ITC stock faces earnings pressure as cigarette profit drops 27%

Published on 11/03/2026 at 10:53 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

ITC stock is in focus after quarterly profit fell as higher cigarette prices weakened demand. Revenue still rose on broader consumer-goods activity.

Taxes reshape the quarterly picture

ITC reported second-quarter profit of 41.37 billion rupees for the period ended September 30, down from 51.76 billion rupees a year earlier.
Higher cigarette prices weakened demand, while raw-material inflation linked to the Middle East conflict added to earnings pressure.
Revenue rose to 283.18 billion rupees, supported by the company's broader consumer-goods portfolio.

ITC, INE154A01025, Illustration mit AI erstellt.

ITC reported a weaker second quarter as higher cigarette prices reduced demand and pressure from raw-material inflation weighed on earnings. The result covers the quarter ended September 30, 2026, and was reported on Monday, November 2.

According to Reuters, ITC's profit fell to 41.37 billion rupees from 51.76 billion rupees a year earlier. Profit from the cigarette business declined 27 percent, making the tobacco unit the main drag on the quarter.

Cigarette pricing weighs on earnings

ITC and other cigarette makers have raised prices in recent months. The higher prices affected demand, while inflation in key inputs such as edible oil and sugar increased pressure across consumer-goods operations.

Revenue moved in the opposite direction, rising to 283.18 billion rupees from 194.42 billion rupees a year earlier. The increase highlights the support provided by ITC's broader consumer-goods portfolio, although the cigarette business remains central to group profitability.

For investors, the quarter puts pricing, legal cigarette volumes and input costs at the center of the next earnings discussion. The performance of non-cigarette businesses will remain important as the company manages the impact of tobacco taxation and weaker cigarette demand.