ITC Q4FY25 results: Adjusted profit rises 3% to Rs 5,155.27 crore

ITC reports Rs 5,155 crore adjusted PAT in Q4FY25, with one-time hotel demerger gain pushing reported profit to Rs 19,727 crore amid rising input costs and weak demand

Cigarette-to-soap conglomerate ITC reported a 3 per cent year-on-year (Y-o-Y) increase in consolidated net profit from continuing operations at Rs 5,155.27 crore in the January-March quarter (Q4FY25), amid a subdued demand environment. Net profit in the same period last year stood at Rs 5,006.14 crore. 

The Bloomberg consensus estimate for net adjusted income was Rs 4,935.2 crore.

 

ITC’s reported profit after tax surged 285 per cent Y-o-Y to Rs 19,727.37 crore in Q4FY25 on the back of an exceptional gain. The sharp increase was due to a one-time exceptional gain of Rs 15,128.81 crore arising from an accounting entry related to the demerger of its hotel business, which became effective from 1 January 2025.

 

The company reported consolidated gross revenues of Rs 20,376.36 crore in Q4FY25, up 9.8 per cent Y-o-Y. Revenue net of excise stood at Rs 18,765 crore, up 10.1 per cent Y-o-Y and slightly ahead of the Bloomberg estimate of Rs 18,142.4 crore.

 

Sequentially, gross revenue rose marginally by 0.1 per cent, while net profit from continuing operations increased by 7.2 per cent.

 

For the full year (FY25), ITC’s gross revenue at Rs 81,612.78 crore was up 10.4 per cent Y-o-Y. Net profit from continuing operations in FY25 stood at Rs 20,036.47 crore, marginally down from Rs 20,190.82 crore.

 

ITC described its performance as “resilient” amid a subdued demand environment and sharp escalation in input costs.

 

The company noted that the cumulative impact of inflationary pressures on household savings, coupled with muted wage growth in recent years, continued to weigh on consumption expenditure—particularly in urban markets. The weakness in consumption was reflected in the muted volume growth of the FMCG sector. 

 

However, ITC expects consumption expenditure to improve progressively, led by a recovery in rural demand backed by a good monsoon, along with improvement in urban demand amid lower inflation and tax cuts announced in the Union Budget.

 

Revenue from all operating business segments increased in Q4FY25. The heavy-lifting cigarettes segment recorded revenue of Rs 9,228.66 crore, up 6.2 per cent from the year-ago period. Pre-tax profit at Rs 5,402.57 crore was 4.8 per cent higher Y-o-Y.

 

The non-cigarettes FMCG segment posted revenue of Rs 5,503 crore, up 3.7 per cent Y-o-Y. 

 

However, severe inflationary pressures were observed in the prices of edible oil, wheat, maida, potato, cocoa, packaging inputs, etc. ITC said this was partially mitigated through focused cost management initiatives, portfolio premiumisation, and calibrated pricing actions. Pre-tax profit from the segment at Rs 346.18 crore in Q4FY25 was sharply down by 27.9 per cent from the year-ago period.

 

Growth in the agri business segment was largely driven by leaf tobacco, value-added agri products, and rice exports. Revenue from the segment in Q4FY25 stood at Rs 3,694.64 crore, up 17.8 per cent from the year-ago period. Pre-tax profit at Rs 252.71 crore was higher by 35.5 per cent Y-o-Y.

 

The paperboards, paper and packaging segment continued to be impacted by low-priced Chinese and Indonesian supplies in global markets, including India. Domestic demand was also soft, while wood prices surged to unprecedented levels.

 

Revenue from the segment in Q4FY25 at Rs 2,188.69 crore was higher by 5.6 per cent. However, pre-tax profit at Rs 194.96 crore declined by 33 per cent Y-o-Y.

 

The board recommended a final dividend of Rs 7.85 per share, taking the total dividend for the financial year ended 31 March 2025 to Rs 14.35 per share.