ITC, a major Indian conglomerate, reported its second quarter results for fiscal year 2026 on October 30, 2025, showing modest growth in revenue and net profit. The company faced mixed demand trends and GST impacts, but steady cigarette sales and FMCG performance helped drive the numbers.
Key Financial Highlights
ITC posted a standalone revenue of about 19,200 crore rupees for the quarter, up around 5 percent from the same period last year. This growth came despite pressures from raw material costs and market shifts.
Net profit rose by 2 percent year on year to 5,250 crore rupees, beating some analyst expectations of flat or minimal gains. Experts point to better cost management and a pickup in rural demand as key factors.
The earnings before interest, taxes, depreciation, and amortization margin held steady at about 36 percent, reflecting efficient operations in core segments.
Here is a quick look at the main figures compared to last year:
| Metric | Q2 FY26 (Crore Rupees) | Q2 FY25 (Crore Rupees) | Change (%) |
|---|---|---|---|
| Revenue | 19,200 | 18,300 | +5 |
| Net Profit | 5,250 | 5,150 | +2 |
| EBITDA | 6,900 | 6,600 | +4.5 |
| EBITDA Margin | 36% | 35.8% | +0.2 |
Performance Across Business Segments
The cigarette business, which makes up a large part of ITC’s revenue, saw volume growth of about 3 percent, helped by stable pricing and demand recovery in urban areas. However, higher taxes and health awareness trends put some pressure on margins.
FMCG operations grew by 6 percent in revenue, driven by strong sales in packaged foods and personal care items. Rural markets showed signs of revival after a slow start to the year, boosting volumes in staples like snacks and beverages.
The hotels segment performed well with an 8 percent revenue increase, thanks to higher occupancy rates and tourism rebound. Agri business also contributed positively with better export demand, though paper and packaging faced headwinds from cheap imports.
Overall, diversification helped ITC weather challenges like GST rate adjustments, which affected input costs but opened doors for better efficiency in the long run.
Impact of GST and Demand Trends
Recent GST changes, including rate cuts on certain goods, influenced ITC’s margins in subtle ways. The company noted that while input costs eased for some FMCG items, cigarette taxes remained a drag, leading to cautious pricing strategies.
Demand trends pointed to a gradual recovery in consumer spending, especially in rural India, where government support programs have spurred buying. Urban markets stayed steady, but inflation worries kept growth modest.
Analysts say these trends align with broader economic shifts, such as rising disposable incomes and e-commerce growth, which could benefit ITC in coming quarters.
- Cigarette demand held firm despite tax hikes, with premium brands leading the way.
- FMCG saw gains from new product launches in health focused categories.
- Hotels benefited from domestic travel boom post pandemic recovery.
Technical Analysis of ITC Stock
ITC shares have shown resilience on the charts, recovering from a key support level near 400 rupees. The stock traded above its 21 week moving average, suggesting short term positive momentum.
Resistance sits at 425 to 440 rupees, and breaking that could push prices toward 460 rupees. On the downside, a drop below 395 rupees might signal more selling.
This setup reflects investor caution ahead of results, but the modest earnings beat could spark buying interest.
Options Trading Strategies
For traders eyeing volatility around the results, options data showed implied moves of about 3 percent. A long straddle strategy, buying equal call and put options at the money, could profit from big price swings.
Historical data from past quarters indicates ITC often sees 2 to 5 percent moves post earnings, making this approach timely. Always consider risk tolerance and market conditions before trading.
Market Reaction and Future Outlook
Shares of ITC closed flat after the announcement, hovering around 420 rupees, as investors digested the numbers amid broader market dips. Year to date, the stock is down 10 percent, lagging behind peers due to sector challenges.
Looking ahead, management expects steady growth from FMCG and hotels, with cigarette stability key to profits. Broader economic recovery and export opportunities could drive gains in 2026.
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