ITC digital-first and organic brands, led by Yoga Bar, 24 Mantra, Prasuma, Meatigo and Mother Sparsh, have reached an annual recurring revenue (ARR) of around Rs 1,500 crore, highlighting the company’s growing presence in newer consumer categories and emerging distribution channels. The portfolio continued to maintain its high-growth trajectory during the first quarter of FY27, even as the broader operating environment remained challenging due to elevated input costs and geopolitical uncertainty.
ITC’s FMCG business recorded 12 per cent year-on-year revenue growth during the quarter. Dairy, snacks, noodles and frozen snacks each grew by more than 20 per cent, while the personal care portfolio expanded at a mid-teens pace. The company’s newer brands have become an increasingly important part of its FMCG strategy as it expands beyond its traditional consumer businesses. Yoga Bar strengthens ITC’s presence in health and wellness, while 24 Mantra caters to the organic food segment. Prasuma and Meatigo add to its presence in premium and packaged meats, while Mother Sparsh operates in the personal care segment.
ITC also reported robust growth across newer distribution channels, including ecommerce, quick commerce and modern trade. The company attributed the performance to channel-specific joint business plans, collaborations, format-based assortments and category-focused sell-out strategies. The expansion of these channels is particularly relevant for digital-first and emerging brands, allowing ITC to broaden their reach while tailoring product assortments and promotional strategies to individual platforms and consumer segments.
The company’s FMCG growth came despite a challenging cost environment. ITC said input-cost inflation was particularly sharp across fuel, edible oil, soap noodles and packaging materials during the quarter.
Consumption Demand Remains Resilient
ITC said consumption demand remained resilient across both rural and urban markets during the quarter, although imported inflation remained a near-term concern. The company also flagged lower Kharif sowing compared with the year-ago period and a monsoon deficit as factors that could influence the consumption environment going forward.
The broader operating environment was further complicated by continuing geopolitical tensions in West Asia, which drove volatility in crude oil and crude-linked product prices and contributed to trade and supply-chain disruptions. ITC cautioned that prolonged geopolitical tensions, combined with emerging El Niño conditions that could weaken monsoons and intensify heatwaves, could have implications for economic growth, inflation and the current account.
FMCG Business Expands Amid Volatility
ITC’s consolidated revenue from operations rose 24 per cent year-on-year to Rs 29,523.30 crore in Q1 FY27, compared with Rs 23,821.48 crore in the corresponding period last year. However, consolidated profit declined 17.5% to Rs 4,508.79 crore from Rs 5,469.74 crore. Total income for the quarter stood at Rs 30,179.01 crore.
Within FMCG, the performance of the digital-first and organic portfolio points to ITC’s broader strategy of building businesses in categories aligned with changing consumer preferences, while using newer retail formats to expand distribution. With the portfolio now at an ARR of approximately Rs 1,500 crore, brands such as Yoga Bar, 24 Mantra, Prasuma, Meatigo and Mother Sparsh are becoming a more visible component of ITC’s next-generation FMCG strategy.
