ITC Q1 net profit falls 27% on higher cigarette taxes, revenue up 28%
Times of India | 1 August 2026
Kolkata: Higher taxes on cigarettes pulled ITC’s Q1 net profit down 27% to Rs 3,578 crore against Rs 4,910 crore recorded in the corresponding period last fiscal. The revenue, however, rose 28% to Rs 27,588 crore from Rs 21,731 crore.
The company attributed the margin pressure to operating uncertainties stemming from the West Asia conflict, which triggered volatility in crude prices and trade supply chain disruptions. It also flagged imported inflation, monsoon deficit and lower Kharif sowing as near-term concerns.
To counter tax hikes, ITC implemented over 30 portfolio interventions and staggered pricing actions to prevent volume migration to illicit trade.
Meanwhile, the non-cigarette FMCG segment posted robust growth, with revenue up 12% YoY (ex-staples up 16%) and segment PBIT rising 21%, driven by dairy, snacks, noodles, frozen foods and personal care products.