ITC Q1 Results: Profit Falls 16% YoY to ₹4,394 Crore Despite Strong Revenue Growth; Cigarette Business Revenue Jumps 81%

ITC Q1 Results FY27

ITC Ltd. announced its financial results for the quarter ended June 30, 2026 (Q1 FY27), reporting a decline in profitability despite delivering strong revenue growth across its businesses.

The company posted a consolidated net profit of ₹4,394.13 crore, down 16.2% year-on-year from ₹5,244.20 crore reported in the same quarter last year. On a sequential basis, net profit declined 18.4% from ₹5,387.97 crore in Q4 FY26.

Despite the decline in profit, revenue from operations increased 27.6% year-on-year to ₹29,523.30 crore, reflecting healthy business momentum across several segments.

Consolidated gross revenue rose 27.8% year-on-year to ₹29,410 crore, while EBITDA declined 24% to ₹5,181 crore during the quarter.

Key Financial Highlights

• Consolidated Net Profit: ₹4,394.13 crore (down 16.2% YoY)
• Revenue from Operations: ₹29,523.30 crore (up 27.6% YoY)
• Gross Revenue: ₹29,410 crore (up 27.8% YoY)
• EBITDA: ₹5,181 crore (down 24% YoY)

Cigarette Business Performance

The cigarette business continued to remain ITC's largest contributor, with gross revenue surging 80.6% year-on-year to ₹15,383.55 crore.

However, despite the sharp increase in revenue, Profit Before Tax (PBT) from the segment declined 35% year-on-year to ₹3,341.23 crore.

The company stated that it has implemented agile pricing strategies and multiple portfolio optimization initiatives to strengthen its consumer franchise and improve long-term business performance.

FMCG Business Continues Strong Growth

ITC's non-cigarette FMCG business delivered another healthy quarter.

Revenue from the segment increased 12% year-on-year, while excluding staples, growth stood at 16%.

Profit Before Tax for the FMCG business increased 21% year-on-year to ₹478.61 crore.

The company reported strong growth across several product categories, including dairy products, snacks, noodles, frozen foods, personal care products, and notebooks.

Agri Business Faces Headwinds

The agri business witnessed weaker performance during the quarter.

Revenue declined 16.6% year-on-year to ₹8,082.06 crore, while Profit Before Tax dropped 18.5% year-on-year to ₹353.79 crore.

According to the company, geopolitical tensions in West Asia and trade disruptions impacted exports, while the business also faced a higher base effect.

Paperboards, Paper & Packaging Business

The paper and packaging business reported a strong improvement during the quarter.

Revenue increased 9% year-on-year to ₹2,307.24 crore, while Profit Before Tax jumped 38% year-on-year to ₹224.22 crore.

The company attributed the growth to improved demand for value-added products, sustainable paperboards, packaging solutions, stronger exports, and better cost management as wood prices moderated.

Standalone Financial Performance

On a standalone basis, ITC reported:

• Net Profit declined 27.1% YoY to ₹3,579 crore
• Revenue declined 14.4% YoY to ₹16,812 crore
• EBITDA declined 27.9% YoY
• EBITDA Margin narrowed to 26.7%

Key Takeaways

Despite weaker profitability, ITC delivered strong revenue growth during the quarter.

The cigarette business registered exceptional revenue growth, although profitability remained under pressure.

The FMCG segment continued to perform well with healthy growth across multiple product categories.

The paper and packaging business also showed strong improvement, supported by better realizations and operational efficiencies.

However, geopolitical disruptions affected the agri business, resulting in lower revenue and profitability.

Outlook

ITC continues to benefit from its diversified business model, with strong contributions from FMCG, cigarettes, hotels, paperboards, and agri businesses.

Going forward, investors will closely watch the company's pricing strategy, demand trends across FMCG categories, regulatory developments in the cigarette business, and margin recovery over the coming quarters.

Disclaimer

This article is published solely for educational and informational purposes and should not be considered financial, investment, legal, or tax advice. The information presented is based on publicly available sources and is believed to be accurate at the time of publication; however, TrendRipperX does not guarantee its completeness or accuracy.

TrendRipperX is not registered with the Securities and Exchange Board of India (SEBI) as an Investment Adviser or Research Analyst. Any views expressed are for informational purposes only and do not constitute a recommendation to buy, sell, or hold any security.

Investments in financial markets are subject to market risks. Readers should conduct their own research and consult a SEBI-registered financial advisor before making any investment decisions.