ITC Q2 Profit Rises 3-4% Amid Revenue Decline

ITC Ltd reported a modest increase in consolidated net profit for the second quarter of 2025, with figures rising around 3-4% year-over-year to approximately ₹5,186 crore, despite a slight decline in consolidated revenue by about 2-2.4%. The company's performance was bolstered by strong growth in its cigarettes and FMCG segments, with cigarette revenue up around 6.7%, driven by premium offerings and strategic market interventions, while FMCG revenue grew approximately 7-8%, supported by staples, dairy, personal care, and premium product categories. Challenges included operational disruptions from excessive rains and the transition to new GST rates, which caused short-term impacts, particularly on the FMCG business and agri segment, the latter experiencing a significant revenue drop due to timing and high base effects. The paperboards, paper, and packaging division also showed resilience with moderate growth and improved profitability aided by higher volumes and easing raw material prices. ITC's overall outlook is cautiously optimistic, citing factors such as tax cuts, reduced inflation, and supportive monetary policy expected to strengthen consumer demand going forward, alongside ongoing investments in growth areas like FoodTech and hospitality subsidiaries. The company emphasized mixed economic signals, noting resilient rural demand and urban consumption upticks, but subdued industrial and core sector growth during the quarter.