ITC’s consolidated net profit for the quarter ended September 30, 2026 fell 20.1% year on year to ₹4,137 crore, down from ₹5,176 crore in Q2 FY26. The result still edged past the Bloomberg consensus estimate of ₹4,129 crore. Operating margins narrowed to 28%, compared with 34.6% in the preceding quarter, reflecting the weight of higher taxes on the company’s most profitable business.
Revenue, however, held steady. Revenue from operations rose 1.8% to ₹18,401 crore from ₹18,081 crore a year earlier, comfortably beating the analyst projection of ₹17,520 crore, according to NDTV Profit. The top-line performance suggests demand across the portfolio stayed resilient even as profitability came under pressure.
The cigarette business bore the brunt of the squeeze. High tax levies weighed on legal consumption, and segment results declined 27.2% year on year to ₹3,813 crore. Pressure in this high-margin segment explains much of the dip in the company’s overall operating margin.
Diversification offered a cushion. The non-cigarette FMCG segment posted its strongest performance in 14 quarters, with revenue up 19% on double-digit growth across staples, snacks and personal wash. Segment PBIT grew 27.8% to ₹558 crore. Elsewhere, agri-business revenue stood at ₹4,451.69 crore and paperboards at ₹3,015.85 crore. The numbers show ITC’s push beyond tobacco increasingly helping offset tax-led pressure.
