same quarter last year. Revenue, excluding the agri business, grew 7.1 per cent to Rs 19,148 crore, according to a regulatory filing. Operating margin improved by 185 basis points to 35.1 per cent.
Revenue from the FMCG segment, excluding notebooks, rose 8 per cent, driven by growth in staples, dairy and personal care categories. ITC said the benefit of recent Goods and Services Tax (GST) rate reductions across nearly half its product portfolio had been passed on to consumers.
Cigarette revenue increased 6.8 per cent during the quarter, as premium offerings and market interventions helped offset higher leaf tobacco costs. The company noted that procurement prices have begun to moderate in the current crop cycle.
The paperboards, paper and packaging business recorded a 17 per cent sequential rise in profit, aided by higher volumes and early signs of easing wood prices. Revenue from the agri business was lower due to timing differences, though performance in the first half of the year remained robust.
On a consolidated basis, ITC’s revenue, excluding the agri business, grew 7.9 per cent, supported by strong showings from ITC Infotech, ITC Hotels and Surya Nepal.
The company also highlighted the progress of its FoodTech vertical, which operates through 60 cloud kitchens across five cities and reported a gross merchandise value of Rs 90 crore in the first half of FY26.
ITC said it expects recent tax cuts, moderating inflation and supportive monetary policy to bolster consumer demand in the coming quarters.
