ITC Limited (ITC)
₹263.50 -0.15% last close, 16 Oct
Q2 FY27 results
📅 Next results: 02 Nov 2026 (board meeting)ITC Limited's board meets on 2 Nov 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, ITC's revenue was ₹19,114 Cr (-11.1% year on year, +7.2% on the previous quarter), and net profit ₹4,509 Cr (-15.6% year on year); the operating margin was 27.1%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹19,114 | -11.1% | +7.2% |
| Operating profit | ₹5,181 | -24.0% | -25.2% |
| Net profit | ₹4,509 | -15.6% | -17.6% |
| EPS (₹) | 3.51 | -16.2% | -18.4% |
| Operating margin | 27.1% | — | — |
ITC delivery percentage and open interest
NSE end-of-day data for
On Fri, 16 Oct 2026, 62.25% of the ITC shares traded on NSE were taken to delivery, against the stock's own 20-session average of 56.81%. That is close to its usual level. In ITC futures, open interest fell 0.50% while the futures price fell 0.06%: long unwinding (longs closing out).
Delivery in the last 5 sessions: 47.8% · 53.2% · 60.6% · 64.8% · 62.2%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
ITC Limited has completed the acquisition of 13,445 equity shares of Sproutlife Foods Private Limited for approximately ₹645 crore in cash. With this transaction, ITC's shareholding increased from ~47.50% to 100%, turning the company into a wholly owned subsidiary on September 28, 2026. Sproutlife, which owns the health-food brand 'Yoga Bar', reported FY26 turnover of ₹452 crore, up from ₹200 crore in FY25 and ₹108 crore in FY24. Relative to ITC's TTM revenue of ₹78,722 crore, the ₹645 crore buyout represents ~0.82% of revenue, comfortably funded by internal accruals.
- Acquired 13,445 equity shares for a cash consideration of ~₹645 crores
- Shareholding in Sproutlife increased from ~47.50% to 100%, making it a wholly owned subsidiary
- Target entity Sproutlife ('Yoga Bar') posted FY26 turnover of ₹452 crores, compared to ₹200 crores in FY25 and ₹108 crores in FY24
- Transaction completed on 28th September, 2026 with no governmental or regulatory approvals required
ITC Limited has issued and allotted 7,35,050 Ordinary Shares of face value ₹1 each on September 17, 2026, following the exercise of 73,505 Options under its Employee Stock Option Schemes. Consequently, the company's issued and subscribed share capital increased to ₹1253,05,17,081 divided into 1253,05,17,081 shares. The allotment represents an immaterial dilution of roughly 0.006% to the total existing equity base. The meeting of the allotment committee concluded at 11:10 AM on the same day.
- Allotment of 7,35,050 Ordinary Shares of face value ₹1 each upon exercise of options
- Issued upon exercise of 73,505 Options by optionees under ESOP schemes
- Total issued and subscribed share capital expanded to ₹1253,05,17,081 (12,53,05,17,081 shares)
- Committee meeting for allotment concluded at 11:10 AM on September 17, 2026
ITC Limited has informed the exchanges regarding its participation in two third-party organized investor conferences. Representatives will attend the Jefferies 5th India Forum on 18th September, 2026 at Gurugram. Additionally, the company will participate in the 11th Annual J.P. Morgan India Conference on 21st September, 2026 in Mumbai. Both events will feature group and one-to-one physical meetings.
- Attending Jefferies 5th India Forum on 18th September, 2026 at Gurugram
- Attending 11th Annual J.P. Morgan India Conference on 21st September, 2026 at Mumbai
- Mode of attendance is physical across both conferences
- Interaction format includes group and one-to-one meetings
ITC Limited has informed exchanges that the Scheme of Amalgamation of step-down wholly owned subsidiaries Blazeclan Technologies and Cloudlytics Technologies with its wholly owned subsidiary ITC Infotech India Limited is effective from September 1, 2026. The scheme received final sanction from the NCLT Kolkata and Mumbai Benches with an Appointed Date of October 1, 2024. Following this, Blazeclan and Cloudlytics stand dissolved without winding up, completing the internal corporate simplification.
- Scheme of Amalgamation became effective on September 1, 2026
- Appointed Date of the amalgamation fixed at October 1, 2024
- Sanctioned by Hon'ble NCLT Kolkata and Mumbai Benches
- Blazeclan Technologies and Cloudlytics Technologies stand dissolved without winding up
ITC Limited's wholly owned subsidiary, ITC Infotech India Limited, has approved the acquisition of a 22.106% equity stake in Happiest Minds Technologies Limited (HMTL) from its promoters for ~₹1,330 crore in cash across two tranches. Following the stake purchase, HMTL will merge into ITC Infotech with a share swap ratio of 25 ITC Infotech shares for every 81 HMTL shares. The transaction values HMTL at ₹6,167 crore and ITC Infotech at ₹11,920 crore pre-deal. Post-amalgamation, ITC Limited will hold approximately 73.4% of the combined entity, which will be listed on NSE and BSE.
- ITC Infotech acquires 22.106% (3,36,61,700 shares) in HMTL for ~₹1,330 crore in cash from promoters (Tranche 1 @ ₹390/share, Tranche 2 @ ₹400/share).
- Share swap ratio set at 25 ITC Infotech shares (FV ₹10) for every 81 HMTL shares (FV ₹2), leading to listing of ITC Infotech.
- Post-merger shareholding will be ~73.4% ITC Limited, ~19.0% HMTL public shareholders, and ~7.6% HMTL promoters.
- HMTL reported FY26 revenue of ₹2,315.11 crore (up from ₹2,060.84 crore in FY25), creating a combined enterprise targeting US$ 1 billion revenue by FY28.
- The transaction is targeted for completion within ~15 months, subject to CCI, SEBI/Stock Exchange, and NCLT approvals.
ITC Limited has allotted 3,13,800 ordinary shares of ₹1 each on August 14, 2026, following the exercise of 31,380 employee stock options. This allotment increases the company's total issued and subscribed share capital to 12,52,97,82,031 shares. The dilution from this specific event is negligible, representing approximately 0.000025% of the total equity base. Such allotments are part of the company's ongoing employee compensation and retention strategy.
- 3,13,800 Ordinary Shares of ₹1 each allotted on August 14, 2026
- 31,380 Options were exercised by employees to trigger this allotment
- Total Issued and Subscribed Share Capital increased to ₹1252,97,82,031
- The allotment committee meeting concluded at 4:10 p.m. on the date of announcement
ITC Limited has announced its participation in the Motilal Oswal 22nd Annual Global Investor Conference scheduled for August 19, 2026, in Mumbai. The engagement will involve physical meetings in both group and one-to-one formats with institutional investors. This routine disclosure comes at a time when the company has seen a 32.4% price decline over the last 12 months despite maintaining a high ROCE of 39.0%. Investors typically look to these conferences for qualitative updates on the company's 'Cigarettes-plus' strategy and its planned Rs 20,000 Cr medium-term investment.
- Participation scheduled for the Motilal Oswal 22nd Annual Global Investor Conference on August 19, 2026.
- Meetings will be held in physical mode in Mumbai, involving group and one-to-one interactions.
- The company maintains a significant TTM revenue of Rs 78,722 Cr and a market cap of Rs 3,54,491 Cr.
- ITC is currently executing a medium-term investment plan of Rs 20,000 Cr.
- The stock has experienced a 12-month price return of -32.4% as of the announcement date.
ITC Limited has informed the exchanges of its participation in the 21st Nuvama India Investor Conference 2026. The event is scheduled for August 11th and 12th, 2026, and will be held physically in Singapore. Company representatives will engage in both group and one-to-one meetings with institutional investors. This is a routine regulatory disclosure and does not contain any new financial projections or material business updates.
- Participation in the 21st Nuvama India Investor Conference 2026
- Meetings scheduled for 2 days: August 11th and 12th, 2026
- Physical attendance in Singapore for group and one-to-one interactions
- Disclosure made under Regulation 30 of SEBI (LODR) Regulations, 2015
ITC Limited has officially completed the acquisition of the 'Century Pulp and Paper' business from Aditya Birla Real Estate Limited as of August 1, 2026. The deal, valued at approximately Rs 3,500 Cr, was executed on a slump sale basis and includes all assets, liabilities, and employees. This acquisition represents roughly 4.3% of ITC's TTM revenue and 5% of its net worth, significantly boosting its capacity in the paperboards and specialty packaging segment. The move aligns with ITC's 'Cigarettes-plus' strategy to diversify and strengthen its non-tobacco business verticals.
- Acquisition of Century Pulp and Paper completed on August 1, 2026, following the March 31, 2025 agreement.
- Total deal value is approximately Rs 3,500 Cr, representing ~4.3% of TTM revenue (Rs 81,103 Cr).
- Acquisition includes all assets, liabilities, contracts, and employees as a going concern.
- Strengthens ITC's leading position in the paperboards and specialty packaging segment.
- Supports the planned medium-term investment of Rs 20,000 Cr for capacity expansion.
ITC reported a challenging Q1 FY27 with standalone PAT declining 27% YoY, primarily driven by a 35% drop in Cigarette segment results following unprecedented tax increases. While Gross Revenue grew 28% YoY, Net Revenue fell 14% as the company adopted a staggered pricing strategy to protect its consumer franchise from illicit trade. FMCG-Others showed resilience with 12% revenue growth and 21% PBIT growth, while the Paperboards segment saw a strong 38% PBIT recovery. The company flagged risks from West Asia conflict-led inflation and a significant monsoon deficit impacting the agri-economy.
- Standalone PAT and EBITDA decreased by 27% and 28% YoY respectively, reflecting margin pressure in the core cigarette business.
- Cigarette segment results declined 35% YoY due to tax hikes and a calibrated pricing response to prevent volume migration.
- FMCG-Others segment delivered 12% revenue growth (16% excluding staples) with PBIT increasing 21% YoY.
- Paperboards, Paper & Packaging segment PBIT surged 38% YoY with a 200 bps margin expansion driven by better realizations.
- Digital-first and Organic portfolio (Yogabar, 24 Mantra, etc.) reached an Annual Revenue Run rate (ARR) of approximately Rs. 1,500 cr.
ITC Limited reported a standalone net profit of ₹3,578.82 Cr for Q1 FY27, representing a 27.1% decline from ₹4,910.73 Cr in the same period last year. While gross revenue from operations grew 28% YoY to ₹26,943.23 Cr, this was primarily driven by a massive surge in excise duty, which jumped to ₹10,035.63 Cr from ₹1,309.07 Cr YoY following tax changes effective February 2026. The core Cigarette segment saw PBIT decline 35% YoY to ₹3,341.23 Cr, while the FMCG-Others segment showed resilience with a 12% revenue growth and improved EBITDA of ₹631.06 Cr.
- Net Profit for Q1 FY27 stood at ₹3,578.82 Cr, a significant drop from ₹4,910.73 Cr in Q1 FY26.
- Excise duty expenses surged by 666% YoY to ₹10,035.63 Cr due to the expiry of GST Compensation Cess and subsequent tax hikes.
- Cigarette segment PBIT fell to ₹3,341.23 Cr from ₹5,145.28 Cr in the previous year's quarter.
- Agri-business revenue declined 16.5% YoY to ₹8,082.06 Cr, down from ₹9,685.03 Cr.
- FMCG-Others EBITDA reached ₹631.06 Cr, up from ₹544.65 Cr in the corresponding quarter last year.
ITC reported a 27.1% YoY decline in standalone Net Profit to Rs 3,578.82 Cr for Q1 FY2027, primarily due to a massive surge in excise duty on cigarettes. While Gross Revenue from operations rose 27.9% to Rs 26,943.23 Cr, this figure is inflated by the pass-through of higher taxes effective February 2026. The Cigarette segment PBIT fell 35% YoY to Rs 3,341.23 Cr, reflecting margin compression. Conversely, the FMCG-Others segment showed resilience with PBIT growing 20.8% to Rs 478.61 Cr, and Paperboards PBIT improved 37.9% to Rs 224.22 Cr.
- Net Profit for the quarter ended June 30, 2026, fell to Rs 3,578.82 Cr from Rs 4,910.73 Cr in the previous year.
- Excise duty expense surged to Rs 10,035.63 Cr in Q1 FY2027 compared to just Rs 1,309.07 Cr in Q1 FY2026.
- Cigarette segment PBIT declined significantly to Rs 3,341.23 Cr from Rs 5,145.28 Cr YoY.
- FMCG-Others segment EBITDA grew to Rs 631.06 Cr, up from Rs 544.65 Cr in the corresponding quarter last year.
- Agri-Business revenue saw a decline of 16.5% YoY, dropping to Rs 8,082.06 Cr.
ITC Limited has been assigned an ESG score of 67, categorized as 'Strong', by SEBI-registered provider ESG Risk Assessments & Insights Limited for FY 2025-26. This score represents a marginal 1-point decline compared to the previous financial year (FY 2024-25). While the specific methodology was not disclosed to the company, the rating remains in a high-performance bracket. For a company where cigarette regulations impact approximately 78% of EBIT, maintaining a 'Strong' ESG profile is relevant for institutional investor sentiment.
- Assigned an ESG score of 67 for the financial year 2025-26
- The score is officially categorized as 'Strong' by the rating agency
- Reported a 1-point decline in the ESG score compared to FY 2024-25
- Company operates in a regulatory environment where 78% of EBIT is subject to cigarette-related compliance
Crisil ESG Ratings & Analytics has upgraded ITC's overall ESG score to 69 for FY 2025-26, up from 61 in the previous year. The company's Core ESG rating also saw a significant improvement, rising to 76 from 70. This 'Strong' categorization reflects enhanced sustainability performance and disclosures. While not a credit rating, these scores are increasingly critical for institutional capital allocation and ESG-mandated fund inflows.
- Overall ESG Score improved by 13% to 69 from 61 in the previous financial year
- Core ESG Rating increased to 76 based on FY 2025-26 data, compared to 70 in FY 2024-25
- Company classified under the 'Strong' category by SEBI-registered Crisil ESG Ratings
- Rating reflects data pertaining to the most recent financial year 2025-26
- ITC maintains a massive market cap of Rs 3,57,898 Cr with a low D/E ratio of 0.03
ITC Limited announced that its shareholders, at the 115th Annual General Meeting held on July 23, 2026, have approved the re-appointment of Mr. Hemant Bhargava as an Independent Director. His new five-year term will commence on December 20, 2026. Mr. Bhargava, 67, is a former Chairman-in-charge and Managing Director of LIC, bringing extensive financial services and leadership experience to the board. This re-appointment ensures continuity in independent oversight for the company, which has a market capitalization of Rs 3,57,898 Cr.
- Re-appointed as Independent Director for a 5-year term starting December 20, 2026
- Approval obtained at the 115th Annual General Meeting on July 23, 2026
- Mr. Bhargava has served on the ITC board since December 20, 2021
- He previously held the role of Chairman-in-charge and Managing Director at LIC in 2019
- The director has 38 years of experience across marketing and international operations
Financial Performance
Revenue Growth by Segment
As of H1 FY2026, Cigarettes contributed 37% to segment revenue (down from 47% in FY2018), FMCG-Others 23%, Agri-business 27%, Paperboards and Packaging 8%, and Others 5%. In H1 FY2025, the Agri-business segment witnessed a revenue growth of ~32% YoY, while standalone gross revenue in Q2 FY2026 grew 7.1% YoY (excluding Agri-business).
Geographic Revenue Split
Not specifically disclosed in available documents, though the company operates across 22 Indian states for agri-sourcing and has a significant presence in Nepal through its subsidiary Surya Nepal Private Limited.
Profitability Margins
Net Profit Margin (NPM) stood at 29% in FY2024 and moderated to 26% in FY2025. Operating Profit Margin (OPM) was 37.0% in FY2024 compared to 36.3% in FY2023. H1 FY2026 OPM moderated to 33% from 35% in H1 FY2025 due to paperboard weakness and higher agri-business mix.
EBITDA Margin
Standalone EBITDA margin stood at 35.1% in Q2 FY2026, representing a 185 bps YoY increase. Overall EBITDA grew 2.1% YoY in the same period.
Capital Expenditure
ITC plans to invest INR 20,000 Cr across businesses over the medium term. This includes an estimated INR 3,500 Cr for the acquisition of Century Pulp and Paper (CPP) from Aditya Birla Real Estate Limited.
Credit Rating & Borrowing
Commercial Paper rated [ICRA]A1+ (reaffirmed in November 2025). The company maintains a conservative capital structure with negligible debt (INR 11 Cr as of March 31, 2024) and long-term repayment obligations of only INR 58 Cr in FY2026.
Operational Drivers
Raw Materials
Key raw materials include leaf tobacco, wheat, dairy, and agricultural commodities for the FMCG and Agri segments, and wood pulp/recycled fiber for the paperboard division. Agri-commodity sourcing handles ~3.5 million tonnes of annual volume.
Import Sources
Sourced across 22 Indian states and more than 20 agri-value chains. Specific international import countries are not listed, though leaf tobacco is a major internal and export commodity.
Key Suppliers
Not specifically named, but the company utilizes a robust supply chain and agri-farm network for backward integration.
Capacity Expansion
Planned investment of INR 20,000 Cr over the medium term. Acquisition of Century Pulp and Paper will add significant manufacturing capacity for pulp and paper products.
Raw Material Costs
Agri-business revenue grew 32% in H1 FY2025, but its higher share in the revenue mix contributed to a moderation in overall OPM to 34% from 38% because agri-trading typically operates on lower margins than cigarettes.
Manufacturing Efficiency
Paperboard PBIT margin expanded by 100 bps in Q2 FY2026 over Q1 FY2026, despite a 32% YoY decline in segment PBIT for H1 FY2026 due to industry headwinds.
Logistics & Distribution
Not disclosed as a specific percentage, but the company leverages an extensive nationwide distribution network as a core competitive advantage.
Strategic Growth
Expected Growth Rate
7.90%
Growth Strategy
Growth is driven by a 'Cigarettes-plus' strategy: diversifying into FMCG-Others (staples, dairy, personal care), expanding the agri-business (leaf tobacco and value-added products), and inorganic growth such as the INR 3,500 Cr acquisition of Century Pulp and Paper. The demerger of the hotel business (ITC Hotels Ltd) allows for a more focused capital allocation.
Products & Services
Cigarettes, branded packaged foods (staples, snacks, dairy, frozen foods, chocolates, ghee), personal care products, stationery, safety matches, agarbatti, paperboards, specialty packaging, and IT solutions/services.
Brand Portfolio
Gold Flake, Century Pulp and Paper, ITC Infotech, Surya Nepal.
New Products/Services
Recent additions include chocolates, ghee, dairy, and frozen food products to the branded packaged foods segment.
Market Expansion
Focusing on value-added agricultural products and premium personal care; expanding the FMCG footprint through omni-channel distribution.
Market Share & Ranking
ITC is the largest cigarette manufacturer and seller in India and holds a leading position in the paperboards and specialty packaging segments.
Strategic Alliances
Joint ventures include ITC Filtrona Limited (50% ownership) and Logix Developers Private Limited (27.9% ownership).
External Factors
Industry Trends
The cigarette industry faces a stable tax regime currently, which supports revenue growth. The FMCG industry is seeing a shift toward staples and convenience foods, while the paperboard industry is facing temporary margin pressure.
Competitive Landscape
Faces competition from unorganized tobacco players and global/domestic FMCG giants like HUL and Nestle in the 'Others' segment.
Competitive Moat
The moat is built on a dominant market share in cigarettes (78% of EBIT), a massive distribution network, and deep backward integration into agri-sourcing. These are sustainable due to high entry barriers in tobacco and the scale of the agri-supply chain.
Macro Economic Sensitivity
Sensitive to agricultural output (climate-dependent) and domestic consumption trends. Excessive rains in Q2 FY2026 impacted FMCG-Others operations.
Consumer Behavior
Increasing demand for staples, dairy, and premium personal care products is driving growth in the FMCG-Others segment.
Geopolitical Risks
Exposed to trade restrictions on agricultural commodities and disruptions in international markets (e.g., Nepal operations were resilient despite disruptions in September 2025).
Regulatory & Governance
Industry Regulations
Highly regulated cigarette industry; any material change in government policy regarding tobacco sales or health warnings can significantly impact profitability.
Environmental Compliance
Exposed to risks regarding plastic packaging restrictions and manufacturing discharge norms; the company is seeking eco-friendly packaging alternatives.
Taxation Policy Impact
Cigarettes are subject to stringent taxation and statutory compliance. The transition to a new GST regime in certain segments posed operational challenges in late 2025.
Legal Contingencies
Not disclosed in specific INR values, though the company monitors regulatory developments in the cigarette industry as a primary risk factor.
Risk Analysis
Key Uncertainties
Regulatory changes in tobacco (high impact on 78% of EBIT), climate change affecting agri-inputs, and commodity price volatility in the FMCG segment.
Geographic Concentration Risk
Concentrated in India, with sourcing across 22 states. International exposure includes Nepal (Surya Nepal Private Limited).
Third Party Dependencies
Dependence on a network of farmers for 3.5 million tonnes of agri-commodities and contractual labor for manufacturing and services.
Technology Obsolescence Risk
The company is addressing digital transformation through its 'Others' segment (ITC Infotech) and IT solutions for internal business synergies.
Credit & Counterparty Risk
Superior liquidity with over INR 20,000 Cr in free cash and liquid investments as of March 31, 2025, ensures minimal counterparty risk.
