ITC Ltd Q1FY26 Results: Net Profit Rises to ₹4,912 Crore; Steady Margins Amid Segment-Wise Growth

Mumbai, 1 August 2025: ITC Ltd (NSE: ITC) announced its financial results for the quarter ended 30 June 2025 (Q1FY26), reporting a standalone net profit of ₹4,912.36 crore, a marginal increase from ₹4,819.93 crore in the same period last year. The company delivered resilient performance across its core segments, particularly in Cigarettes and FMCG, even as Agri and Paperboard businesses showed mixed trends. Strong cost rationalisation and operational efficiency helped ITC maintain healthy margins.

Standalone Revenue Up 19.8% to ₹20,910.95 Crore in Q1FY26 Driven by Strong Core Business Momentum

ITC reported a 19.8% year-on-year rise in gross revenue, reaching ₹20,910.95 crore in Q1FY26, up from ₹17,456.68 crore in Q1FY25. Total income rose to ₹21,721.06 crore, marking an 18.8% YoY increase. The company’s Profit Before Tax (PBT) before exceptional items stood at ₹6,545.11 crore, a 1.9% rise compared to the same quarter last year. Earnings per share (EPS) for continuing operations was ₹3.93.

The company maintained stable operating margins due to effective inventory management and better leverage across business verticals.

FMCG–Cigarettes Revenue at ₹8,520 Crore, Up 7.6% YoY; Agri Business Grows 38.9% to ₹9,685 Crore on Export Boost

• FMCG – Cigarettes segment delivered ₹8,520.04 crore in revenue, growing 7.6% YoY, with EBIT at ₹5,145.28 crore, up 3.7%.
• FMCG – Others revenue stood at ₹5,777.01 crore, up 5.2%, though EBIT declined by 16.4% to ₹397.49 crore due to continued investments in brand building and the impact of the Sresta Natural Bioproducts Pvt Ltd acquisition.
• Agri Business delivered a strong performance, with revenue rising 38.9% YoY to ₹9,685.03 crore and EBIT growing 21.9% to ₹433.88 crore, aided by a favourable export environment.
• Paperboards, Paper & Packaging reported revenue of ₹2,115.76 crore (up 7%) but EBIT fell 37.8% to ₹162.62 crore due to higher input costs and pricing pressures.
• Others segment revenue rose 106.6% YoY to ₹68.01 crore, but losses widened, with EBIT at –₹16.60 crore.

Consolidated Net Profit Rises 4.9% YoY to ₹5,343 Crore; Consolidated Revenue Touches ₹23,129 Crore

On a consolidated basis, ITC reported revenue of ₹23,129.35 crore in Q1FY26, growing 19.5% YoY from ₹19,350.08 crore. Consolidated net profit stood at ₹5,343.41 crore, up 4.9% from ₹5,092.32 crore last year. The company’s total comprehensive income increased to ₹5,557.49 crore, up 12.4% YoY.

The consolidated performance reflects contributions from its subsidiaries, including ITC Infotech, Technico, Mother Sparsh (associate), and recently integrated Blazeclan entities.

Strategic Updates: Amalgamation and Acquisitions Underway to Bolster FMCG Portfolio and Synergy

• Acquisition: ITC completed the acquisition of Sresta Natural Bioproducts Pvt Ltd on 13 June 2025, making it a fully owned subsidiary along with its overseas arms.
• Amalgamation: The board approved the amalgamation of Wimco Ltd and Sresta with ITC Ltd, subject to required regulatory approvals, aiming to drive synergy and growth in the FMCG segment.
• Equity Expansion: Issued 34.22 lakh shares under its employee stock options (ESOP) scheme, increasing the total paid-up capital to ₹1,251.75 crore.

Hotel Business Revenue Excluded Post Demerger; No Q1FY26 Impact from Discontinued Operations

With the demerger of the hotel business (excluding ITC Grand Central, Mumbai) into ITC Hotels Ltd, effective 1 January 2025, no revenues or profits from this segment were recognised in Q1FY26. This streamlining is expected to bring sharper strategic focus to both the core and hospitality verticals.

ITC Ltd Share Price Rises 1.13% to ₹416.60 by Market Close Post Q1FY26 Earnings Announcement

Following the release of its Q1FY26 results, shares of ITC Ltd (NSE: ITC) gained traction in the market. At the close of trading on 1 August 2025 at 3:30 PM IST, the stock settled at ₹416.60, marking a 1.13% increase or ₹4.65 gain from the previous close. The intraday trading saw the stock open at ₹412.40, touch a high of ₹419.35, and a low of ₹411.80. The company’s market capitalisation stood at ₹5.21 lakh crore, while the P/E ratio was 26.44, and the dividend yield at 3.44%.

ITC Key Metrics: Market Cap at ₹5.21 Lakh Crore; Leading Margins, Strong Profit Growth, and Stable Financials

ITC Ltd continues to hold a dominant market position with a market capitalisation of ₹5,21,546.6 crore. It is a market leader in Operating Profit Margin, posting 34.7% in the latest quarter, and 34.4% for the trailing twelve months (TTM). Its Return on Equity (ROE) is an impressive 49.6%, while Return on Assets (RoA) stands at 39.4%. The company also posted a Net Profit Growth of 285.3% YoY this quarter, with a TTM growth of 69.8%. Despite trailing the industry in revenue growth (4.7%) and operating revenue growth (8.5%), ITC maintains low PEG (0.2) and P/E ratios, suggesting valuation strength. Institutional holdings saw a slight decline to 84.93%, and the Piotroski Score remained moderate at 6, indicating average financial health.

Management Commentary: Focus on Structural Growth Drivers and Digital Strategy

Sanjiv Puri, Chairman and Managing Director of ITC Ltd, stated that the company remains committed to value-accretive opportunities and structural growth drivers. The FMCG segment continues to expand, and investments in digital transformation, sustainability, and agri exports are expected to strengthen performance in FY26.

Outlook: ITC Targets FMCG Momentum, Enhanced Paperboard Efficiency, and Agri Export Tailwinds for FY26

ITC aims to accelerate growth across its FMCG vertical, enhance capacity utilisation in the paperboard segment, and tap into agri export tailwinds. The company is also prioritising the integration of Sresta and expansion of digital initiatives through ITC Infotech.

ITC Ltd: Diversified FMCG-to-IT Conglomerate with Consistent Financial Performance

Founded in 1910, ITC Ltd is one of India’s leading private-sector enterprises with a presence across multiple sectors including FMCG, Hotels, Paperboards, Packaging, Agribusiness, and IT services. The company is listed on the NSE and BSE, and is well-regarded for its strong dividend history and long-term shareholder returns.

REF:https://nsearchives.nseindia.com/corporate/ITC_01082025172012_SE_Results_.pdf

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