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ITC Limited (ITC)

Fast Moving Consumer Goods · Diversified FMCG · NSE · Updated 5 July 2026

₹289.95 ↓ 29.72% (1Y)

🎯 Key Takeaways

ITC Limited is navigating a strategic transition from a traditionally tobacco-dependent FMCG player toward a diversified, sustainability-driven enterprise with growing momentum in packaged foods, spices, and digital commerce. Despite a challenging macro environment and sector-specific headwinds, the company demonstrated revenue resilience and operational discipline in FY26, supported by strong consumer franchise expansion and strategic acquisitions.
Revenue grew 2.1% QoQ to ₹21,707 in Q3FY26.
⚠️ 1) Over-reliance on tobacco-derived revenues creates vulnerability to regulatory and tax increases, despite diversification efforts. 2) Agri Business

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%

✨ Ask AI About ITC 📊 Interactive Charts

📖 The Story

ITC Limited is navigating a strategic transition from a traditionally tobacco-dependent FMCG player toward a diversified, sustainability-driven enterprise with growing momentum in packaged foods, spices, and digital commerce. Despite a challenging macro environment and sector-specific headwinds, the company demonstrated revenue resilience and operational discipline in FY26, supported by strong consumer franchise expansion and strategic acquisitions. However, its 1Y return of -29.72% reflects market skepticism amid regulatory pressures on tobacco and slower growth in legacy segments.

📰 What's Happening

In the last three quarters, ITC has focused on scaling high-growth FMCG segments and advancing its sustainability agenda. The company reported FY26 consolidated revenue of ₹89,258 crores, up 17.1% YoY, driven by 15% growth in FMCG Others and strategic acquisitions like Sresta Natural Bioproducts, which added ₹1,350 crore ARR. Management highlighted progress in digital sourcing, AI-powered price discovery, and expansion of the nicotine derivative facility and organic spices exports. The 115th AGM scheduled for 23 July 2026 will review compliance with the 'ITC Next' strategy, including net-zero by 2050 targets and afforestation of 1.48 million acres.

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 revenue trends show sequential softness in Q1FY26 (₹23,129 crores) followed by stabilization in Q2FY26 (₹21,256 crores) and Q3FY26 (₹21,707 crores), indicating stabilization after a peak in Q1. While operating margins remain steady around 31-32%, net profit declined 3.5% YoY in Q4FY25 to ₹20,286.42 crores due to exceptional charges of ₹291.70 crores from labor law and insurance settlements. Despite this, PAT remains robust, supported by scale and cost efficiency, though growth has plateaued in recent quarters.

🔮 Management Outlook & What's Next

Management expressed confidence in long-term growth through digital transformation, climate-smart agriculture, and expansion of cloud kitchen operations to 70 locations. They emphasized scaling the nicotine derivative business and increasing exports of leaf tobacco and organic spices, while continuing to invest in sustainability infrastructure, including AWS Platinum-certified units and renewable energy adoption (51% usage). The company also plans to deploy AI and digital sourcing tools further to enhance supply chain resilience and pricing agility amid macroeconomic headwinds.

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 reflects a strong equity base of ₹1,253 crores and substantial reserves of ₹69,819 crores, underpinning financial stability. Borrowings remain low at ₹157 crores, indicating minimal leverage and a conservative capital structure. Total assets have stabilized around ₹90,803 crores, suggesting disciplined asset management. The company is not pursuing aggressive M&A but is focused on organic growth and strategic reinvestment in high-margin segments, supported by strong internal cash generation.

💰 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) Over-reliance on tobacco-derived revenues creates vulnerability to regulatory and tax increases, despite diversification efforts. 2) Agri Business decline of 29.6% YoY in FY26 highlights exposure to export volatility and supply chain disruptions. 3) Exceptional charges from labor law and insurance settlements may recur, pressuring near-term profitability. 4) Sluggish net profit growth over multiple quarters raises concerns about margin sustainability amid rising input costs and competitive pressures in FMCG.

📋 Recent Filings

🧠 Analyst's Read

ITC is executing a deliberate transformation toward higher-growth, sustainable FMCG and agri-tech businesses, supported by strong cash flows and governance discipline. Investors should monitor execution of digital initiatives, margin resilience in consumer segments, and progress on sustainability targets, particularly as regulatory and tax risks to tobacco remain elevated.

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

✨ Deep Dive with AI on ITC

Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-05.

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