Crisp Earnings, Smooth Execution: ITC’s ₹49.12 Billion Q1 Profit Delivers

In a steady start to FY26, Indian conglomerate ITC Ltd reported a standalone revenue from operations of ₹210.59 billion and a net profit of ₹49.12 billion for the quarter ended June 2025. The profit figure was almost exactly in line with market expectations, with the IBES consensus pegged at ₹49.1 billion.

 

The results reflect a year-on-year revenue growth of 7.3%, underscoring ITC’s resilience across its diversified business segments—FMCG, cigarettes, hotels, agri-business, and paper products—despite macroeconomic headwinds including extreme heatwaves and muted consumer sentiment.

 

FMCG – Others ITC’s non-cigarette FMCG segment delivered a solid performance, with revenue growing 6.3% year-on-year. Categories like staples, snacks, dairy, personal care, and homecare led the charge. The segment’s EBITDA margin expanded by 25 basis points to 11.3%, aided by strategic pricing and commodity cost stabilization.

 

Cigarettes The cigarette business continued its steady climb, with net segment revenue rising 7% and segment profit before interest and tax (PBIT) up 6.5%. ITC credited its success to premium product innovation, agile execution, and a sustained crackdown on illicit trade. The segment maintained its market dominance amid stable taxation and enforcement support.

 

Hotels ITC’s hospitality arm posted a 10.9% increase in revenue and an 11.5% rise in PBIT, despite fewer wedding dates and heatwave-related travel disruptions. The launch of ITC Ratnadipa in Colombo in April 2024 added a new feather to its international portfolio, receiving strong guest feedback and boosting brand visibility.

 

Agri Business The agri segment saw a robust 22.2% jump in revenue, driven by value-added products, leaf tobacco, and wheat. However, margins were pressured by rising input costs and government-imposed trade restrictions aimed at ensuring domestic food security. ITC continues to engage with farmers through its Climate Smart Agriculture program, now covering over 29 lakh acres and 7.5 lakh farmers.

 

Financial Snapshot While the company’s EBITDA rose marginally by 0.7% to ₹6,295 crore, the EBITDA margin dipped to 37% from 39.5% a year ago. This reflects cost pressures in certain segments, although strategic cost management helped cushion the impact.

 

Strategic Moves & Outlook ITC’s shareholders approved the long-awaited demerger of its hotel business, with the petition now filed with the NCLT. This move is expected to unlock value and allow sharper focus on hospitality growth.

 

Looking ahead, ITC is expected to:

Despite a slight dip in stock price post-results—closing at ₹493.75 on the BSE, down 0.26%—analysts remain optimistic about ITC’s long-term trajectory. Its diversified revenue streams and strategic agility make it a strong contender in India’s evolving consumer landscape.

 

Sources: Business Today,  CNBC TV18, ITC Official Q1 FY25 Press Release