ITC Lights Up Q1: Profit Climbs To Rs 5,244 Cr, Agri And Cigarettes Spark Revenue Boom

ITC Q1 FY26 Results: Puffing Steady Profits, FMCG Fires Up Revenue

ITC just dropped its Q1 FY26 results—and let’s just say, it’s more of a slow burn than a fireworks show. The tobacco-to-FMCG giant clocked in a 3% year-on-year jump in consolidated net profit at ₹5,244 crore. Revenue from operations? A healthy 19.5% rise to ₹23,129 crore, thanks to solid performances in its cigarette, agri, and FMCG divisions. Facing cost pressures? Yes. Cracking under it? Not quite. The company called the quarter “resilient,” with margins holding their ground through smart pricing, innovation, and cost control. Sure, some areas like paperboards and notebooks didn’t pull their weight, but ITC looks geared up for the coming quarters—especially with rural demand looking up and inflation finally catching a breather.

So, investor: are you lighting up your portfolio with ITC, or waiting for a better puff of profit?

ITC Q1 Profit Up 3%, Revenue Surges 20%

• ITC reported a net profit of ₹5,244 crore in Q1 FY26, marking a 3% increase from ₹5,092 crore in Q1 FY25.
• Revenue from operations rose nearly 20% year-on-year to ₹23,129 crore.
• Strong performance was driven by its India-based businesses, particularly in cigarettes, FMCG, and agri segments.
• The company called its quarterly performance “resilient” despite ongoing inflationary pressures.
• ITC maintained margins through a mix of cost control, pricing strategy, and portfolio innovation.
• Paperboards and notebooks segment remained flat, affecting overall segmental margins.
• Management expressed confidence moving into FY26, citing improving rural demand and easing inflation.

Cigarettes, Chips & Crops: Business Of ITC In India At Peak

ITC’s Q1 FY26 numbers aren’t just smoke and mirrors—the cigarette segment puffed its way to a near ₹9,554 crore revenue, clocking an 8% year-on-year growth. Legal volumes saw a bounce-back as the company continued to snuff out illicit trade competition. But that’s not all lighting up the balance sheet. ITC’s FMCG-Others segment—which includes your everyday essentials like staples, snacks, soaps, and beverages—served up steady growth of around 5–6%, touching ₹5,800 crore.

The real sizzler? ITC’s agri business. Fueled by export momentum and bulk commodity trading, this segment rocketed 39% year-on-year to ₹9,724 crore. Clearly, from farms to factory shelves, ITC has its revenue streams flowing from all corners.

So, what’s powering your portfolio—smokes, snacks, or soybeans? If this Q1 is any clue, ITC isn’t just surviving—it’s diversifying, and that too with style.

ITC Results: Hotels And Packaging See Mixed Results In Q1 FY26

• Packaging Revenue Rises, Margins Dip:
  ITC’s paperboards, paper & packaging segment saw revenue climb ~7% YoY to ₹2,116 crore, but faced margin pressure due to low global paper prices and high domestic wood costs.
• Hotel Business Shows Strong Momentum:
  The hotels segment reported ₹625 crore in revenue, marking an ~8% year-on-year rise, driven by increased occupancy and premium room offerings.
• Best-Ever Q1 for Hotels:
  ITC called this quarter its “best-ever Q1” in the hotels business, highlighting strong travel demand and operating leverage.
• EBITDA Margin Expansion:
  Hotel EBITDA margin improved by 140 basis points, reaching 33.9% for Q1 FY26, supported by better cost management and pricing strategies.

India Analysts Expect Margin Recovery Ahead

Analysts maintain a cautiously optimistic view on ITC’s outlook, expecting margin recovery in the second half of FY26. With commodity costs showing signs of easing and premiumisation efforts gaining ground, profitability could improve in coming quarters. While ITC delivered broad-based revenue growth across key segments—cigarettes, FMCG, and agri—some margin stress remained, particularly in FMCG-others and paperboard packaging. Experts believe that with inflation stabilising and rural demand gradually rebounding, ITC is well-positioned to regain operating leverage. Investor attention now shifts to how the company executes its premium product strategy and manages input cost dynamics through the rest of FY26.

(With Inputs)

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