ITC Reports 4.2% Profit Growth Amid Mixed Revenue Performance; Cigarettes and ITC Infotech Shine

FMCG major ITC reported a net profit increase of 4.2% to ₹5,187 crore, driven by strong cigarette and ITC Infotech performance. However, gross revenue declined 1.6% year-over-year to ₹21,047 crore. The cigarette segment grew 6.7%, fueled by premium products and market strategies against illicit trade, although leaf tobacco costs remain high. The FMCG segment faced challenges from excessive rains and GST transitions, causing short-term disruptions. Staples, dairy, and premium personal wash led growth, while the notebook industry struggled with cheap imports. ITC Infotech showed strong growth, with revenue up 18% to ₹2,350 crore in the first half of FY26. The company anticipates future consumption boost from lower inflation, interest rates, and government fiscal measures.

Impact: This news provides investors key insights into ITC's varied business segments. The cigarette division's resilience and ITC Infotech's growth are positive. FMCG challenges due to weather and GST are noted. The outlook on economic factors is crucial for future projections. Impact Rating: 7/10.

Difficult Terms: FMCG: Fast-Moving Consumer Goods, everyday products sold quickly. Gross Revenue: Total income from sales before expenses. Differentiated offerings: Unique products that stand out. Premium offerings: High-quality, high-priced goods. Illicit trade: Illegal or smuggled goods. GST: Goods and Services Tax, an indirect tax. Notebook industry: Business of making and selling notebooks. Low-priced paper imports: Cheap imported paper hurting domestic producers. Liquidity support: Ensuring enough money in the financial system. RBI: Reserve Bank of India.