ITC Limited, one of India’s most diversified conglomerates, announced its Q1 FY26 results on 1st August 2025, demonstrating robust revenue growth but a modest increase in profits. Despite challenges in the FMCG and agri-business environment, ITC posted consolidated revenue of ₹23,129.35 crores and profit after tax (PAT) of ₹5,244.20 crores.
The company’s 19.53% YoY revenue growth was driven by its FMCG, hotels, and paperboards businesses, alongside resilience in its traditional cigarette segment. However, profit growth remained moderate at 3% YoY, reflecting input cost pressures and slower margin expansion. ITC’s performance reflects a strong foundation for long-term growth, supported by product diversification, cost efficiency, and shareholder-friendly initiatives.
The following sections provide an in-depth breakdown of ITC’s Q1 FY26 performance, analyzing its consolidated and standalone financials, segment performance, share price trajectory, and the long-term outlook for investors.
1. Consolidated Financial Performance
The consolidated results reflect ITC’s overall performance across its diversified operations, including FMCG, hotels, agri-business, paperboards, and the cigarette segment.
Table 1: ITC Consolidated Financial Performance (₹ in crores)
| Particulars | Q1 FY26 | Q1 FY25 | YoY Growth |
|---|---|---|---|
| Revenue from Operations | ₹23,129.35 | ₹19,350.08 | 19.53% |
| Profit Before Tax (PBT) | ₹7,498.68 | ₹7,227.54 | 3.75% |
| Profit After Tax (PAT) | ₹5,244.20 | ₹5,091.59 | 3.00% |
Analysis:
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Revenue growth of 19.53% YoY was led by FMCG and hotel business recovery, signaling ITC’s resilience in a competitive environment.
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PAT growth of only 3% YoY reflects slightly compressed margins, primarily due to rising raw material costs and muted growth in cigarette profitability.
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PBT growth remained moderate at 3.75% YoY, suggesting stable operations but cautious cost management.
This consolidated performance demonstrates ITC’s ability to grow revenue even in periods of fluctuating commodity prices and regulatory pressures, although profit expansion remains gradual.
2. Standalone Financial Performance
The standalone performance of ITC highlights the results of its core operations in India, excluding the impact of subsidiaries.
Table 2: ITC Standalone Financial Performance (₹ in crores)
| Particulars | Q1 FY26 | Q1 FY25 | YoY Growth |
|---|---|---|---|
| Revenue from Operations | ₹21,058.98 | ₹17,593.02 | 19.70% |
| Profit Before Tax (PBT) | ₹6,923.35 | ₹6,785.31 | 2.03% |
| Profit After Tax (PAT) | ₹4,912.36 | ₹4,819.93 | 1.92% |
Analysis:
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Standalone revenue growth of 19.70% YoY underscores strong domestic consumption trends, particularly in the FMCG and cigarettes segments.
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PAT growth of 1.92% YoY reflects moderate earnings expansion, limited by slightly higher input and marketing costs.
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The small gap between standalone and consolidated growth indicates that subsidiaries (like hotels and paperboards) contributed meaningfully to the overall performance.
3. Segment-wise Revenue and Profit Analysis
ITC’s diverse portfolio allows it to balance cyclical risks.
Table 3: Indicative Segment-Wise Revenue Contribution (Q1 FY26)
| Segment | Revenue (₹ crore) | Share (%) | YoY Trend |
|---|---|---|---|
| Cigarettes | ~7,900 | ~34% | Stable, low growth |
| FMCG – Others | ~5,000 | ~22% | Strong growth in foods & personal care |
| Hotels | ~1,200 | ~5% | High YoY growth due to tourism rebound |
| Paperboards & Packaging | ~2,000 | ~9% | Supported by packaging demand |
| Agri-business | ~7,000 | ~30% | Moderate growth; exports steady |
Key Insights:
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Cigarettes remain ITC’s backbone, contributing ~34% to revenue, with stable but low growth due to regulatory constraints.
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FMCG other than cigarettes continues its high growth trajectory, supported by packaged foods, personal care, and hygiene products.
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Hotel segment rebounded strongly, driven by domestic tourism and corporate events, signaling post-pandemic recovery.
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Agri-business faced a moderate growth due to export dynamics and commodity price volatility.
4. Operational Drivers and Strategic Initiatives
Several strategic factors underpinned ITC’s Q1 FY26 performance:
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FMCG Expansion: Launches in snacking, hygiene, and personal care categories contributed to high revenue growth.
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Sustainability & Agri-Value Chain: ITC leveraged its e-Choupal network to optimize agri-trading and procurement efficiencies.
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Hotels Recovery: ITC’s premium hotels segment capitalized on the post-pandemic travel surge, improving occupancy rates and revenue per available room (RevPAR).
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Digitalization & Supply Chain Efficiency: Enhanced automation and cost optimization supported EBITDA margins, despite inflationary pressures.
5. Share Price Movement and Investor Perspective
ITC’s share price showed mixed momentum after the Q1 results.
Table 4: ITC Share Price Highlights (4th August 2025)
| Metric | Value (₹) |
|---|---|
| Opening Price | 419.20 |
| Day High | 421.85 |
| Day Low | 416.10 |
| Last Traded Price | 417.25 |
| 1-Year Return | 12.93% |
| 5-Year Return | 117.03% |
| Maximum Return | 2,631.08% |
Analysis:
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ITC shares opened positively but ended slightly lower, reflecting profit booking after the earnings announcement.
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Long-term investors continue to enjoy stellar returns, with a five-year gain of 117% and maximum return exceeding 2,600%, highlighting ITC’s wealth creation capacity.
6. Historical Performance and Peer Comparison
ITC’s consistent revenue growth outpaces peers in the FMCG and diversified space, particularly in terms of long-term shareholder returns.
Table 5: Peer Comparison Snapshot (FY26 Q1)
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | 1-Year Return (%) |
|---|---|---|---|
| ITC | 23,129 | 5,244 | 12.93 |
| Hindustan Unilever | ~15,500 | ~2,750 | 8.50 |
| Nestle India | ~4,800 | ~1,100 | 10.20 |
| Godrej Consumer | ~3,200 | ~620 | 7.10 |
ITC outperforms in revenue scale and long-term returns, though its profit growth this quarter is modest compared to high-margin peers like Nestle.
7. Risks, Opportunities, and Market Outlook
Opportunities:
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Expanding FMCG non-cigarette business for long-term growth.
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Hotel segment recovery to boost margins.
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Sustainability and agri-trade initiatives to enhance rural presence.
Risks:
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Regulatory pressure on cigarettes may limit segmental growth.
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Commodity price volatility could affect margins.
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Slow PAT growth signals margin constraints if costs remain elevated.
Market Outlook:
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ITC remains a stable long-term investment, favored for its dividend yield, diversified revenue streams, and defensive business model.
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Analysts anticipate steady single-digit profit growth in the short term, with long-term upside driven by FMCG scaling.
8. Conclusion and Investment Takeaways
ITC’s Q1 FY26 results highlight a strong revenue surge with stable profitability. While PAT growth of 3% YoY appears modest, the 19.5% jump in revenue underlines healthy demand across segments, particularly FMCG and hotels.
Investor Takeaways:
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Stable Growth: ITC remains a defensive, dividend-paying stock, ideal for long-term portfolios.
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Moderate Short-Term Returns: Stock momentum may remain sideways until profit margins expand.
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Long-Term Potential: FMCG expansion, hotels revival, and agri-chain digitalization will drive multi-year growth.
Overall, ITC’s Q1 FY26 results reflect strength in top-line growth and operational stability, positioning it as a resilient player in India’s consumer and agri-business ecosystem.
