What Does ITC Limited’s Q2 Performance Reveal About Its Growth Momentum?
About The Company
ITC Limited is one of India’s most diversified conglomerates with presence in FMCG, hotels, paperboards, packaging, and agribusiness. The company continues to dominate the cigarette and packaged foods market while expanding steadily in personal care, snacks, and frozen foods. Despite a subdued macro environment, ITC maintains its position as a defensive large-cap play within the Nifty index.
Financial Performance Overview
ITC reported mixed performance in Q2, with modest profit growth but a decline in revenue. The FMCG and hotel segments performed resiliently, while the paper and agri divisions faced short-term headwinds. Operational efficiency supported stable margins, keeping profitability intact.
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Q2 FY26 Results Snapshot
| Metric | Value | YoY / QoQ Change |
|---|---|---|
| Net Profit | ₹5,179 Cr | ▲ 2% YoY | ▲ 5% QoQ |
| Revenue | ₹18,021 Cr | ▼ 3% YoY | ▼ 9% QoQ |
| EBITDA | ₹6,250 Cr | ▲ 2% YoY | Flat QoQ |
| EBITDA Margin | 34.68% | vs 32.83% YoY | 31.70% QoQ |
Peer Comparison
| Company | P/E (x) | ROE (%) | Dividend Yield (%) |
|---|---|---|---|
| ITC Limited | 28.3 | 27.6 | 3.2 |
| Hindustan Unilever | 58.4 | 18.5 | 1.5 |
| Nestlé India | 72.1 | 81.0 | 1.2 |
SWOT Analysis
| Strengths | Weaknesses | Opportunities | Threats |
|---|---|---|---|
| Strong brand equity across FMCG and tobacco segments. | High dependency on cigarette business. | Expanding FMCG portfolio and hotel segment growth. | Regulatory risks related to tobacco taxation. |
Investors seeking stability can monitor ITC for medium-term accumulation. The steady dividend yield and consistent cash flows make it a strong defensive bet, particularly when market volatility rises.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Registered Investment Adviser, highlights that ITC remains a preferred long-term pick in the FMCG basket due to stable earnings visibility, pricing power, and strong dividend payouts.
Discover more expert insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on ITC Limited Growth Outlook
- What Are The Key Drivers Of ITC’s Profit Growth?
- How Does ITC’s Margin Compare With FMCG Peers?
- Should Long-Term Investors Accumulate ITC Now?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
