ITC Ltd [NSE: ITC], a leading player in India’s FMCG sector, released its Q1 FY26 results on Friday, 1st August 2025. The company delivered a stable performance with modest profit growth amid a challenging environment. Investors tracking the ITC share price saw muted stock reaction as the results aligned with street expectations. Being a key player among FMCG stocks, ITC’s performance offers insights into consumption trends across segments.
For Q1 FY26, ITC reported a 3% year-on-year rise in consolidated net profit, reaching ₹5,244 crore compared to ₹5,092 crore in the same period last year. The company’s revenue from operations grew 19.5% YoY to ₹23,129 crore, up from ₹19,350 crore in Q1 FY25.
Key Financial Results for ITC Q1 FY26:
| Particulars | Q1 FY26 (₹ Cr) | Q4 FY25 (₹ Cr) | Q1 FY25 (₹ Cr) | YoY Growth (%) | QoQ Growth (%) |
| Revenue from Operations (₹ Cr) | 23,129.4 | 20,376.4 | 19,350.1 | 19.5 | 13.5 |
| Net Profit (₹ Cr) | 5,244.2 | 19,727.4 | 5,091.6 | 3 | -73.4 |
| Total Income (₹ Cr) | 23,811.6 | 21,016.6 | 20,032.8 | 18.9 | 13.3 |
| EPS Basic (₹) | 4.2 | 4 | 4 | 4.5 | 3.5 |
| EPS Diluted (₹) | 4.2 | 4 | 4 | 4.5 | 3.2 |
Important Updates from ITC’s Latest Financial Results:
Stable Profitability amid Headwinds
ITC reported a 3% YoY increase in consolidated net profit to ₹5,244 crore in Q1 FY26. The company’s resilience in navigating rising input costs and competitive intensity helped protect margins.
Strong Revenue Growth
Revenue from operations surged to ₹23,129 crore in Q1 FY26, reflecting a 19.5% YoY increase, driven by robust performance across Cigarettes, Agri Business, and FMCG segments.
Segment Performance Breakdown
- FMCG (Ex-Cigarettes): Revenue stood at ₹15,354 crore, up from ₹14,341 crore in Q1 FY25 and ₹14,732 crore in Q4 FY25. Growth was driven by staples, biscuits, dairy, personal wash, and incense sticks.
- Cigarettes: Revenue rose to ₹9,554 crore, marking a YoY increase from ₹8,842 crore.
- Agri Business: Segment revenue grew sharply to ₹9,724 crore from ₹6,998 crore in Q1 FY25 and ₹3,695 crore in Q4 FY25.
- Paperboards, Paper & Packaging: Revenue grew marginally YoY to ₹2,117 crore compared to ₹1,977 crore last year.
Operational Performance
ITC’s expenses rose by 27% YoY to ₹16,752 crore in Q1 FY26, due to increased raw material and stock-in-trade purchases, employee benefits, and finance costs. EBITDA growth remained modest at 3% YoY.
Market Conditions & Challenges
The quarter saw challenges in the notebooks segment due to deflationary pricing pressures and competition from regional players. Unseasonal rains also impacted the beverages segment. Despite these, the cigarette business maintained strong momentum with premium offerings showing sustained growth.
Outlook
ITC highlighted resilience across its core verticals and expects further improvements in the margin profile with easing commodity costs and better operating leverage in the upcoming quarters.
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