Top Highlights from ITC’s Q1 FY27 Results
- ITC’s standalone net profit fell 27% YoY to Rs 3,578.82 crore in Q1 FY27 (April-June 2026), against Rs 4,910.73 crore a year ago.
- The decline was sharper than Street estimates — brokerages had pencilled in an 11-13% YoY profit fall; the actual drop came in roughly double that.
- Gross revenue rose 28% YoY to Rs 26,794.47 crore, but this is inflated by a sharp excise duty hike on cigarettes — not organic growth.
- Net revenue fell 14.4% YoY (down 6% excluding the Agri Business), also missing the estimated range.
- FMCG-Others (foods, personal care, stationery) revenue grew 12% YoY — one of the few metrics that broadly matched analyst expectations.
- Agri Business revenue dropped 17% YoY on West Asia-linked trade disruptions.
- Consolidated PAT fell 15.6% YoY to Rs 4,508.79 crore, aided by a one-time Rs 405.88 crore gain.
ITC Q1 FY27 Results: The Headline Numbers
ITC Limited on July 31, 2026 reported its unaudited financial results for the quarter ended June 30, 2026 (Q1 FY27), showing a divergence between headline revenue growth and underlying profitability. Standalone net profit came in at Rs 3,578.82 crore, down 27.1% year-on-year, while gross revenue from the sale of products and services climbed 28.1% YoY to Rs 26,794.47 crore.
The results were reviewed by the Audit Committee and approved by ITC’s Board at a meeting that concluded at 4:20 pm, with statutory auditors S R B C & Co LLP issuing an unmodified review report.
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ITC Q1 FY27: Street Expectations vs Actual Results
Brokerages had already flagged a weak quarter well before results day, pointing to a cumulative ~45% tax hike on cigarettes as the primary drag. But the actual numbers missed even those lowered bars.
| Parameter | Street Expectation (Pre-Results) | Actual Result | Comparison |
|---|---|---|---|
| Standalone Net Profit (YoY) | Axis Securities: -13% to Rs 4,272 cr | -27.1% to Rs 3,578.82 cr | Decline came in nearly double what was modelled |
| Standalone Net Revenue (YoY) | Axis Securities: -10.2% to Rs 17,597 cr | -14.4% to Rs 16,812 cr | Came in below the estimated figure |
| Consolidated Net Revenue (YoY) | Upstox: -7% to -10% to Rs 19,500-20,250 cr | -11.0% to Rs 18,955 cr | Came in below the lower end of the estimated range |
| Cigarette Segment Net Revenue (YoY) | Kotak Institutional Equities: -20% (on ~9% estimated volume decline) | -25% | Decline sharper than modelled |
| FMCG-Others Revenue Growth (ex-cigarettes) | “Healthy double-digit growth” expected broadly across brokerages | +12% YoY (+16% ex-Staples) | Broadly in line — one of the few segments that held up as expected |
Sources: Axis Securities and Kotak Institutional Equities estimates as reported by BusinessToday (July 31, 2026); Upstox Q1 preview (July 31, 2026); Business Standard Q1 preview (July 29, 2026)
Even analysts who had already braced for a weak print underestimated how much the staggered pricing response to the tax hike would compress margins.
ITC shares had already fallen over 30% year-to-date and nearly 34% over the past 12 months heading into results, a sign the market had partly priced in the weakness, but the magnitude of the profit miss still stands out against consensus.
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Standalone Financials: Revenue Up, Profit Down
| Particulars (Rs cr) | Q1 FY27 | Q1 FY26 | YoY Change |
|---|---|---|---|
| Gross Revenue | 26,794.47 | 20,921.78 | +28.1% |
| Net Revenue | 16,812 | 19,635 | -14.4% (ex-Agri: -6%) |
| EBITDA | 4,514 | 6,261 | -27.9% |
| Profit Before Tax | 4,759.41 | 6,543.48 | -27.3% |
| Net Profit (PAT) | 3,578.82 | 4,910.73 | -27.1% |
Source: ITC Limited unaudited standalone financial results, BSE/NSE filing dated July 31, 2026
Why Cigarette Revenue “Jumped” 81% — The Excise Duty Story
The most striking number in the filing is the Cigarettes segment’s gross revenue, which surged 81% YoY to Rs 15,383.55 crore. ITC has flagged in its notes that this isn’t a like-for-like comparison.
Following the expiry of the GST Compensation Cess, the government raised GST and Central Excise duty on cigarettes effective February 1, 2026, and since excise duty isn’t excluded from gross revenue, the reported figure carries a large pass-through effect.
The real story is further down: Cigarettes segment net revenue actually fell 25%, and segment PBIT dropped 35% YoY to Rs 3,341.23 crore, as ITC absorbed the tax shock through staggered pricing to protect volumes from illicit trade migration, a sharper decline than Kotak’s pre-results estimate of a 20% fall.
Segment-Wise Performance: FMCG Strength, Agri Weakness
| Segment | Revenue Q1 FY27 (Rs cr) | YoY | Segment Result (PBIT) | YoY |
|---|---|---|---|---|
| Cigarettes | 15,383.55 | +81% | 3,341.23 | -35% |
| FMCG-Others | 6,481.95 | +12% | 478.61 | +21% |
| Agri Business | 8,082.06 | -17% | 353.79 | -18% |
| Paperboards, Paper & Packaging | 2,307.24 | +9% | 224.22 | +38% |
Source: ITC Limited segment-wise standalone results, BSE/NSE filing
FMCG-Others delivered the quarter’s steadiest show, with revenue up 16% excluding staples, led by 20%-plus growth in dairy, snacks, noodles and frozen snacks, alongside a strong rebound in notebook sales. Atta was the drag, hit by heat waves, an LPG shortage and soft wheat prices.
Agri Business revenue fell 17%, though ITC said underlying growth was 9% after adjusting for a high base and West Asia-related disruptions. Paperboards was the standout, with PBIT margin expanding 200 basis points on better realisations and moderating wood costs.
Consolidated Results and the Sproutlife Foods Gain
| Particulars (Rs cr) | Q1 FY27 | Q1 FY26 | YoY Change |
|---|---|---|---|
| Gross Revenue | 29,409.82 | 23,007.49 | +27.8% |
| Net Revenue | 18,955 | 21,304 | -11.0% (ex-Agri: -2%) |
| EBITDA | 5,181 | 6,816 | -24.0% |
| PAT (before exceptional items) | 4,103 | 5,343 | -23.2% |
| PAT (reported) | 4,508.79 | 5,343.41 | -15.6% |
Source: ITC Limited unaudited consolidated financial results
The gap between consolidated PAT before and after exceptional items stems from Sproutlife Foods Private Limited becoming a subsidiary from April 1, 2026. ITC re-measured its existing stake at fair value under Ind AS 103, booking a Rs 405.88 crore gain that flattered the reported bottom line. Strip that out, and consolidated profit fell a sharper 23.2%.
Other Business Highlights and Macro Backdrop
ITC’s Fresh Food Business posted GMV growth of 90% YoY, crossing an annual run-rate of Rs 300 crore across 75 cloud kitchens in five cities. Management also flagged heightened uncertainty from the West Asia conflict, sharp crude oil price volatility, and a significant monsoon deficit versus last year as near-term monitorables for inflation and demand.
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Why This Matters Today
ITC’s Q1 FY27 results are significant not only because of the quarterly numbers but also because they provide a broader picture of India’s consumption and cost environment. As one of the largest constituents of the Nifty 50 and a leading FMCG company, ITC’s performance is often viewed as a proxy for consumer demand and corporate profitability.
The quarter highlighted that FMCG demand remains resilient, with strong growth across dairy, snacks, noodles and personal care categories. However, the sharp decline in profit despite healthy revenue growth indicates that margin recovery is becoming a bigger focus than topline expansion for investors.
The results also offer insights into how higher taxation, crude-linked input costs, global supply-chain disruptions and inflationary pressures are influencing corporate earnings. Going forward, the market is likely to closely monitor pricing actions, commodity costs, rural demand and management’s ability to improve margins over the next few quarters.
Also Read: ITC Q1 FY27 Results on July 31: Cigarette Tax Impact
NiftyTrader Desk View
| Stock | Key Technical Trigger | Trader View |
|---|---|---|
| ITC | Immediate support near Rs 282; resistance clustered around Rs 288-290, close to the stock’s 52-week low of Rs 275 | RSI near the 50 mark reflects a neutral trend; given the profit miss versus Street estimates, price action around the resistance zone in the sessions ahead will be a key trigger to watch |
Technical levels as of July 30, 2026 close (Rs 285.05); indicative only and subject to change with market activity.
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Bottom Line
ITC’s Q1 FY27 print is a tale of two numbers: a headline revenue jump that owes more to an excise duty reset than genuine demand, and a profit decline that outpaced even the Street’s already-bearish estimates. Brokerages like Axis Securities and Kotak had braced for weakness from the cigarette tax hike, but the actual hit to margins was deeper across nearly every reported metric except FMCG-Others, which held up broadly as expected.
This article is for informational purposes only and does not constitute investment advice. NiftyTrader is not a SEBI-registered investment advisor. Please consult a certified financial advisor before making any investment decisions.
