ITC Q1 Result: Net profit flat at ₹4,912 crore, revenue grows 20% YoY

ITC reported stable operational performance as its EBITDA grew 3% to ₹6,261 crore in Q1 FY26. For cigarettes, net segment revenue increased 7.7% YoY as differentiated and premium offerings continue to perform well The country's leading fast-moving consumer goods (FMCG) company, ITC Limited, reported a flat standalone net profit at ₹4,912 crore on Friday, August 1, for the April-June quarter, from ₹4,917 crore in the same period last year. The company's revenue from operations, however, increased 20% year-on-year (YoY) to ₹21,059 crore during the quarter under review in contrast to ₹17,593 crore in the year-ago period. The strong growth in revenue was driven by cigarettes, agribusiness, and FMCG. ITC reported stable operational performance as its earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 3% to ₹6,261 crore in Q1 FY26 as against ₹6,086 crore in the corresponding quarter of the previous fiscal year. For Q1 FY26, the EBITDA margin contracted to 30% as against 34.5% YoY. Also read: Tata Power Q1 consolidated net profit surges 9.17% YoY to ₹1,060 crore ITC said it saw a resilient performance amidst a challenging operating environment. The company’s FMCG segment’s revenue grew 8.6% YoY (ex-Notebooks). “Overall growth at 5.2% YoY; 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 impact beverages sales,” ITC said. Staples, biscuits, dairy, premium personal wash, homecare, and agarbattis also drove growth for the FMCG segment. Prices of major commodities like edible oil, wheat, maida, cocoa, soap, noodles, etc. remain elevated on a YoY basis, weighing on margins. The businesses continued to mitigate the impact through focused cost management initiatives, portfolio premiumisation, and calibrated pricing actions, the FMCG major said. For cigarettes, net segment revenue increased 7.7% YoY as differentiated and premium offerings continue to perform well. Market standing continues to be reinforced through strategic portfolio and market interventions with a focus on competitive belts and countering illicit trade, the firm said. However, consumption of high-cost leaf tobacco inventory weighs on margins and moderation in procurement prices witnessed in the current crop cycle. ITC’s agribusiness revenue rose 39% YoY, driven by agri commodity trading opportunities and exports of leaf tobacco. Also read: Godrej Properties Q1 result: Net profit surges over 15% YoY to ₹600 crore; EBITDA expands 18% The paper business revenue rose 7% year-on-year, driven by higher volumes. The paperboard, paper, and packaging segment reflected the impact of the influx of low-priced supplies into global markets, including India. Ahead of its earnings, ITC shares settled at ₹416.60 apiece on NSE, rising 1.13%.