India’s leading fast-moving consumer goods (FMCG) company, ITC Ltd on Friday, August 1, reported a steady standalone net profit of ₹4,912 crore for the April-June quarter as against ₹4,917 crore in the same period last year.
However, the company’s operating revenue during the quarter under review grew 20% y-o-y to ₹21,059 crore as against ₹17,593 crore in the same period a year ago. This strong growth in revenue was led by cigarettes, agribusiness and FMCG.
ITC reported stable operating performance as its earnings before interest, tax, depreciation and amortization (EBITDA) grew 3% to ₹6,261 crore in Q1 FY26 from ₹6,086 crore in the same quarter last fiscal.
In Q1 FY26, EBITDA margin declined to 30% from 34.5% in the same quarter last fiscal.
ITC said it delivered strong performance amid a challenging operating environment.
The company’s FMCG segment revenue grew 8.6% y-o-y (excluding notebooks). “Overall growth was 5.2% y-o-y; notebook industry continues to operate in deflationary conditions due to low-priced paper imports and opportunistic play by local/regional players; unseasonal rains during the quarter impacted beverage sales,” ITC said.
Staples, biscuits, dairy, premium personal wash, homecare and agarbatti also drove the FMCG segment growth. Prices of key commodities such as edible oil, wheat, maida, cocoa, soap, noodles, etc. remained elevated year-on-year, impacting margins.
The FMCG major said its businesses are engaged in mitigating this impact through focused cost management initiatives, portfolio premiumisation and balanced pricing measures.
For cigarettes, net segment revenue grew 7.7% year-on-year as differentiated and premium offerings performed well. The company said it continues to strengthen its position in the market through strategic portfolio and market interventions, with focus on competitive segments and combating illicit trade.
However, consumption of high-cost leaf tobacco stocks impacted margins and procurement prices witnessed softening in the current crop cycle.
ITC’s agribusiness revenue grew 39% year-on-year, driven by agricultural commodity trading opportunities and exports of leaf tobacco.
Paper business revenue grew 7% year-on-year, mainly led by increased sales. The paperboard, paper and packaging segment reflected the impact of low-priced supply flows in global markets, including India.
Ahead of earnings, ITC shares closed 1.13% higher at Rs 416.60 on the NSE.
