ITC revenue rises 28% as profit falls 27%; shares gain on FMCG and cigarette optimism
ITC reported standalone revenue of Rs 26,943 crore, up 28% year-on-year, while net profit fell 27% to Rs 3,579 crore and EBITDA margin narrowed to 16.75%. The stock rose in midday trade as broker commentary pointed to resilient cigarette demand and FMCG growth.
What happened
ITC shares rose after Q1 results despite a profit decline, supported by broker optimism on cigarette demand and FMCG growth. TVS posted strong July sales,
Key facts
- ITC standalone net profit fell 27% YoY to Rs 3,579 crore
- ITC revenue rose 28% to Rs 26,943 crore
- ITC EBITDA fell 28% to Rs 4,514 crore; margin was 16.75%
- TVS Motor July sales rose 38% YoY to 629,675 units
- TVS EV sales rose 158% to 60,934 units
- Redington reported record June-quarter revenue and profit
- Urban Company revenue rose 44% YoY to Rs 528.34 crore
- Urban Company net loss narrowed to Rs 92.12 crore
- Urban Company InstaHelp delivered more than 100,000 orders in one day
Why this matters
ITC’s results reinforce the strategic value of expanding higher-growth FMCG platforms while using its cigarette cash flows to support scale-building investments and partnerships.
What to watch
- Cigarette volume growth, realization growth and commentary on tax or regulatory risk.
- FMCG revenue growth, segment EBITDA loss/profit trajectory, and the contribution from premium and digital-first brands.
- Consolidated versus standalone profit reconciliation and any exceptional, tax or prior-period effects affecting comparability.
- Quarterly EBITDA margin movement, particularly in agri, paperboards and FMCG.
- Prices of key inputs including leaf tobacco, edible oils, packaging materials, wheat, pulp and energy.
- Management guidance on demand conditions, rural recovery, capex, hotel expansion and capital-return policy.
- Management is likely to emphasize cigarette volume-led growth, premiumization and continued FMCG category expansion to frame the profit fall as temporary rather than structural.
- Brokerages may revise FY earnings models around segment margins, commodity assumptions and the pace of FMCG break-even improvement.
- ITC may intensify premium product launches, distribution expansion and targeted advertising in FMCG to preserve growth momentum while protecting gross margins.
- Investors may increasingly separate recurring operating performance from any base effects, exceptional items or segment-level volatility behind the year-on-year profit decline.