ITC Q2 Results FY27 Preview: Diversified conglomerate ITC Ltd is expected to report a subdued financial performance for the July-September quarter of FY27, with standalone net profit projected to decline over 20 per cent year-on-year (YoY), weighed down by weakness in its cigarette business, according to ET Now Research.
The company is scheduled to announce its Q2 FY27 financial results today, November 2, 2026, after market hours. Investors will closely monitor the impact of higher cigarette taxes, price increases, volume trends and the performance of its non-cigarette FMCG business.
Net revenue, calculated after excluding excise duty, is projected to fall 2.8 per cent YoY to Rs 17,520 crore from Rs 18,021 crore.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are expected to decline 19.2 per cent to Rs 4,750 crore from Rs 5,881 crore in the year-ago period.
Meanwhile, the EBITDA margin is estimated to contract by 550 basis points to 27.1 per cent from 32.6 per cent. The margin estimates are based on reported revenue without deducting excise duty.
ITC cigarette business: Revenue may fall up to 23%
The cigarette business is expected to remain the biggest drag on ITC’s quarterly performance, according to ET Now Research.
Revenue from the FMCG-cigarettes segment is projected to decline 22-23 per cent YoY, while earnings before interest and tax (EBIT) from the segment may fall approximately 27 per cent.
Cigarette volumes are estimated to decline around 8 per cent compared with the corresponding quarter last year.
ITC has implemented price increases across approximately 75 per cent 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 per cent.
The impact of higher taxes and pricing decisions on cigarette demand, sales volumes and profitability will therefore remain a key area of focus.
ITC FMCG business: Non-cigarette revenue may rise 14%
Despite the anticipated weakness in cigarettes, ITC’s other FMCG businesses are expected to register growth during the September quarter.
According to ET Now Research, revenue from the FMCG-others segment is projected to increase 11-14 per cent YoY, while segment EBIT is estimated to grow approximately 9 per cent.
The performance of this segment will be closely watched to assess whether growth in ITC’s non-cigarette consumer businesses can partly offset the pressure on its cigarette operations.
ITC agri and paperboards business outlook
ET Now Research expects ITC’s agri business to report modest revenue growth of approximately 2 per cent YoY during the quarter.
Meanwhile, revenue from the paperboards segment is projected to rise 9-11 per cent compared with the year-ago period.
These businesses are expected to provide some revenue support, even as the cigarette segment faces significant pressure.
ITC Q2 Results FY27: Six key factors to watch
According to ET Now Research, six key factors will be in focus when ITC announces its September-quarter earnings: the impact of the cigarette tax hike, the nature of price increases and the possibility of further hikes, cigarette volume trends and product mix, competitive intensity, raw material cost trends, and the outlook for the agri business.
Management commentary on pricing strategy and the sustainability of demand across business segments could provide further clarity on ITC’s performance in the second half of FY27.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)