ITC Chairman Puri unveils ₹20,000 crore expansion strategy at AGM 2025

Chairman Sanjiv Puri says 65 per cent of ITC's revenue now comes from non-cigarette businesses as the firm prioritises domestic growth under 'Bharat First' strategy

Diversified conglomerate ITC Ltd plans to invest ₹20,000 crore over the medium term to scale up its manufacturing operations across multiple sectors, Chairman Sanjiv Puri announced at the company’s Annual General Meeting (AGM) on Friday.

 

“Our focus is on value accretion through new brand launches while reinforcing our footprint across India,” Puri said.

 

The investment will enhance ITC’s production capacity under its long-term growth strategy, with eight new manufacturing units already established in recent years. Puri reiterated ITC’s commitment to its ‘Bharat First’ approach, which prioritises building a strong domestic presence before expanding globally.

 

Q1 profit dips, but revenue grows 7.5%

Earlier this month, ITC reported a marginal 0.26 per cent year-on-year decline in consolidated net profit for the April–June quarter (Q1 FY26), which stood at ₹5,091.59 crore, compared to ₹5,104.93 crore a year ago. The profit fell short of Bloomberg’s estimate of ₹5,451 crore. However, consolidated gross revenue rose by 7.5 per cent to ₹20,029.60 crore.

 

ITC described the quarterly performance as resilient despite a challenging macroeconomic environment. Growth was supported by cigarettes and non-cigarette FMCG, even as other segments faced pressure from subdued demand and a high base.

 

At the AGM, Puri highlighted that 65 per cent of ITC’s revenue now comes from non-cigarette businesses.

 

Cigarettes see 5.8% revenue growth

The cigarettes segment recorded a 5.8 per cent year-on-year increase in revenue to ₹8,842.22 crore. Pre-tax profit rose 6.29 per cent to ₹5,255.06 crore, aided by tax stability and enforcement measures that helped recover market share from illicit trade.

 

FMCG business expands with packaged food and personal care

Revenue from non-cigarette FMCG rose 6.3 per cent to ₹5,498.80 crore, with pre-tax profit increasing 10.4 per cent year-on-year to ₹479.17 crore. ITC attributed the growth to strong demand in packaged food and personal care categories.

 

Hotel segment grows, but profits dip

The hospitality segment saw revenue climb 14.29 per cent to ₹713.3 crore, but pre-tax profit declined 9 per cent to ₹122.21 crore. The dip was attributed to the operational impact of the newly launched luxury hotel, ITC Ratnadipa in Colombo. The company also added seven new managed properties during the quarter, including its first overseas Fortune Resort in Bhaktapur, Nepal.

 

Paperboards face pricing pressure

The Paperboards, Paper and Packaging segment recorded a 6.78 per cent drop in revenue to ₹1,976.85 crore, with pre-tax profit plunging 45.6 per cent to ₹256.15 crore. ITC cited high domestic wood prices and competition from low-cost Chinese imports as key challenges.

 

Agri-business grows, but margins tighten

Agri-business delivered strong top-line growth, with revenue up 22.19 per cent to ₹6,997.89 crore. However, pre-tax profit declined 2.2 per cent to ₹344.60 crore due to cost inflation in leaf tobacco and depreciation related to a new nicotine derivatives facility.