ITC Reports Mixed Q1 FY27 Results, FMCG Others Drive Revenue Growth While Cigarettes and Agri Business Face Headwinds

ITC Reports Mixed Q1 FY27 Results, FMCG Others Drive Revenue Growth While Cigarettes and Agri Business Face Headwinds​

ITC Limited reported its unaudited financial results for the quarter ended June 30, 2026. The consolidated figures showed Gross Revenue rising by 27.8% year-on-year (YoY), yet profitability saw declines across key operating segments amid macroeconomic uncertainties and input cost escalations.

Consolidated results indicated a strong rise in gross revenue, reaching ₹29410 Cr., up 27.8% compared to the previous year's Q1. However, Net Revenue declined by 11.0% YoY, registering at ₹18955 Cr. EBITDA was reported at ₹5181 Cr., marking a 24.0% decrease from the previous year. Profit Before Tax (PBT) stood at ₹5455 Cr., down 23.5% compared to Q1 FY26.

The company's performance across key segments varied significantly during the quarter. The FMCG Others segment delivered robust operational success, reporting a Segment Revenue increase of 12% YoY, with Segment PBIT up 21%. This growth was driven by Dairy, Snacks, Noodles, and Frozen Snacks, all seeing over 20% growth, complemented by mid-teens growth in Personal Care Products. The company's digital first and organic portfolio achieved an approximate Annual Recurring Revenue (ARR) of ₹1500 cr.

Cigarettes and Agri Business Face Margin Pressure​

The Cigarettes Business focused on a strategic response to unprecedented tax increases. The segment saw Gross Revenue surge by 81%, but Net Revenue declined by 25% due to the taxing environment. Management noted that staggered and agile pricing actions were in place to mitigate volume migration to illicit trade while protecting consumer franchise, supported by over 30 interventions into portfolio re-architecture.

In the Agri Business segment, underlying revenue grew 9% YoY, adjusting for timing difference in wheat business and disruptions related to West Asia conflict. The company observed strong growth in Value Added Agri Products (VAAP), particularly Spices and Fruits & Vegetables. However, Indian Leaf Tobacco business faced challenges from lower domestic demand, subdued global offtake, and delayed customer call-offs amidst the ongoing trade disruptions.

Paperboards and Fresh Food Business Boost Performance​

The Paperboards, Paper and Packaging segment sustained strong recovery momentum, reporting Segment Revenue up 9% YoY and Segment PBIT up 38%. Growth was attributed to robust traction in anchor grades of value added products, sustainable paperboards and packaging, alongside improvements in net realisations and a moderation in wood costs.

A new growth vector, the Fresh Food Business, continued its robust trajectory. The business reported Gross Merchandise Value (GMV) growing by 90% YoY, with ARR crossing ₹300 cr. This segment has scaled up to operate 75 cloud kitchens across five cities.

Key Financial Highlights Q1 FY27​

The following table summarizes the key financial performance metrics for the quarter ended June 30, 2026:


Note: FMCG Others saw Segment EBITDA margin improve by 55 basis points YoY, despite facing sharp cost increases in fuel, edible oil, and packaging inputs due to the West Asia conflict. Strategic inventory covers and commodity hedges mitigated some of these impacts.

ITC Stock Price Movement​

Shares of ITC Limited slipped by 1.42% to close at ₹281, registering a decline of ₹4.05 in post-market trading today. The stock saw a total traded volume of 16.83 million shares during the session.