ITC Q1 FY27 Results: Gross Revenue Rose 28% To ₹26,794 Crore, But PAT Dropped 27%

ITC reported a mixed performance for the first quarter of FY27. Standalone gross revenue increased 28.1% year-on-year to ₹26,794 crore from ₹20,922 crore. However, net revenue declined 14.4% to ₹16,812 crore, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell 27.9% to ₹4,514 crore.

Profit before tax dropped 27.3% to ₹4,759 crore and profit after tax declined 27.1% year-on-year to ₹3,579 crore. Despite the pressure on overall earnings, the FMCG-Others business delivered 12% revenue growth, or 16% excluding staples, while the Paperboards, Paper & Packaging business reported 9% revenue growth.

Segment profitability also improved in these businesses, with FMCG-Others profit before interest and taxes (PBIT) rising 21% and Paper segment PBIT increasing 38% during the quarter.

ITC Results: Quarterly Business Highlights

FMCG-Others revenue increased 12% year-on-year to ₹6,482 crore from ₹5,787 crore, while segment profit rose 21% to ₹479 crore. Excluding staples, FMCG revenue grew 16%, led by more than 20% growth in dairy, snacks, noodles and frozen snacks, alongside mid-teen growth in personal care products.

The cigarettes business remained under pressure following the unprecedented tax increase announced earlier this year. Cigarette gross revenue rose to ₹15,384 crore from ₹8,520 crore due to changes in reporting, but net revenue declined 25% as the company adopted staggered pricing actions to limit migration to illicit trade while protecting its consumer franchise. ITC said it implemented more than 30 portfolio interventions across price points to strengthen its market position.

The Agri Business reported segment revenue of ₹8,082 crore, down 17% year-on-year, mainly due to trade disruptions arising from the West Asia conflict and timing differences in the wheat business. However, the company said underlying revenue grew 9% after adjusting for these factors, supported by strong growth in value-added agri products such as spices, fruits and vegetables.

The Paperboards, Paper & Packaging business sustained its recovery, with revenue rising 9% to ₹2,307 crore from ₹2,116 crore. Segment profit increased 38% to ₹224 crore, supported by improved realisations, moderation in wood costs and robust demand for value-added paperboards, sustainable packaging products and exports.

On a consolidated basis, gross revenue increased 27.8% to ₹29,410 crore. Net revenue declined 11% to ₹18,955 crore, while EBITDA before exceptional items fell 24% to ₹5,181 crore. Profit after tax before exceptional items declined 23.2% to ₹4,103 crore. Including an exceptional gain of ₹406 crore related to the acquisition of control in Sproutlife Foods, consolidated profit after tax (PAT) stood at ₹4,509 crore, down 15.6% year-on-year.

Management Commentary And Stock Price

ITC said the quarter was impacted by uncertainty arising from the ongoing West Asia conflict, which led to sharp increases in crude oil-linked input costs and supply chain disruptions. Despite these challenges, the company said rural and urban consumption remained resilient. It highlighted robust growth in FMCG, continued recovery in the paper business and underlying strength in the agri segment after adjusting for external disruptions.

The company added that it continues to mitigate inflationary pressures through cost management initiatives, strategic inventory planning, commodity hedging and calibrated pricing actions while investing in future growth businesses.

The stock is likely to be in focus when the trading window opens next. At the close of the day on 31 July 2026, ITC's share price was ₹281.0 on the National Stock Exchange.

Also Read - Urban Company Q1 FY27 Results: Revenue Rises 44% To ₹528 Crore