ITC Q1FY26 Results: FMCG Segment Became a Key Business Driver

On Aug 4, 2025, ITC share price is in focus, reaching a day high of ₹422.80 at 12:20 PM, after opening at ₹419.45 on BSE. The gain in ITC share price follows the release of Q1FY26 results. The company reported a net profit of ₹5,244 crore, reflecting a growth of 3% YoY from ₹5,091.59 crore in the same period last year.

ITC Q1FY26 Financial Performance

Operational revenue in Q1 FY26 rose to ₹23,129.35 crore, a 20% increase YoY from ₹19,350.08 crore, driven by strong performance in the cigarette, agri-business, and FMCG segments, including products like notebooks. Revenue also grew 14.63% sequentially, up from ₹20,176.41 crore in Q4 FY25.

On the profitability front, Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) margin came in at 3% YoY. The FMCG segment, a key growth driver, reported EBITDA margins of 9.4%, slightly lower than 11.3% in Q1 FY25, but an improvement over 8.9% in Q4 FY25.

Also Read: Swiggy Q1 FY26 Losses Deepen Despite Robust Revenue Growth Across Segments

Resilient Macroeconomic Environment

ITC said in an exchange filing, “The macroeconomic fundamentals of the Indian economy remain resilient despite global headwinds marked by geo-political tensions, evolving trade policy dynamics and heightened uncertainty & volatility in the operating environment. High frequency indicators for the quarter suggest mixed trends. Buoyancy in agriculture & service sector, moderating inflation and rural wage growth are some of the key positives; on the other hand, industrial growth, automobile sales, credit growth and electricity & fuel consumption remain subdued.

Rural demand continued to demonstrate resilience; expectations of a normal monsoon and kharif crop sowing trends augur well for the rural economy. Early signs of recovery in urban consumption demand were visible during the quarter. Lower inflation, reduction in interest rates & liquidity support by RBI, tax cuts announced in the recent Union Budget along with front loading of Government expenditure are expected to bolster the growth momentum going forward.”

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