ITC's consumer spending on FMCG products has demonstrated consistent growth over the past three years, reaching ₹37,000 crore in FY26, according to the company's latest annual report. The growth trajectory shows a steady climb from nearly ₹29,000 crore in FY23 to ₹32,500 crore in FY24, reflecting a 12 per cent year-on-year increase. In FY25, consumer spending further climbed 4.6 per cent to around ₹34,000 crore, before accelerating to the current ₹37,000 crore level. The company has successfully expanded its consumer franchise, adding about ₹5,000 crore in consumer spend over the two years from FY23 to FY25. As per Business Standard, this growth was driven by strong brand growth, acquisitions and rising household reach.
ITC's aggressive expansion beyond its flagship Aashirvaad brand is yielding positive results, with digital-first acquisitions achieving significant growth momentum. Brands such as Sresta Natural Bioproducts (24 Mantra Organic), Sproutlife Foods (Yoga Bar), Mother Sparsh Baby Care, and Ample Foods (Prasuma & Meatigo) grew 60% during FY26, according to the latest annual report. Together, these high-growth acquisitions are clocking an annual revenue run rate (ARR) of over ₹1,350 crore in FY26. However, some of these businesses are yet to turn profitable, with Ample Foods reporting a net loss of ₹5.2 crore in FY26, Sproutlife Foods posting a ₹9.84 crore loss compared to ₹69.4 crore loss in the previous year, and Mother Sparsh recording a ₹2.18 crore loss in FY26. These three brands are classified as associates of ITC Ltd, while Sresta Natural Bioproducts was amalgamated into the company and does not report separate financials.
ITC reported a consolidated revenue of ₹89,913.33 crore in FY26, representing a 10% increase over the previous year, according to the company's annual report. The FMCG portfolio (excluding cigarettes) achieved consumer spending of ₹37,000 crore, including trade margins and GST. ITC's FMCG businesses recorded segment revenue of ₹24,209.75 crore in FY26, representing growth of 10.1 per cent over the previous year. However, cigarettes remain the largest contributor to ITC's revenue, at ₹37,099.65 crore, representing 45.9 per cent of its gross revenue from the sale of products and services of ₹80,867.49 crore. The non-cigarette FMCG segment profit rose 14.1 per cent to ₹1,802.63 crore, reflecting benefits of scale expansion, improved portfolio mix, disciplined cost management and enhanced supply chain efficiencies. The company launched nearly 100 new products across target markets in FY26, demonstrating continued innovation in its FMCG portfolio.
ITC has undertaken strategic acquisitions in the digital-first and organic space, including Sresta Natural Bioproducts (24 Mantra Organic), Sproutlife Foods (Yoga Bar), Mother Sparsh Baby Care (Mother Sparsh), and Ample Foods (Prasuma & Meatigo). These acquisitions delivered "robust" growth during the year and together are clocking an annual revenue run rate of over ₹1,350 crore. As per Mint, ITC said these interventions are expected to further reinforce the company's presence and market standing in high-growth and future-facing businesses. The company's long-term FMCG strategy focuses on strengthening core brands, extending trusted mother brands into value-added adjacencies, and creating new growth engines by leveraging institutional strengths in areas such as agri sourcing, packaging, cuisine expertise and consumer insights. Another recent addition is the fresh food business, which operates four brands—ITC Master Chef Creations, ITC Aashirvaad Soul Creations, ITC Sunfeast Baked Creations, and Sansho by ITC Master Chef—through more than 70 cloud kitchens in five cities.
Despite strong growth, ITC acknowledged challenges from the ongoing conflict in West Asia, which has triggered a sharp rise in key input and fuel costs, heightening near-term inflationary pressures. "ITC continues to take proactive measures to mitigate the impact of such headwinds across all nodes of operations, sustain competitiveness and growth momentum," the company stated. The company noted that domestic economic activity remained resilient, particularly in the second half of the year, supported by private consumption, improving rural and urban demand conditions, income tax rate cuts, GST rate rationalisation and monetary easing. However, ITC cautioned that a prolonged disruption, coupled with emerging El Niño conditions that could weaken the monsoon and intensify heatwaves, poses risks to growth, inflation and the current account. These factors may also have second-order impacts on consumer sentiment and demand conditions. Shares of ITC closed marginally lower at ₹290, down 0.12% on the National Stock Exchange on Thursday, underperforming the benchmark Nifty 50, which gained 0.14%.
