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.
ITC’s FMCG-Others segment reported an 8.6% YoY revenue growth (excluding notebooks) at ₹5,777 crore, led by strong performance in staples, biscuits, dairy, premium personal wash products, homecare, and agarbattis. 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 cigarettes segment posted a 7.7% YoY increase in net revenue at ₹8,520 crore, driven by differentiated and premium offerings, strategic portfolio interventions, and efforts to curb illicit trade. However, margins were partially weighed down by high-cost leaf tobacco inventory, although some moderation in procurement prices was observed during 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, with PBIT up 22%. Despite trading restrictions and global volatility, crop expertise and nicotine exports supported growth.
The Paperboards and Packaging segment rose 7% YoY to ₹2115 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.
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