The company’s revenue from operations has surged to Rs 23,129.35 crore in the first quarter of the current fiscal year from Rs 19,350.08 crore in Q1FY25
Led by the increased demand for cigarettes and fast-moving consumer goods (FMCG), ITC has seen a 3 per cent year-on-year (YoY) uptick in its consolidated net profit for the first quarter of the current financial year. The net profit attributable to the owners of the parent rose to Rs 5,244.20 crore in Q1FY26 from Rs 5,091.59 crore in Q1FY25.
The financial results of the company revealed a 20 per cent YoY growth in its revenue from operations, which surged to Rs 23,129.35 crore during the recently concluded quarter as compared to Rs 19,350.08 crore in Q1FY25. The total expenses of the company also grew to Rs 16,752.31 crore in Q1FY26 from Rs 13,217.97 crore in Q1FY25.
The FMCG sector witnessed a pickup in revenue growth. The company stated that staples, biscuits, dairy, premium personal wash, homecare and agarbattis led the growth. Premium portfolio and new generation channels sustain their high growth trajectory, ITC noted in a regulatory filing.
“High frequency indicators for the quarter suggest mixed trends. Buoyancy in agriculture and 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 and fuel consumption remain subdued,” the company highlighted.
The notebooks industry continues to operate under deflationary conditions on account of low-priced paper imports and opportunistic play by local, regional players. Unseasonal rains during the quarter impacted beverage sales, the company said.
Cigarettes net segment revenue was up 7.7 per cent YoY as differentiated and premium offerings continue to perform well. ITC highlighted that consumption of high-cost leaf tobacco inventory weighs on margins, and moderation in procurement prices is witnessed in the current crop cycle. Agri business segment revenue was up 39 per cent YoY, driven by agri commodity trading opportunities and exports of leaf tobacco.
ITC emphasised that rural demand continued to demonstrate resilience and expectations of a normal monsoon and kharif crop sowing trends augur well for the rural economy. Early signs of recovery in urban consumption demand were visible during the quarter, the company said.
