ITC Ltd delivered robust March quarter results with revenue from operations rising 17% year-on-year to ₹21,695 crore and standalone net profit increasing 5% to ₹5,113 crore. According to the latest financial results, the revenue growth was primarily driven by a nearly 30% rise in cigarette sales and 15% growth in the FMCG-Others business. The cigarettes division posted healthy numbers with revenue from the FMCG-cigarettes segment rising 32% YoY to ₹11,066 crore and segment profit increasing 7% to ₹5,488 crore. The sharp rise in revenue partly reflected the impact of higher taxation flowing through gross sales, with excise duty during the quarter jumping sharply to ₹5,644 crore from ₹1,246 crore in the year-ago period following recent taxation changes in cigarettes.
Despite strong cigarette sales growth, ITC cautioned that higher taxes imposed in February may encourage illicit sales across the tobacco value chain. As reported by Mint, the company warned that higher cigarette taxes could boost illegal trade and hurt farmers, retailers and MSMEs, thereby sub-optimizing the revenue potential of the tobacco sector. To combat this challenge, ITC is introducing staggered pricing action and leveraging its portfolio of well-known brands to maintain market position. The company noted that domestic demand for leaf tobacco in the near term is expected to be subdued due to the significant tax increase.
ITC's FMCG business demonstrated exceptional performance with strong traction in established brands including Aashirvaad, Sunfeast, Savlon, and Mangaldeep. According to the latest results, revenue from FMCG-others rose 15% YoY to ₹6,304 crore with segment profit jumping to ₹521 crore from ₹345 crore, reflecting growth of nearly 51%. The business includes packaged foods, personal care, education and stationery products, dairy, beverages and agarbattis. Growth in online retail and modern trade remained strong, with these channels now accounting for over a third of FMCG sales. Total FMCG revenue increased 25% YoY to ₹17,370 crore while total FMCG segment profit rose 10% to ₹6,009 crore. The company reported strong growth across categories including staples, biscuits, snacks, frozen snacks, noodles, dairy, premium personal wash, home care, and agarbatti.
For the full fiscal year FY26, revenue from operations was up 10% to ₹81,640 crore while profit from continuing operations stood at ₹20,286 crore, compared with ₹20,093 crore in the previous financial year. The company's board has recommended a final dividend of ₹8 per share for the financial year ended March 2026, with May 27 fixed as the record date for determining shareholders' eligibility. As reported by Mint, EBITDA for the year was up 4.9% to ₹25,208.22 crore. ITC shares closed up 0.16% on the National Stock Exchange while the benchmark Nifty50 remained flat during the trading session. The company declared an interim dividend of ₹6.50 per share on January 29, 2026, bringing the total dividend for FY26 to ₹14.50 per ordinary share.
The West Asia crisis has created additional challenges with input costs rising across businesses due to weaker rupee making imported edible oils more expensive and rising crude oil prices increasing packaging costs. According to Mint, revenue from the agri segment declined 16% YoY to ₹3,075 crore with segment profit falling sharply to ₹179 crore from ₹255 crore, a decline of around 30%. Looking ahead, ITC flagged risks from an El Niño year that may weaken monsoons and hurt consumer demand, while analysts remain cautious about potential inflationary pressures on household budgets. The company noted that prices of key input materials such as edible oil, soap noodles and packaging inputs surged sharply towards the end of the quarter amid the West Asia conflict, though these impacts were being mitigated through market interventions and supply chain measures.
