ITC Q1 FY26 result: Net profit up 3% at ₹5,244 cr; revenue rises 20%

ITC Q1 FY26 result: The company's revenue from operations grew 20 per cent to ₹23,129.35 crore from ₹19,350.08 crore in Q4 FY25

Consumer goods giant ITC on Friday reported net profit of ₹5,244 crore for the first quarter of fiscal year 2026, up 3 per cent year-on-year (Y-o-Y) from ₹5,091.59 crore during the same period last year.  However, profit dropped significantly on a sequential basis from ₹19,727 crore due to exceptional gain from discontinued operations, specifically related to the demerger of the company’s hotels business, in Q4 FY25.  

The company's revenue from operations grew 20 per cent to ₹23,129.35 crore from ₹19,350.08 crore in Q4 FY25, driven by cigarettes, agri business and other fast-moving consumer goods like notebooks. On a sequential basis, revenue rose 14.63 per cent from ₹20,176.41 crore in the previous quarter.

 

 

The company reported an earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin of 3 per cent Y-o-Y. The FMCG segment's Ebitda margins stood at 9.4 per cent compared to 11.3 per cent in Q1 FY25  and 8.9 per cent Q4FY25.   "Buoyancy in agriculture & service sector, moderating inflation and rural wage growth are some of the key positives; on the other hand, industrial growth, automobile sales, credit growth and electricity & fuel consumption remain subdued. Rural demand continued to demonstrate resilience; expectations of a normal monsoon and kharif crop sowing trends augur well for the rural economy. Early signs of recovery in urban consumption demand were visible during the quarter," the company said in a BSE filing.  "Lower inflation, reduction in interest rates & liquidity support by RBI, tax cuts announced in the recent Union Budget along with front loading of Government expenditure are expected to bolster the growth momentum going forward", it added.  Shares of ITC closed at ₹416.5 apiece on the BSE on Friday.