ITC Revenue Expands 17% Amid Impact of Increased Cigarette Tax and Growth in Consumer Brands

ITC Ltd Posts Strong March-Quarter Revenue Growth Amid Rising Geopolitical Risks

Mumbai: ITC Ltd, the Kolkata-headquartered conglomerate with a diverse portfolio spanning cigarettes to consumer goods, has reported a 17% year-on-year (y-o-y) rise in revenue from operations to ₹23,821 crore in the March quarter. The company's profit from continuing operations also saw a 6% increase to ₹5,469.74 crore.

The revenue growth was driven by a nearly 30% rise in cigarette sales and 15% growth in the FMCG-Others business. However, even as cigarette profits grew 7% to ₹5,797.30 crore, compared to 4.7% in the year-ago period, the FMCG business saw a more than 1.5x rise in profits to ₹525.78 crore in Q4 of FY26.

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The company attributed the low profit growth in cigarettes to higher taxes imposed this February. ITC warned that higher cigarette taxes could boost illicit trade and hurt the broader tobacco value chain, including farmers, retailers, and MSMEs. To combat this, the company is introducing "staggered pricing action" and relying on its portfolio of well-known brands.

ITC's FMCG growth was driven by strong traction in brands such as Aashirvaad, Sunfeast, Savlon, and Mangaldeep. The company's newly acquired 'new age' brands, including staples brand 24 Mantra, meat and ready-to-eat snacks brand Prasuma, and baby care brand Mother Sparsh, reported a 60% y-o-y jump in revenues for FY26, with an annual run rate of over ₹1,350 crore.

For the full fiscal year FY26, consolidated revenue from operations was up 10.1% to ₹89,913.33 crore, while profits after tax from continuing operations were up just under 5% to ₹21,018.15 crore. Earnings before interest, taxes, depreciation, and amortization (Ebitda) for the year was up 4.9% to ₹25,208.22 crore.

Shares of ITC Ltd closed up 0.16% on the National Stock Exchange, while the benchmark Nifty50 closed flat in the day's trade. The company also highlighted the impact of the West Asia crisis, which has pushed up input costs across businesses. The disruptions also weighed on ITC's agri business, with revenue falling 14.2% y-o-y to ₹3,166.65 crore, while profits declined more than 20% to ₹200.11 crore.

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