What was filed
ITC's Board approved the unaudited standalone and consolidated results for the quarter ended 30 June 2026 at its meeting on 31 July 2026, together with segment data. The statutory auditors, S R B C & CO LLP, issued an unmodified limited-review report.
The statement, filed under Regulation 33 of the SEBI LODR regulations, also records two corporate-structure changes: Sproutlife Foods Private Limited became a subsidiary with effect from 1 April 2026, and ITC's shareholding in associate Mother Sparsh Baby Care reached 49.32% on a fully diluted basis following a purchase on 19 May 2026.
The excise distortion
The company flags a caveat for anyone comparing this quarter with earlier periods. After the GST Compensation Cess expired, the Government of India raised GST and Central Excise duty on cigarettes from 1 February 2026. Under the applicable accounting standards, GST is excluded from gross revenue but excise duty is not — so both reported gross revenue and the excise-duty line now carry the impact of the sharp increase. The filing states the figures for the quarters ended 30 June 2026 and 31 March 2026 are "not strictly comparable with those of the previous periods."
This is why reported revenue rose while profit moved the other way: much of the higher gross-revenue line is offset by a far larger excise charge, and the cigarette segment result came in below the year-earlier quarter.
Sproutlife gain and structural changes
On the consolidated side, ITC recognised a re-measurement gain as an exceptional item, arising from re-measuring its existing interest in Sproutlife at fair value under Ind AS 103 when Sproutlife became a subsidiary from 1 April 2026. The company notes that consolidated results and the FMCG-Others segment now include Sproutlife and are therefore not comparable with previous periods — a factor that lifts the consolidated profit-before-tax figure relative to the standalone result.