ITC Q1FY26 results: Net profit up 3% at ₹5,244 cr, revenue rises 19.53%

Cigarette-to-soap conglomerate ITC on Friday reported a 3 per cent year-on-year (Y-o-Y) increase in consolidated net profit (attributable to owners of the company) at ₹5,244.20 crore in the first quarter of 2025-26 (Q1FY26) largely led by cigarettes and agricultural businesses. In the year-ago period, its net profit was at ₹5,091.59 crore. 

The company reported consolidated gross revenue of ₹23,129 crore for Q1FY26, up by 19.53 per cent compared to ₹19,350 crore a year ago. 

The net revenue at ₹21,495 crore came in higher than the Bloomberg consensus estimate of ₹18,753.8 crore. The estimate for profit was ₹5,113.5 crore. 

Sequentially, gross revenue was up 13.51 per cent from ₹20,376 crore. The profit in the previous quarter was at ₹19,727 crore, which included an exceptional gain from an accounting entry related to the demerger of its hotels business, which became effective from January 1, 2025.

 

 

ITC described the performance as “resilient” amid a challenging operating environment. Group companies ITC Infotech, Surya Nepal and ITC Hotels also contributed to the consolidated performance.

 

The company in its commentary said that buoyancy in agriculture and service sector, moderating inflation, and rural wage growth were some of the key positives. On the other hand, industrial growth, automobile sales, credit growth, and electricity & fuel consumption remained subdued.

 

Rural demand continued to demonstrate resilience while early signs of recovery in urban consumption demand were visible during the quarter, the company said. 

 

The heavy-lifting cigarette segment clocked an 8.04 per cent Y-o-Y growth in revenue at ₹9,553.86 crore in Q1FY26. Pre-tax profits from the segment was at ₹5,498.93 crore, a 4.64 per cent increase compared to the year-ago period.

 

The revenue from the non-cigarette fast-moving consumer goods (FMCG) segment in Q1FY26 stood at ₹5,800.44 crore, up 5.5 per cent Y-o-Y. Pre-tax profit for the period under review was at ₹399.03 crore, down 16.7 per cent, as elevated prices of major commodities (edible oil, wheat, maida, cocoa, soap, noodles, etc.) weighed on margins. The company also said that the notebooks industry continued to operate under deflationary conditions on account of low-priced paper imports and opportunistic play by local/regional players.

 

The digital-first and organic portfolio — comprising Yogabar, Mother Sparsh, Prasuma, Meatigo, and 24 Mantra brands — clocked an annual revenue run rate of ₹1,000 crore.

 

The agri business segment was driven by trading opportunities in bulk commodities and exports of leaf tobacco. The segment revenue at ₹9,723.84 crore in Q1FY26 was up 38.95 per cent Y-o-Y. Pre-tax profit at ₹434.67 crore was up 26.13 per cent Y-o-Y.

 

The operating environment remained challenging for the paperboards, paper and packaging segment, due to sustained influx of low-priced supplies into India, elevated domestic wood prices, and subdued realisations, the company said.

 

Revenue from the segment was at ₹2,116.62 crore in Q1FY26, up 7.07 per cent Y-o-Y. However, pre-tax profit at ₹151.40 crore was down by 40.89 per cent.