What ITC filed
ITC filed its media statement and investor presentation for the quarter ended 30 June 2026 (Q1 FY27), following unaudited results approved by its board on 31 July 2026. Running through the disclosure is the company's response to what it repeatedly describes as an "unprecedented increase in tax" on cigarettes.
The filing highlights a paradox in the numbers: gross revenue rose sharply while net revenue and profit fell. Cigarette taxes flow through gross revenue but are stripped out to reach net revenue, so the increase inflates the top of the statement while compressing the figures below it. ITC noted that excluding its Agri Business, standalone net revenue was down 6% year-on-year.
The cigarette response and the rest of the portfolio
ITC described its cigarette response as "strategic and calibrated," citing over 30 interventions to re-architect its portfolio and "staggered and agile" pricing actions intended to limit migration of volumes to illicit trade while protecting its consumer franchise. The company said its strategy, execution and outcomes were "tracking well in line with internal plans." Cigarette segment net revenue and results both fell year-on-year, per the filing.
Outside cigarettes, ITC reported growth across its divisions. FMCG-Others was led by dairy, snacks, noodles, frozen snacks and personal care, with the company noting its digital-first and organic portfolio — Yogabar, Mother Sparsh, Prasuma and 24 Mantra — reaching an annual revenue run rate of about ₹1,500 crore. The Paperboards, Paper & Packaging segment sustained its recovery, while the Agri Business was held back by West Asia conflict-led trade disruptions and a high base, with underlying revenue up 9% after adjustments. The newer Fresh Food Business grew GMV 90% year-on-year across 75 cloud kitchens in five cities.
The operating backdrop ITC cited
ITC framed the quarter against "heightened uncertainty" from the ongoing conflict in West Asia, which it said triggered sharp volatility in crude oil and crude-linked prices along with trade and supply-chain disruptions. The company flagged imported inflation as a near-term watch-out and pointed to a monsoon deficit and lower Kharif sowing versus the prior year as monitorables, alongside possible El Niño conditions.
Input cost increases in fuel, edible oil, soap noodles and packaging inputs were, per the filing, cushioned by strategic inventory covers and commodity hedges, with FMCG-Others EBITDA margin still expanding (ex-Sresta).