ITC Q1 results: Net profit flat at Rs 4,912 crore, misses estimates

ITC Q1 results: Net profit flat at Rs 4,912 crore, misses estimates

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26 Aug, 2025 12:21

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ITC Ltd on August 1 reported its standalone net profit was flat at Rs 4,912 crore for the quarter ended June 30, 2025, as elevated input costs for edible oil, wheat,
maida, cocoa, continue to pressure margins. The company reported net profit of Rs Rs 4,917 crore in the same quarter last year.

The June quarter results of ITC Ltd misses estimates as a Moneycontrol poll of eight brokerages pegged its net profit at Rs 5,000 crore in Q1FY26.

EBITDA was up 3 per cent YOY at Rs 6,261 crore, including the impact from the subdued paper business. On a consolidated basis, net profit rose 3 per cent to Rs 5,343.4 crore.

"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,"the company said in a statement on August 1.

However, the conglomerate's revenue rose 20 per cent  to Rs 21,059 crore in Q1FY26 as against Rs 17,593 crore a year ago, driven by strong sales from cigarettes, agri business and fast moving consumer goods (FMCG) businesses.

The FMCG-to-cigarettes conglomerate said it expects lower inflation, reduction in interest rates & liquidity support by RBI and  tax cuts along with front loading of government expenditure to "bolster the growth momentum going forward".

On August 1, ITC Ltd shares on BSE closed 1.1% higher at Rs 416.6 apiece.

Segment results 

Standalone cigarette business' revenue rose 7.7 per cent to Rs 8,520 crore in the quarter, while profit was up 3.7 per cent at Rs 5, 145 crore. ITC flagged margin impact from the consumption of high-cost leaf inventory which it partly mitigated through cost management initiatives and improved product mix.

Meanwhile, FMCG business, which owns brands like Aashirvaad and Sunfeast, reported revenue of Rs 5,777 crore, up 5.2 per cent YOY, on a standalone basis.  Notebooks industry continues to operate under deflationary conditions on account of low-priced paper imports and opportunistic play by local/regional players, also  unseasonal rains during the quarter impacted beverages sales, the company said. The segment profit was down 16 per cent at Rs 398 crore in the quarter impacted by high commodity costs.

Revenue from agri business rose 38.9 per cent at Rs 9, 685 crore and profit rose 21.0 per cent YOY at Rs 434 crore.

Revenue from Paperboards, Paper & Packaging business rose 7 per cent at Rs 2, 116 crore but the segment posted a 37.8 per cent decline in profit asLow-priced supplies into global markets including India, subdued realisations and elevated wood prices continue to impact Industry performance, the company said in an investor presentation.