ITC Q2 results: Net profit falls 20% to Rs 4,137 crore, revenue rises 44%

However, the increase largely reflected higher excise duty included in reported revenue, limiting comparisons with the previous year. Tax change lifts reported revenue ITC said cigarette taxes were revised from February 1, 2026, following the expiry of GST compensation cess. Unlike GST and compensation cess, excise duty is included in gross revenue. Excise duty surged to Rs 10,309.77 crore from Rs 1,754.23 crore.

After deducting excise duty, revenue from operations increased about 3.9% to Rs 20,268.63 crore from Rs 19,501.63 crore, calculations based on the filing show. 44 crore from Rs 15,016.02 crore, including the higher duty. Profit before exceptional items and tax declined to Rs 5,720.28 crore from Rs 6,890.60 crore. Other income declined to Rs 507.36 crore from Rs 584.40 crore, while employee benefit expenses rose to Rs 1,886.52 crore from Rs 1,654.49 crore.

Cigarette earnings fall, other FMCG grows Cigarettes remained ITC’s largest earnings contributor, but consolidated segment profit fell 26% to Rs 4,044.49 crore from Rs 5,462.10 crore. Reported segment revenue, which was affected by the tax change, stood at Rs 16,237.11 crore against Rs 9,414.34 crore. The other FMCG business reported revenue growth of 19.1% to Rs 7,218.36 crore, while segment profit rose 31.4% to Rs 576.69 crore.

ITC said this segment included Sproutlife Foods from April 1, 2026, making the figures non-comparable with earlier periods. The board also approved its proposed amalgamation with ITC, subject to necessary approvals. 7% to Rs 4,550.60 crore, with segment profit rising 14.3% to Rs 518.41 crore. Paperboards, paper and packaging revenue rose 35.9% to Rs 3,017.45 crore, while segment profit increased 50.7% to Rs 273.32 crore.

These figures included Century Pulp and Paper from August 1, 2026, following its acquisition, affecting year-on-year comparability. ITC booked an exceptional acquisition-related expense of Rs 25.66 crore, against an exceptional insurance settlement gain of Rs 88.08 crore a year earlier.