ITC Q1 Revenue Rises 24%, Profit Falls 17.5% Amid Cost Pressures

ITC reported 24% revenue growth in Q1 FY27, while profit fell 17.5% as higher input costs weighed on margins.

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Aug 1, 2026 - 09:39
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ITC Q1 Revenue Rises 24%, Profit Falls 17.5% Amid Cost Pressures

FMCG giant ITC Ltd on Tuesday reported a 24 per cent year-on-year increase in consolidated revenue from operations to ₹29,523.30 crore in the first quarter of FY27, buoyed by robust growth in its cigarette and FMCG businesses. But higher input costs hurt profitability and consolidated net profit fell 17.5% year-on-year.

The company’s consolidated profit for the quarter stood at ₹4,508.79 crore against ₹5,469.74 crore in the same period last year. The company’s total income for the quarter grew to ₹30,179.01 crore.

The cigarette business continued to be the largest growth engine for ITC in the quarter with revenue growing 38.8 % year-on-year to ₹16,596.67 crore aided by steady demand and strategic pricing.

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Cost Pressures:

The company’s FMCG business also performed well, with segment revenue up 12% year-on-year. Categories like dairy, snacks, noodles and frozen snacks saw over 20% growth. The personal care portfolio grew in the mid-teens.

"Heat waves, LPG shortages and benign wheat prices impacted category performance during the quarter and were temporary headwinds to its atta business, ITC said.

The company said the operating environment remained challenging as geopolitical tensions in West Asia led to sharp volatility in crude oil and crude-linked product prices while disrupting global trade and supply chains.

Input cost inflation was particularly pronounced across fuel, edible oil, soap noodles and packaging materials. However, strategic inventory management and commodity hedging helped cushion some of the impact.

To protect margins, ITC said it continued to focus on cost management initiatives, net revenue management and price-volume rebalancing across its businesses.

Despite macroeconomic uncertainties, the company said consumption demand remained resilient across both rural and urban markets during the quarter. However, it cautioned that imported inflation, a monsoon deficit and lower Kharif sowing compared with the previous year remain key risks.

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Future Strategy:

The company also warned that prolonged geopolitical tensions in West Asia, combined with the emergence of El Niño conditions that could weaken monsoon rains and intensify heatwaves, may pose risks to economic growth, inflation and India's current account.

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

The company also reported robust growth across e-commerce, quick commerce and modern trade, driven by channel-specific partnerships, format-based assortments and category-focused sell-out strategies.

ITC said it remains focused on driving growth through innovation, premiumisation and digital channels while managing input cost volatility and macroeconomic uncertainties in the quarters ahead.

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