At the operating level, earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 27.9% year-on-year to ₹4,514 crore, compared with ₹6,262 crore in the same period last year. The EBITDA margin stood at 26.7% in the quarter, compared with 31.7% in the year-ago period.
The company’s fast-moving consumer goods (FMCG) business revenue growth stood at 12% during the quarter, compared with the CNBC-TV18 poll estimate of 12-15% growth.
ITC’s first-quarter performance was below CNBC-TV18 poll estimates. Net profit was estimated at ₹3,990 crore, revenue at ₹17,362 crore, EBITDA at ₹4,966 crore, and EBITDA margin at 28.6%.
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FMCG segment
ITC’s FMCG segment delivered 12% year-on-year revenue growth in the first quarter, with revenue excluding staples rising 16%. Segment profit before interest and tax (PBIT) increased 21% year-on-year.
Dairy, snacks, noodles, frozen snacks and personal care products led growth, with dairy, snacks, noodles and frozen snacks recording more than 20% growth. The company also reported a strong rebound in notebook sales, continued momentum in its premium portfolio and growth across new-generation channels.
The FMCG segment’s EBITDA margin improved by 55 basis points year-on-year, excluding Sresta. The company said inflationary pressures from higher fuel, edible oil, soap noodles and packaging input costs due to the West Asia conflict were partly cushioned through strategic inventory covers and commodity hedges. ITC continued cost management measures, smart net revenue management and price-volume balancing to manage the impact.
The company’s digital-first and organic portfolio, comprising Yogabar, 24 Mantra, Prasuma, Meatigo and Mother Sparsh brands, continued its growth trajectory with annual recurring revenue (ARR) of around ₹1,500 crore. New-generation channels, including e-commerce, quick commerce and modern trade, recorded growth through channel-specific business plans, collaborations, format-based assortments and category-specific sell-out strategies.
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Cigarettes business
ITC’s cigarettes business undertook staggered and calibrated pricing actions following the increase in taxes, aimed at managing the risk of volume migration to illicit trade while protecting its consumer base. The company implemented multiple measures to rework and strengthen its product portfolio by leveraging trademarks across segments and price points, along with focused execution to improve market responsiveness.
Paper segment
The company’s paper segment continued its recovery momentum, with revenue rising 9% year-on-year and segment PBIT increasing 38%. PBIT margin expanded by 200 basis points.
Growth was driven by value-added products, sustainable paperboards and packaging, exports, improved net realisations, moderation in wood costs, and growth across flexible and carton packaging portfolios. Cost pressures linked to the West Asia conflict were managed through cost measures and pricing actions.
Agri business
The agri business segment reported underlying revenue growth of 9% year-on-year, adjusting for wheat business timing differences and trade disruptions caused by the West Asia conflict. Growth was supported by value-added agri products, particularly spices and fruits and vegetables.
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The Indian leaf tobacco business was impacted by lower domestic demand, subdued global offtake and delayed call-offs amid West Asia-related disruptions. Exports of nicotine and nicotine derivative products continued to scale up through the company’s Mysuru facility.
ITC’s overall gross revenue increased 28% year-on-year, while net revenue declined 14%. Excluding the agri business, net revenue declined 6%. Consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 28%, while profit after tax (PAT) fell 27%.
The company’s fresh food business continued its growth momentum, with gross merchandise value (GMV) rising 90% year-on-year and ARR crossing ₹300 crore. The business expanded its footprint to 75 cloud kitchens across five cities.
On a consolidated basis, ITC reported strong performance from group companies, including ITC Infotech India, Surya Nepal, Sproutlife Foods (a subsidiary from April 1, 2026) and ITC Hotels.
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The FMCG segment’s consolidated revenue grew 15% year-on-year, while segment results increased 22%. Consolidated gross revenue rose 28%, while EBITDA and PAT before exceptional items declined 24% and 23% year-on-year, respectively.
Shares of ITC Ltd ended at ₹280.95, down by ₹4.30, or 1.51%, on the BSE.
