ITC Q1 FY27 profit falls 16% as cigarette, agri margins drag earnings
Synopsis
ITC's Q1 FY27 earnings tell a tale of two businesses: revenue jumped 27.6% but profit cratered 16.2%, with the cigarette segment's profit before tax plunging 35% even as its gross revenue nearly doubled. The non-cigarette FMCG arm grew 21% in profit — but it is still too small to offset the core drag. The margin story is the real alert here.
Key Takeaways
ITC Limited posted a consolidated net profit of ₹4,394.13 crore in Q1 FY27 , down 16.2 per cent year-on-year.
Consolidated revenue from operations rose 27.6 per cent YoY to ₹29,523.30 crore .
Consolidated EBITDA fell 24 per cent YoY to ₹5,181 crore .
Cigarette segment profit before tax dropped 35 per cent to ₹3,341.23 crore despite gross revenue surging 80.6 per cent .
FMCG-Others segment profit before tax rose 21 per cent to ₹478.61 crore , a rare bright spot.
Standalone EBITDA margin contracted 500 basis points to 26.7 per cent on a standalone basis.
ITC Limited reported a 16.2 per cent year-on-year decline in consolidated net profit for Q1 FY27 (quarter ended 30 June 2025), as margin pressure in its cigarette and agri businesses overshadowed strong top-line growth and a resilient non-cigarette FMCG portfolio. The FMCG conglomerate posted a consolidated net profit of ₹4,394.13 crore, down from ₹5,244.20 crore in Q1 FY26, according to its stock exchange filing.
Headline Numbers at a Glance
On a sequential basis, profit fell a steeper 18.4 per cent from ₹5,387.97 crore recorded in the March 2025 quarter. Revenue from operations, however, surged 27.6 per cent year-on-year to ₹29,523.30 crore, compared with ₹23,129.35 crore a year earlier. Quarter-on-quarter, revenue climbed 23.9 per cent from ₹23,821.48 crore. Consolidated gross revenue also rose 27.8 per cent year-on-year to ₹29,410 crore.
At the operating level, EBITDA contracted 24 per cent year-on-year to ₹5,181 crore, reflecting the twin drag from cigarettes and agri even as the overall revenue base expanded sharply.
Cigarette Business: Revenue Surge, Profit Slump
ITC's cigarette segment delivered a mixed picture. Gross revenue from the segment surged 80.6 per cent year-on-year to ₹15,383.55 crore, yet net revenue declined 25 per cent — a divergence that points to the outsized role of excise and regulatory pass-throughs in gross figures. Profit before tax from the cigarette business fell 35 per cent to ₹3,341.23 crore, according to the regulatory filing. This is the sharpest quarterly profit drop the segment has recorded in recent memory, and it remains the single largest earnings contributor to the group, making the compression especially consequential.
Non-Cigarette FMCG Holds the Line
ITC's FMCG-Others segment was a clear bright spot. Segment revenue grew 12 per cent year-on-year to ₹6,481.95 crore; excluding staples, growth accelerated to 16 per cent. Profit before tax from the segment rose 21 per cent to ₹478.61 crore, supported by broad-based demand across branded food, personal care, and stationery categories. Notably, the non-cigarette FMCG business has now sustained double-digit revenue growth for several consecutive quarters, underscoring ITC's ongoing diversification push.
Standalone Performance Reflects Deeper Stress
On a standalone basis — which more directly captures the core cigarette and agri operations — the picture was sharper. Standalone net profit declined 27.1 per cent to ₹3,579 crore, while revenue fell 14.4 per cent year-on-year to ₹16,812 crore. Standalone EBITDA dropped 27.9 per cent to ₹4,514 crore, with the EBITDA margin contracting by 500 basis points to 26.7 per cent. The standalone margin contraction is among the steepest in recent quarters and signals that cost pressures or volume headwinds in core segments were not offset by pricing.
What to Watch Next
The agri business — which was cited alongside cigarettes as a drag — faces continued uncertainty from commodity price volatility and export demand conditions. Analysts will watch whether the cigarette segment's net revenue recovers in Q2 FY27, and whether the non-cigarette FMCG margin trajectory can compensate for core-segment softness. ITC's diversification into hotels, paperboards, and packaged foods remains a medium-term lever, but the near-term earnings story hinges on cigarette volume and agri margin recovery.
Point of View
But at ₹478 crore against cigarettes' ₹3,341 crore, it remains a rounding error in earnings terms. Until that gap narrows materially, every cigarette headwind will produce outsized damage to the consolidated bottom line — and this quarter is a textbook illustration of exactly that risk.
NationPress
31 Jul 2026
Frequently Asked Questions
What were ITC's Q1 FY27 consolidated profit and revenue figures?
ITC reported a consolidated net profit of ₹4,394.13 crore in Q1 FY27 (April–June 2025), down 16.2 per cent year-on-year from ₹5,244.20 crore. Revenue from operations rose 27.6 per cent YoY to ₹29,523.30 crore.
Why did ITC's profit fall despite strong revenue growth?
Margin weakness in the cigarette and agri businesses drove the profit decline. The cigarette segment's profit before tax fell 35 per cent to ₹3,341.23 crore, and standalone EBITDA margin contracted 500 basis points to 26.7 per cent, offsetting the sharp revenue expansion.
How did ITC's non-cigarette FMCG business perform in Q1 FY27?
The FMCG-Others segment was a bright spot, with revenue rising 12 per cent YoY to ₹6,481.95 crore and profit before tax growing 21 per cent to ₹478.61 crore, supported by strong demand across branded categories.
What was ITC's standalone performance in Q1 FY27?
On a standalone basis, ITC's net profit fell 27.1 per cent to ₹3,579 crore and revenue declined 14.4 per cent YoY to ₹16,812 crore. Standalone EBITDA dropped 27.9 per cent to ₹4,514 crore.
What is the outlook for ITC in Q2 FY27?
Analysts will closely track whether the cigarette segment's net revenue recovers and whether agri business margins stabilise. The non-cigarette FMCG segment's continued growth trajectory will also be a key monitorable as ITC pursues longer-term diversification.
