Synopsis:
ITC Q1 FY26 revenue rose 13.5 percent QoQ, but the net profit dipped 73 percent QoQ. FMCG and Agri segments showed solid year-on-year growth.
During Monday’s trading session, shares of the largest cigarette manufacturer and seller in India are in focus on the stock exchanges, after the company reported mixed financial results for Q1 FY26.
At 12:02 p.m., the shares of ITC Limited were trading in the green at Rs. 417.8 on BSE, up by around 0.3 percent, as against its previous closing price of Rs. 416.5, with a market cap of Rs. 5.23 lakh crores. The stock has delivered negative returns of around 14 percent in the last one year, but has gained by over 1 percent in the last one month.
What’s the News
According to the latest regulatory filings on the stock exchanges, ITC Limited announced the financial results for Q1 FY26 on Friday after market hours. For Q1 FY26, ITC reported consolidated revenue from operations of Rs. 23,129.3 crores, marking around a 13.5 percent QoQ growth compared to Rs. 20,376.4 crores in Q4 FY25, and a year-on-year increase of about 19.5 percent from Rs. 19,350 crores recorded in Q1 FY25.
The company’s net profit for the quarter stood at Rs. 5,343.4 crores, reflecting a decline of around 73 percent QoQ compared to Rs. 19,808 crores in Q4 FY25, largely due to exceptional gains of Rs. 15,145 crores from discontinued operations in Q4 FY25, but still reflecting a marginal rise of about 3 percent YoY from Rs. 5,177 crores in Q1 FY25. At the operating level, EBITDA stood at Rs. 6,816 crores during Q1 FY26, improving by 4 percent YoY from Rs. 6,545 crores.
Total segment revenue for the quarter stood at Rs. 28,377.3 crore. The FMCG segment contributed Rs. 15,354.3 crore, with the Cigarettes business accounting for Rs. 9,554 crore (33.6 percent) and Other FMCG segments contributing Rs. 5,800.4 crore (20.4 percent). Further, the Agri Business reported revenue of Rs. 9,724 crore (34.3 percent), while the Paperboards, Paper & Packaging segment and Others contributed Rs. 2,116.6 crore (7.5 percent) and Rs. 1,182.6 crore (4.2 percent), respectively.
The FMCG – Others segment witnessed a pickup in revenue growth of 8.6 percent YoY (excluding the Notebooks category), while the Cigarettes segment reported a 7.7 percent YoY increase in Net Segment Revenue.
The Agri Business segment grew by 39 percent YoY, primarily driven by favourable agri commodity trading conditions and higher Leaf Tobacco exports. Meanwhile, the Paperboards, Paper and Packaging segment remained under pressure due to increased low-priced supplies into global and Indian markets, elevated domestic wood costs, and softer realisations. Group companies delivered a strong performance, led by ITC Infotech India Limited, Surya Nepal Private Limited, and ITC Hotels Limited.
ITC Limited is a diversified conglomerate with businesses spanning Fast-Moving Consumer Goods, including cigarettes & cigars, foods, personal care products, education & stationery products, safety matches and agarbattis, along with involvement in paperboards, paper and packaging, and agri business.
Written by Shivani Singh
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