ITC July-September Profit Rises 4%; Revenue Hit by Agri Business Weakness

ITC Ltd. posted a 4.1% on-year rise in standalone net profit for the September quarter at ₹51.8 billion, in line with expectations, even as revenue fell short. The company’s revenue from operations declined 2.4% on year to ₹193.8 billion, below market estimates.

Excluding excise duty, revenue dropped 3.4% to ₹180.2 billion, marking its first decline since the March 2024 quarter. The company attributed the weaker top line to a sharp fall in agri business revenue, which dropped to ₹39.8 billion from ₹57.8 billion a year earlier, following lower leaf tobacco procurement prices in the current crop cycle.

Revenue from cigarettes rose 6.7% to ₹87.2 billion, while the non-cigarette FMCG segment grew 6.9% to ₹59.6 billion. The paperboards and packaging business reported a 5% increase to ₹22.2 billion.

EBITDA rose slightly to ₹62.5 billion from ₹61.2 billion, with a margin expansion of 185 basis points to 35.1%. Within the FMCG business, cigarette EBITDA rose 4.3%, while non-cigarette FMCG EBITDA dipped 0.3%. The agri business reported a modest 1% EBITDA increase, whereas paperboards and packaging EBITDA fell 21%.

On a consolidated basis, net profit grew 2.7% to ₹51.3 billion, while revenue fell 1.3% to ₹212.6 billion. For April–September, standalone profit was up 1% to ₹100.9 billion, and revenue rose 8% to ₹404.4 billion.