World · India Bureau
ITC's Q2 profit may slide up to 28% on weak cigarette sales
Analysts anticipate ITC Ltd will post a subdued second-quarter performance, with overall revenue expected to contract around 5 per cent and net profit potentially declining significantly as cigarette business headwinds persist.
LSN India ·
Market watchers are bracing for a tepid showing from ITC Ltd when the conglomerate announces its second-quarter results for FY27, with multiple concerns weighing on the company's financial performance.
Analysts project consolidated revenue will contract by approximately 5 per cent in the quarter, reflecting broader challenges across the company's portfolio. The profit outlook appears particularly concerning, with net attributable profit (PAT) forecast to decline in the 15-28 per cent range, a substantial contraction that underscores operational headwinds facing India's diversified tobacco-to-hotels conglomerate.
The cigarette business, historically a cornerstone of ITC's earnings, is expected to be a primary drag on profitability. Rising input costs, excise duty pressures, and subdued consumer demand have combined to create a challenging environment for the company's flagship segment during the quarter.
The weak second-quarter preview suggests ITC faces significant headwinds that extend beyond seasonal factors. Investors will be watching closely when results are announced to gauge management's outlook for the remainder of the fiscal year and the company's strategic response to current market dynamics.