ITC standalone profit falls ten percent on higher costs and new labour charges
ITC Limited reported a 10 percent fall in standalone quarterly profit due to rising material costs and labour code charges as overall revenue grew 6 percent.
Insights:
ITC Limited reported a 10 percent year-on-year decline in its standalone quarterly profit for the quarter ended December 31, 2025. Profit for the period fell to 50.89 billion rupees compared to 56.38 billion rupees during the same period a year ago. The company, which remains the market leader in the cigarette sector in India 
IN, reported that overall revenue rose 6 percent to 193.59 billion rupees despite the drop in net earnings.
IN, reported that overall revenue rose 6 percent to 193.59 billion rupees despite the drop in net earnings.A primary driver for the profit decline was a one-time charge of 2.74 billion rupees tied to the implementation of new labour codes in India. These codes represent the largest overhaul of worker laws in the country in decades and have dragged profits for various firms across multiple sectors. Other companies reported to be affected by the implementation of these codes include Godrej Consumer Products Limited , Mahindra Holidays & Resorts India Limited , Wipro Limited , and Infosys Limited .
