ITC Q1 Profit Inches Up to ₹4,912 Crore; Revenue Jumps 15%

2 Aug 2025 , 11:46 PM

ITC Ltd reported a steady net profit of ₹4,912 crore for the June quarter (Q1FY26). It is marginally higher than ₹4,874 crore in the same period last year. 

Revenue from operations jumped 15% year-on-year to ₹20,911 crore. This is driven by growth in core businesses such as FMCG, agri, and cigarettes. And this is compared to ₹18,266 crore posted in Q1FY25.

The company’s EBITDA rose just 3% YoY to ₹6,261 crore. Its operating margins fell by 530 basis points to 31.7%. This is largely due to elevated input costs and rising commodity prices. Profit Before Tax (PBT) stood at ₹6,545 crore, reflecting a modest 1.9% increase over the previous year.

The FMCG segment remained a key contributor, generating ₹5,543 crore in revenue. Cigarette sales were up 3.7% at ₹5,145 crore, while the non-cigarette FMCG segment saw a 16.5% YoY dip to ₹397 crore.

The cigarettes business showed a 7.7% YoY jump in revenue, reaching ₹8,520 crore, as premium offerings and strategic product tweaks boosted performance. Continued efforts to curb illicit trade, including the government’s new Track & Trace mechanism under the CGST Act, are expected to support future growth.

However, margins in the segment faced pressure due to high-cost inventory of leaf tobacco, although current procurement costs have started to ease slightly with the new crop cycle.

The Agri-Business segment was a standout performer, growing 39% YoY to ₹9,685 crore. The uptick was led by strong commodity trading volumes and robust exports of leaf tobacco. The segment managed to navigate regulatory headwinds and global market volatility thanks to its core expertise in sourcing and export.

ITC’s non-cigarette FMCG business clocked ₹5,777 crore in revenue, up 5.2% YoY, with solid performance in staples, packaged foods, personal care, and home hygiene products. The agarbatti and dairy segments also contributed meaningfully.

Notebook sales were impacted by intense pricing competition from regional players and cheaper imports, while the beverages category faced a dip due to unseasonal rainfall.

Segment EBITDA margins for FMCG-Others improved sequentially by 50 basis points to 9.4%, backed by cost discipline and smart price-volume management, even as input prices for wheat, cocoa, oil, and soap noodles remained high.

Revenue from the Paperboards, Paper & Packaging segment rose 7% YoY to ₹2,115 crore, led by higher sales volumes. However, margins were under pressure due to muted price realizations and a rise in wood costs.

The company said strategic capacity additions and efficiency-focused initiatives aided growth in specialty paper, even though cost inflation in inputs dragged profitability.

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