ITC Q1 profit falls 15.6% as FMCG-Others revenue rises 12%

ITC’s Q1 FY27 revenue rose 27.6% to ₹29,523.30 crore, but reported net profit fell 15.6% to ₹4,508.79 crore amid cigarette tax pressure and weaker agri-business performance. FMCG-Others revenue grew 12%, while results included a ₹405.88 crore Sproutlife stake-revaluation gain.

— Source publishedMon, 3 Aug, 2026, 10:25 IST·First seen Mon, 3 Aug, 2026, 10:33 IST·Source Mint · Markets

What happened

ITC reported weaker Q1 FY27 profitability despite 27.6% revenue growth, as higher cigarette taxes and a weaker agri business weighed on results. FMCG-Others

Key facts

  • Q1 FY27 consolidated revenue: ₹29,523.30 crore, up 27.6% YoY
  • Q1 FY27 net profit: ₹4,508.79 crore, down 15.6% YoY
  • Net profit excluding exceptional items: ₹4,103 crore, down 23.2% YoY
  • Consolidated EBITDA: down 24% YoY
  • FMCG-Others revenue: up 12% YoY
  • Cigarettes revenue: down 25% YoY
  • Agri-business revenue: ₹8,082.06 crore, down 16.55% YoY
  • One-time Sproutlife Foods stake-revaluation gain: ₹405.88 crore
  • ITC share price gain: up to 3.81%

Why this matters

The Sproutlife stake-revaluation gain highlights the strategic value of ITC’s minority investments, while slower profit growth raises the bar for future FMCG-led acquisitions or partnerships.

What to watch

  • Cigarette volume trend after tax changes, including evidence of downtrading or illicit-trade expansion.
  • FMCG-Others revenue growth, EBITDA-margin progression and market-share movement.
  • Rural consumption indicators, monsoon distribution and food-inflation trends.
  • Agri-business revenue and margin recovery, especially from leaf tobacco and commodity trading.
  • Input-cost movement in edible oils, wheat, paperboard, packaging and tobacco leaf.
  • Management commentary on whether the Sproutlife revaluation gain is non-recurring and on the underlying profit trajectory.
  • Implement calibrated cigarette price increases while protecting premium-segment volumes.
  • Prioritize FMCG-Others categories with higher gross margins, repeat purchase and rural scalability.
  • Increase advertising and distribution investment behind brands with proven market-share gains rather than broad-based spending.
  • Use supply-chain efficiencies and commodity hedging to protect FMCG margins amid input-cost volatility.
  • Maintain clear disclosure separating recurring operating performance from one-off revaluation gains.