Can ITC Maintain Its Earnings Momentum as Hotels and FMCG Drive Growth?
About ITC Ltd
ITC Ltd, one of India’s largest diversified conglomerates, operates across FMCG, Hotels, Paperboards, Agri-business, and Cigarettes. Its robust brand portfolio in packaged foods, personal care, and sustainable paper solutions makes it a cornerstone of India’s consumption story.
Q2 FY26 results reaffirm ITC’s resilience, driven by its FMCG leadership and recovery in the Hotels business, supported by efficiency measures and value-added product lines.
Financial Highlights (Q2 FY26)
| Metric | Q2 FY26 | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹17,650 Cr | +8% | +4% |
| EBITDA | ₹6,250 Cr | +10% | +5% |
| PAT | ₹4,950 Cr | +7% | +3% |
Revenue ₹17,650 Cr — supported by broad-based FMCG growth and hotels revival.
EBITDA ₹6,250 Cr — efficiency gains from FMCG and paperboard segments aided margins.
PAT ₹4,950 Cr — underlines stable profitability amid inflation moderation.
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Peer Comparison
| Company | Segment | EBITDA Margin |
|---|---|---|
| ITC Ltd | Diversified FMCG | 35% |
| HUL | FMCG | 23% |
| Nestlé | Packaged Foods | 25% |
ITC remains ahead in operating margins and diversified earnings resilience compared to peers.
Strengths & Weaknesses
Strengths
|
Weaknesses
|
While cigarette dependence persists, FMCG scaling and hotels recovery improve growth sustainability.
Opportunities & Threats
Opportunities
|
Threats
|
ITC remains a defensive play with steady dividend yield and long-term growth optionality.
Valuation & Investment View
- Short-term: Stable; low volatility, dividend yield support.
- Medium-term: Positive; FMCG and hotels to drive re-rating.
- Long-term: Attractive; structural compounding story.
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Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, notes that ITC offers one of India’s best risk-adjusted FMCG compounding stories with a strong dividend yield. Explore more such insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on ITC Ltd
- Will ITC’s FMCG business outperform in FY26?
- Is ITC Hotels demerger value accretive?
- Why does ITC remain a top dividend stock?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice...
