ITC's Q1 profit flat at ₹4,912 cr, revenue up 20% on strong agri, FMCG growth

FMCG giant ITC has recorded flat growth in standalone profit at ₹4,912 crore for the quarter ending June 30, 2025, compared to ₹4,917 crore a year ago, missing brokerages' estimates of about ₹5,000 crore amid the global headwinds caused by geopolitical tensions, evolving trade policy dynamics and heightened uncertainty and volatility in the operating environment.

The company's revenue surged 20% to ₹21,059 crore in the said quarter, up from ₹17,593 crore a year ago. ITC says high-frequency indicators for the quarter suggest mixed trends. "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." For ITC, the rural demand continues to show resilience, and there are early signs of recovery in urban consumption demand.

Here's how ITC's verticals performed in the April-June quarter of FY26:

FMCG businesses

The FMCG businesses witnessed a pick-up in growth momentum, with overall growth at 5.2% YoY. The company says the notebook industry continues to operate under deflationary conditions due to low-priced paper imports and opportunistic play by local or regional competition. The beverages category was impacted by unseasonal rains during the quarter, says the company. It adds that segment EBITDA margin improved 50 bps QoQ despite the prices of major commodities (viz. edible oil, wheat, maida, cocoa, soap noodles, etc.) remaining elevated on a YoY basis.

Branded packaged foods

‘Aashirvaad’ Atta posted robust growth in Q1, and the value-added portfolio, consisting of Multigrain, Select and Sugar Release Control Atta, also posted healthy growth, driven by superior value propositions. The company says the portfolio was augmented with the launch of ‘Aashirvaad Boga Atta’ in Assam, designed to meet the culinary preferences of the region. ‘Aashirvaad Chakki’ Atta range (Premium Sehori, Sehori, Lokwan and Khapli atta), specially developed for the Mumbai market, continues to garner excellent consumer response, it adds.

Cigarettes

The net segment revenue rose 7.7% YoY, with segment profit before tax recording 3.7% YoY growth, driven by volume-led growth supported by a strategic portfolio and market interventions focused on competitive belts to counter illicit trade. "As seen in the past, stability in taxes on cigarettes, backed by deterrent actions by enforcement agencies, enables volume recovery for the legal cigarette industry from illicit trade, leading to higher demand for Indian tobaccos and bolstering revenue to the exchequer from the tobacco sector," says the company.

Agri business

The segment revenue growth in the quarter was 39% YoY, driven by trading opportunities in bulk commodities and the exports of leaf tobacco. The segment profit before tax grew by 22% YoY. The company claims the revenue growth was driven by the agile execution of trading opportunities in bulk commodities, leveraging a multi-channel and digitally powered agri commodity sourcing network. The business provided strategic sourcing support, with traceability to the branded packaged foods and agri businesses, with sharply aligned procurement strategies in line with category-relevant market dynamics.

Paperboards, paper and packaging

The segment revenue grew 7% YoY, even though the operating environment remained challenging during the quarter, with a sustained influx of low-priced supplies into global markets, including India, elevated domestic wood prices and subdued realisations, says ITC. It adds that structural advantages of the integrated business model, industry 4.0 initiatives, strategic investments in high-pressure recovery boilers and proactive capacity augmentation in value-added paperboards aided in partly mitigating pressure on margins.

FoodTech business

The business, which leverages ITC's institutional strengths in food science & manufacturing, FMCG food brands and culinary expertise to tap into the fast-growing online food services segment, saw its GMV cross ₹100 crore in FY25. The full-stack food-tech platform has already scaled up to around 60 cloud kitchens across 5 cities, says ITC.