ITC posts 24% revenue growth in Q1, profit declines 17.5%

Despite resilient consumer demand, ITC cautioned that rising input costs, West Asia tensions and emerging El Niño conditions could impact growth

by e4m Staff
Published: Jul 31, 2026 7:16 PM | 2 min read

ITC Ltd reported a 24% year-on-year increase in consolidated revenue from operations, reaching Rs 29,523.30 crore for Q1 FY27, despite a 17.5% decline in net profit to Rs 4,508.79 crore.
The FMCG segment saw a 12% revenue growth, with significant increases in dairy, snacks, noodles, and frozen snacks, while the cigarette business grew 38.8% to Rs 16,596.67 crore.
The company faced challenges in its atta business due to heatwaves, LPG shortages, and wheat price fluctuations, amid broader economic uncertainties linked to geopolitical tensions and inflationary pressures.
ITC's digital-first and organic brands achieved strong growth, with annual recurring revenue around Rs 1,500 crore, supported by advancements in e-commerce and other new-age channels.

FMCG major ITC Ltd posted a 24% year-on-year rise in consolidated revenue from operations at Rs 29,523.30 crore for the first quarter of FY27, up from Rs 23,821.48 crore in the corresponding period last year.

Despite the strong topline growth, the company's net profit fell 17.5% year-on-year to Rs 4,508.79 crore, compared with Rs 5,469.74 crore in Q1 FY26. Total income for the quarter stood at Rs 30,179.01 crore.

Its FMCG business also registered healthy growth, with segment revenue increasing 12% over the year-ago period. Categories such as dairy, snacks, noodles and frozen snacks grew by more than 20%, while the personal care portfolio delivered growth in the mid-teens.

The cigarette business remained ITC's biggest growth driver during the quarter, with revenue from the segment climbing 38.8% year-on-year to Rs 16,596.67 crore. The company noted that its atta business encountered temporary challenges during the quarter due to heatwaves, an LPG shortage and benign wheat prices.

Commenting on the broader business environment, ITC said the quarter was marked by uncertainty as the conflict in West Asia led to sharp increases and volatility in crude oil and crude-linked commodity prices, alongside trade and supply-chain disruptions.

Input cost inflation remained elevated, particularly across fuel, edible oil, soap noodles and packaging materials. However, the company said strategic inventory planning and commodity hedging helped soften the impact of these cost pressures.

ITC added that it continues to address rising costs through focused cost-management measures, net revenue management initiatives and price-volume rebalancing. The company said consumer demand remained resilient across both rural and urban markets during the quarter, though imported inflation continues to pose a near-term risk. It also highlighted the monsoon deficit and lower Kharif sowing compared with the same period last year as key factors to monitor.

According to the company, prolonged geopolitical tensions in West Asia, together with emerging El Niño conditions that could weaken monsoons and intensify heatwaves, may have implications for economic growth, inflation and the current account.

Meanwhile, ITC's portfolio of digital-first and organic brands, including Yoga Bar, 24 Mantra, Prasuma, Meatigo and Mother Sparsh, continued its strong growth momentum, with annual recurring revenue (ARR) reaching around Rs 1,500 crore.

The company also reported robust growth across new-age channels such as e-commerce, quick commerce and modern trade, supported by channel-specific joint business plans, strategic collaborations, format-led assortments and category-focused sell-out strategies.