ITC Limited's agri business revenue has doubled to approximately ₹20,300 crore in FY26. The company is now expanding its climate-smart agriculture program to 40 lakh acres by 2030. This shift aims to improve crop yields and farmer returns while strengthening ITC’s position as a major private agri-enterprise in India.
Detailed Coverage
ITC Limited has achieved a significant financial milestone, with its agri-business division reporting revenue of approximately ₹20,300 crore in FY26. This performance, representing a doubling of revenue over the past five years, underscores the company's expanding influence in the domestic agricultural supply chain. As the firm continues to scale its operations, it is increasingly focusing on climate-smart agriculture (CSA) to improve productivity and supply chain resilience.
Expanding Climate-Smart Agriculture
ITC is scaling its climate-smart agriculture initiative, targeting a footprint of 40 lakh acres by 2030, up from the current 32 lakh acres. This program, which currently supports over 12 lakh farmers, employs precision farming technologies such as IoT-based weather monitoring, remote sensing, and drone services. According to the company, these practices have led to reported yield improvements of 10% to 20% in key crops like rice and wheat, alongside notable cost reductions for farmers.
Strategic Focus on Value Chains
About 94% of ITC’s business operations are linked to agriculture, making the efficiency of its procurement and value-addition processes central to its financial health. The company currently manages 21 value chains across 23 states, procuring nearly 6 million tonnes of produce annually. To further increase value, ITC is investing in new horticulture clusters that utilize both open-field and controlled-environment farming. This is part of a broader strategy to move beyond basic commodities toward higher-value products, including organic goods and specialized crops, which have seen a 33% compound annual growth rate over the last five years.
Digital Ecosystem and Market Context
Central to this expansion is the ITCMAARS digital platform, which provides personalized farming advice and market linkages to over 2.6 million farmers. By integrating this digital ecosystem, the company aims to enhance the traceability and reliability of its fresh produce supply chains. While India is a major global agricultural producer, the sector faces structural challenges, including fragmented landholdings and sensitivity to climate patterns. ITC’s transition toward a more tech-enabled, value-led model is a strategic effort to mitigate these risks while capturing growth in the broader FMCG market, which the company estimates could reach ₹8 trillion by 2035.
Investor Monitorables
Investors looking at ITC’s long-term trajectory may track the execution of these agricultural clusters and the adoption rates of the ITCMAARS platform. Additionally, the ability of the company to maintain margin growth in its value-added agri-portfolio, while managing the complexities of procurement across different climatic zones, will be critical. The ultimate financial impact will depend on the sustained success of these precision farming interventions in balancing input costs against fluctuating commodity prices.