ITC's 2QFY18 net revenue grew 1.1% YoY (est. of +2.5%) to INR97.6b. EBITDA margin expanded 90bp YoY (est. of +160bp). EBITDA thus grew 3.6% YoY to INR37.6b (est. of +6.6%). Adj. PAT grew 5.6% YoY (est. of +9.5%) to INR26.4b. Cigarette volume is likely to have declined ~6% YoY, higher than our expectation of a 2% fall. We reckon the proportion of sub-65mm cigarette sales to have increased further. For cigarette, revenue declined 2.3% YoY, while EBIT grew 2.3% YoY (320bp expansion of EBIT margin on gross sales). Cigarette EBIT growth was the second weakest in 10 quarters, following a 1.7% increase...