ITC Q2 results: profit falls 19% to Rs 4,168 crore as cigarette excise duty bites

ITC Ltd’s consolidated profit attributable to owners fell 19% to Rs 4,168 crore in the quarter ended 30 September 2026 (Q2 FY27), from Rs 5,126 crore a year earlier. The ITC Q2 results, approved by the board on 2 November 2026, show the first full effect of the higher excise duty on cigarettes. Standalone profit fell 20% to Rs 4,137 crore from Rs 5,176 crore.

ITC Q2 results: key numbers

The table uses consolidated figures in Rs crore.

Measure (Rs crore)	Q2 FY27	Q2 FY26	Change
Revenue from operations	30,578	21,256	44%
Excise duty (expense)	10,310	1,754	488%
Profit before exceptional items and tax	5,720	6,891	-17%
Profit attributable to owners	4,168	5,126	-19%
Earnings per share (Rs)	3.32	4.09	-19%

Revenue looks much higher, but most of that is tax. ITC’s notes say the government raised GST and central excise duty on cigarettes from 1 February 2026, after the GST compensation cess ended. Accounting rules keep excise duty inside reported revenue, while GST is left out, so revenue and the excise expense both jumped. The company says these figures are not strictly comparable with earlier periods. Taking excise duty out of both years, consolidated revenue was about Rs 20,269 crore against Rs 19,502 crore, a rise of about 4% by our calculation.

Cigarette profit falls, other businesses grow

The standalone segment table shows where the profit fell. The cigarettes segment earned Rs 3,813 crore before interest and tax, down 27% from Rs 5,241 crore. The other segments grew:

• FMCG others (foods, personal care and similar products): revenue up 16% to Rs 6,967 crore, segment result up 28% to Rs 558 crore.
• Agri business: revenue up 12% to Rs 4,452 crore, segment result up 11% to Rs 511 crore.
• Paperboards, paper and packaging: revenue up 36% to Rs 3,016 crore. This includes the Century Pulp and Paper business, which ITC took over on 1 August 2026, so the numbers are not comparable with last year.

One-time items

Exceptional items were a charge of Rs 25.66 crore, for costs linked to the Century Pulp and Paper acquisition. A year earlier, ITC booked an exceptional gain of Rs 88.08 crore from the final settlement of an insurance claim on leaf tobacco stock lost in a warehouse fire.

Sproutlife merger

The board also approved a scheme to merge Sproutlife Foods, which sells the Yoga Bar brand of bars, muesli, oats and peanut butter, into ITC, with effect from 1 April 2026, subject to approvals. ITC made Sproutlife a wholly owned subsidiary on 28 September 2026. Sproutlife had turnover of Rs 451.71 crore in FY26.

What to watch next

Watch whether cigarette volumes and prices adjust to the higher duty over the next two quarters, and how the paper business performs with Century Pulp and Paper included for a full quarter. For other big results this season, see Power Grid’s Q2 results and more results news.