ITC Limited reported a 14% year-on-year rise in employee benefit expenses to ₹1,886.52 crore in Q2 FY27, even as its standalone net profit declined 20.1% to ₹4,137.12 crore for the quarter ended 30 September 2026.
Employee benefit expenses stood at ₹1,654.49 crore in the same quarter last year, according to the company’s regulatory filing. Total standalone expenses for the quarter rose sharply to ₹25,462.44 crore from ₹15,016.02 crore a year earlier.
On a consolidated basis, ITC’s profit fell 18.45% to ₹4,229.33 crore, while revenue from operations grew 43.85% to ₹30,578.4 crore. The cigarette segment result fell 27.2% year-on-year to ₹3,813 crore from ₹5,241 crore, as the company absorbed the impact of higher excise duty.
In its earnings statement, ITC noted “robust growth across all Non-Cigarette Business segments”. The non-cigarette business grew 18% on a standalone basis, with FMCG Others revenue at ₹6,967 crore, Paperboards and Packaging at ₹3,016 crore, and Agri Business at ₹4,452 crore.
ITC also recorded an exceptional acquisition-related expense of ₹25.66 crore in the quarter, compared with an insurance settlement gain of ₹88.08 crore in the prior-year period.
Cigarettes contributed roughly 74% of ITC’s total standalone segment profit in Q2 FY27, underlining the segment’s continued weight on earnings despite diversification efforts.
The rise in employee costs comes against the backdrop of continued hiring in FMCG and hospitality verticals, where ITC has been expanding its non-tobacco portfolio. The company completed the Century Pulp acquisition during the quarter and received board approval for the Sproutlife amalgamation, according to its board meeting outcome filed with exchanges on 2 November 2026.
