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ITC stock, ITC earnings

ITC stock faces profit pressure as cigarette earnings fall

Published on 11/05/2026 at 17:03 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
ITC stock is in focus after quarterly profit fell as cigarette earnings weakened. Growth in consumer goods, agriculture and paper softened the hit.

Profit pressure meets FMCG growth

  • ITC's standalone profit declined 20.1 percent year over year in the September quarter.
  • Revenue excluding excise duty increased about 3.9 percent, giving a clearer view of underlying growth.
  • Other FMCG, agriculture and paper businesses expanded as cigarette earnings weakened.
ITC stock, ITC earnings, cigarette business, FMCG, India equities, Illustration mit AI erstellt.
ITC stock, ITC earnings, cigarette business, FMCG, India equities, Illustration mit AI erstellt.

ITC reported weaker earnings for the quarter ended September 30, 2026, as lower cigarette profitability outweighed growth in other businesses. Financial Express reported the results on November 2, 2026.

Cigarette earnings weigh on results

Standalone profit after tax fell 20.1 percent year over year to INR 4,137.12 crore from INR 5,175.70 crore. The decline came despite a 43.9 percent increase in reported revenue from operations to INR 30,578.40 crore.

The revenue comparison was distorted by higher cigarette excise duty. Excise duty rose to INR 10,309.77 crore from INR 1,754.23 crore a year earlier. Excluding the duty, revenue from operations increased about 3.9 percent to INR 20,268.63 crore.

Consumer businesses provide support

Cigarettes remained ITC's largest earnings contributor, but consolidated segment profit fell 26 percent to INR 4,044.49 crore. The other FMCG business reported 19.1 percent revenue growth to INR 7,218.36 crore, while segment profit rose 31.4 percent to INR 576.69 crore.

Agriculture revenue increased 12.7 percent to INR 4,550.60 crore and segment profit rose 14.3 percent to INR 518.41 crore. Paperboards, paper and packaging revenue advanced 35.9 percent to INR 3,017.45 crore, with segment profit up 50.7 percent to INR 273.32 crore.

The broader DAX market environment remains relevant for investors assessing consumer-sector sentiment.

ITC's results mix leaves investors weighing resilient non-cigarette growth against taxation and margin pressure in the cigarette business. More news and analyses on ITC stock are available in the company topic.

ITC September-quarter results

  • Company: ITC
  • Results period: Quarter ended September 30, 2026
  • Standalone profit: INR 4,137.12 crore, down 20.1 percent year over year
  • Revenue from operations: INR 30,578.40 crore, up 43.9 percent year over year
  • Revenue excluding excise duty: INR 20,268.63 crore, up about 3.9 percent year over year
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