FMCG, paper and digital-first businesses support earnings growth, while agri exports remain under pressure due to disruptions linked to the West Asia conflict
Diversified conglomerate ITC on Thursday reported a 5 per cent year-on-year rise in consolidated net profit to Rs 5,113 crore for the quarter ended 31 March 2026, compared to Rs 4,875 crore in the corresponding quarter last year.
Revenue from operations declined 7 per cent year-on-year to Rs 16,050 crore from Rs 17,248.7 crore in the year-ago period.
FMCG Business Strong
The company’s fast-moving consumer goods (FMCG) business remained a key growth driver during the quarter, with segment revenue rising 15 per cent year-on-year. ITC said strong demand was witnessed across categories including staples, biscuits, snacks, frozen snacks, noodles, dairy products, premium personal wash, home care and agarbatti.
The FMCG-Others segment recorded a 51 per cent increase in segment results during the quarter. Excluding Sresta Natural Bioproducts, segment revenue growth stood at 14 per cent.
ITC said Ebitda margin for the segment expanded by nearly 200 basis points year-on-year to 11 per cent, excluding Sresta.
The company added that its digital-first and organic products portfolio grew around 60 per cent year-on-year, with annual recurring revenue crossing Rs 1,350 crore.
Paper, Cigarette Business
ITC’s paperboards and paper business continued to improve during the quarter, with profits rising 21 per cent year-on-year and 24 per cent sequentially.
The company attributed the growth to moderation in wood prices and a reduction in low-priced imports following the implementation of a Minimum Import Price on virgin multi-layer paperboard from 22 August 2025.
The cigarettes business reported 8.2 per cent year-on-year growth in net segment revenue and 5.1 per cent growth in segment results for the full financial year, despite higher taxes introduced from 1 February 2026.
ITC also said the notebooks business witnessed a recovery during the second half of the year despite continued competition from low-priced imports and regional players.
Agri Business Impacted
The company said its agri business was impacted by geopolitical disruptions, deferred sales and a high base effect during the quarter. Exports remained subdued due to disruptions linked to the ongoing conflict in West Asia.
ITC added that prices of key raw materials such as edible oil, soap noodles and packaging materials increased sharply towards the end of the quarter amid geopolitical tensions. The company said the impact was being addressed through supply-chain interventions, pricing actions and cost-management measures.
On a consolidated basis, gross revenue increased 17.1 per cent year-on-year during the March quarter, while Ebitda rose 6.9 per cent.
For the full financial year, consolidated gross revenue rose 10.3 per cent year-on-year, while Ebitda increased 5.4 per cent.
The company also said the merger of Wimco and Sresta Natural Bioproducts Private became effective from their respective appointed dates in 2025.
Dividend Announcement
ITC’s board recommended a final dividend of Rs 8 per ordinary share of Re 1 each for the financial year ended 31 March 2026, subject to shareholder approval at the company’s 115th Annual General Meeting scheduled for 23 July 2026.
The company had earlier declared an interim dividend of Rs 6.50 per share on 29 January 2026. Total dividend payout for FY26 stands at Rs 14.50 per ordinary share.
