ITC Limited (ITC)

Fast Moving Consumer Goods · Diversified FMCG · NSE · Updated 13 August 2026

By StockFin Research Team • AI-Assisted Analysis • Source: BSE/NSE Filings

₹276.15 ↓ 33.67% (1Y)

🎯 Key Takeaways

ITC Limited is navigating a strategic transition from traditional FMCG reliance toward high-growth non-cigarette businesses, particularly in agri-inputs, food services, and sustainability-driven ventures, while maintaining strong financial fundamentals. Despite macroeconomic headwinds affecting profitability, the company is leveraging its diversified portfolio and digital agriculture ecosystem to drive resilient top-line growth and long-term value creation.
Revenue grew 2.1% QoQ to ₹21,707 in Q3FY26.
⚠️ Macroeconomic headwinds including inflation, monsoon variability, and global conflicts are explicitly cited by management as pressuring EBITDA and PAT

Market Cap

₹3.88 L Cr

P/E Ratio

11.1

P/B Ratio

5.54

ROE

50.0%

ROCE

38.9%

Debt/Equity

0.00

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

ITC Limited is navigating a strategic transition from traditional FMCG reliance toward high-growth non-cigarette businesses, particularly in agri-inputs, food services, and sustainability-driven ventures, while maintaining strong financial fundamentals. Despite macroeconomic headwinds affecting profitability, the company is leveraging its diversified portfolio and digital agriculture ecosystem to drive resilient top-line growth and long-term value creation.

📰 What's Happening

In Q1 FY27, ITC reported 28% consolidated revenue growth YoY, driven by 12% FMCG growth (16% ex-Staples) and 9% paper segment expansion, alongside robust performance in the fresh food business scaled to 75 cloud kitchens across 5 cities with 90% GMV growth. However, consolidated EBITDA and PAT declined 28% and 27% YoY respectively due to macroeconomic pressures including West Asia conflict, monsoon deficit, and inflation. The Board approved unaudited Q1 FY26 results showing a 52% YoY revenue surge to ₹29,409.82 crores and a ₹405.88 crore exceptional gain boosting net profit to ₹3,578.82 crores and EPS to ₹3.51, with an unmodified limited review report confirming compliance. Management emphasized resilience of Indian economic fundamentals and plans to scale the fresh food business, while the 115th AGM highlighted leadership in sustainability (carbon-positive, water-positive) and expansion of Climate-Smart Agriculture to 40 lakh acres by 2030.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY24	Q1FY25	Q2FY25	Q3FY25	Q4FY25	Q1FY26	Q2FY26	Q3FY26
Revenue	19,446	20,030	22,282	20,350	20,376	23,129	21,256	21,707
Operating Profit	7,308	7,440	7,377	6,958	7,160	7,499	7,367	7,102
OPM %	34.1%	33.7%	30.4%	31.3%	32.0%	29.5%	31.5%	31.7%
Net Profit	5,191	5,177	5,054	5,013	19,808	5,343	5,187	5,018
EPS	₹4.10	₹4.08	₹3.99	₹3.95	₹15.77	₹4.19	₹4.09	₹3.94

Quarterly financials reveal a clear inflection: revenue peaked at ₹23,129 crores in Q1 FY26 before declining to ₹21,707 crores in Q3 FY26, while operating profit margins stabilized around 31-32% despite pressure on net profit, which dropped from ₹5,343 crores (Q1 FY26) to ₹5,018 crores (Q3 FY26), and EPS from ₹4.19 to ₹3.94. Notably, Q4 FY25 showed an outlier ₹19,808 crores net profit due to a ₹405.88 crore exceptional gain, distorting year-on-year comparisons. The underlying trend indicates that while revenue growth remains strong (10.7% CAGR), profitability is being compressed by external macro factors, as explicitly flagged by management, rather than operational inefficiency.

🔮 Management Outlook & What's Next

Management consistently underscores confidence in India's economic resilience and the long-term potential of non-cigarette businesses, with Chairman Sanjiv Puri at the 115th AGM highlighting 'Responsible Competitiveness' and the company's role in 'Partnering India in its Defining Decade'. Explicit forward-looking statements include scaling Climate-Smart Agriculture to 40 lakh acres by 2030, expanding Next-Generation Agriculture to enhance farmer incomes, and continuing leadership in sustainability metrics, including carbon-positive and water-positive operations. The expansion of the fresh food business to 75 cloud kitchens with 90% GMV growth and the focus on digital platforms like ITCMAARS for 2.6 million farmers reflect a strategic pivot toward scalable, sustainable growth engines beyond traditional FMCG.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

Item	2024-2025	2024-2025	2024-2025	2024-2025	2025-2026
Equity Capital	1,248	1,251	1,251	1,251	1,253
Reserves	—	74,015	—	68,779	69,819
Borrowings	—	27	—	91	157
Total Liabilities	13,843	18,279	12,307	17,693	19,208
Fixed Assets	—	24,814	—	17,429	17,279
Investments	—	27,848	—	30,008	27,520
Total Assets	98,393	94,071	99,186	88,091	90,803

The balance sheet shows a strong equity base of ₹1,253 crores and substantial reserves of ₹69,819 crores as of 2025-26, with borrowings remaining low at ₹157 crores, indicating a conservative capital structure and minimal financial risk. Total assets of ₹90,803 crores reflect steady growth from ₹88,091 crores in the prior year, supporting expansion initiatives without significant leverage. This financial resilience enables ITC to fund strategic investments in agri-tech, sustainability, and new business verticals while maintaining ample capacity for shareholder returns and economic downturns.

💰 Cash Flow Statement (₹ Cr)

Item	2020-2021	2020-2021
Operating	+4,408	+12,527
Investing	+6,537	+5,683
Financing	-11,309	-18,634
Net Cash Flow	—	—

⚖️ Peer Comparison — Diversified FMCG

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Hindustan Unilever Limited	5.34 L Cr	36.8	27.4%	29.4%	0.00
ITC Limited	3.88 L Cr	11.1	38.9%	50.0%	0.00
Hindustan Foods Limited	6,215	58.9	—	—	—
Godavari Biorefineries Limited	1,528	67.7	—	—	—
Rana Sugars Limited	200	5.6	—	—	—

🔗 Peer Stock Analyses

HINDUNILVR HNDFDS GODAVARIB RANASUG

⚠️ Risk Factors

1. Macroeconomic headwinds including inflation, monsoon variability, and global conflicts are explicitly cited by management as pressuring EBITDA and PAT despite revenue growth, directly impacting near-term profitability. 2. The sustainability ESG score declined slightly to 67 (Strong) from FY24-25, signaling evolving shareholder expectations that may require enhanced transparency or performance to maintain leadership perception. 3. The sharp decline in 1Y return (-33.67%) relative to sector peers suggests market sensitivity to external shocks, which could persist if macro conditions deteriorate further without offsetting operational recovery.

📋 Recent Filings

🧠 Analyst's Read

ITC is executing a deliberate strategic shift toward sustainable, high-growth non-traditional FMCG and agri-tech businesses, supported by strong financials, low leverage, and consistent shareholder returns, but near-term profitability faces pressure from macro factors beyond its control. Investors should monitor quarterly margin trends and management's ability to insulate core growth drivers from external volatility, particularly as the fresh food and Climate-Smart Agriculture initiatives scale.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-08-13.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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