ITC Q1 Results: Net profit remains flat at ₹4,912 crore; revenue up 15%

Diversified conglomerate ITC Ltd announced its June quarter (Q1FY26) results post-market hours, reporting a net profit of ₹4,912 crore, largely unchanged from ₹4,874 crore in the same period last year and in line with analysts’ expectations. Its revenue from operations stood at ₹20,911 crore, up 15% YoY from ₹18,266 crore reported in the June 2024 quarter. 

At the operating level, the company posted an EBITDA of ₹6,261 crore, marking a 3% YoY growth, while margins contracted sharply by 530 basis points to 31.7%, impacted by the sharp rise in the commodity prices.

The company’s Profit Before Tax (PBT) stood at ₹6,545 crore, up 1.9% YoY. The FMCG segment contributed ₹5,543 crore, with the cigarettes division growing 3.7% to ₹5,145 crore, while the non-cigarette FMCG business declined 16.5% to ₹397 crore.

The Agri Business posted a 21.9% rise at ₹434 crore, whereas the Paperboards, Paper & Packaging segment saw a sharp 37.8% decline to ₹163 crore.

Cigarettes, agri-business lead in Q1

Revenue from ITC’s cigarettes division, its largest segment, rose 7.7% YoY to ₹8,520 crore, supported by premium offerings, strategic portfolio interventions, and ongoing efforts to curb illicit trade. Additionally, amendments to the CGST Act under Union Budget 2025, enabling a Track and Trace mechanism, are expected to further strengthen measures to control illicit trade.

However, segment margins were partially impacted by high-cost leaf tobacco inventory, though procurement prices showed some moderation in the current crop cycle. 

ITC’s Agri-Business segment grew 39% YoY to ₹9,685 crore, driven by commodity trading and strong leaf tobacco exports. Despite trading restrictions and global volatility, crop expertise and nicotine exports supported growth.

ITC’s FMCG-Others segment reported an 5.2% YoY revenue growth at ₹5,777 crore, led by strong performance in staples, biscuits, dairy, premium personal wash products, homecare, and agarbattis.

Meanwhile, the company said that the notebooks category continued to face deflationary pressures due to low-priced imports and competitive pricing from regional players, while unseasonal rains impacted beverage sales.

Segment EBITDA margin improved by 50 basis points sequentially to 9.4%, supported by smart revenue management, ongoing price-volume-value rebalancing, and focused cost-control initiatives despite elevated commodity prices for edible oil, wheat, maida, cocoa, and soap noodles.

The Paperboards and Packaging segment rose 7% YoY to ₹2,115 crore on higher volumes, but margins were impacted by muted realizations and high wood costs. Strategic cost management and capacity additions aided specialty paper growth, as per the company’s earnings’ filing. 

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