Whalesbook
ITC's main branded packaged foods business demonstrated strong performance throughout fiscal year 2026, proving resilient against major global and domestic hurdles. The company successfully managed supply chain issues linked to the West Asia conflict, alongside significant cigarette tax increases in February and a slowdown in agricultural exports.
Financial Performance Highlights
For the fiscal year ending March 31, 2026, ITC's standalone gross revenue grew by 10.1% to Rs 80,867 crore from Rs 73,467 crore in the previous year. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 4.9% to Rs 25,208 crore. The company's profit after tax for the period reached Rs 20,286 crore, a 1% rise from the prior year, although this was affected by exceptional items totaling Rs 184 crore.
India's Economic Landscape
India's economy showed notable strength, with real GDP growth estimated at 7.6% for FY26, up from 7.1% in FY25, according to ITC's citing of Reserve Bank of India (RBI) figures. This economic momentum was driven by strong private consumption, improved demand in both rural and urban areas, income tax adjustments, GST reforms, and monetary easing. However, inflation increased in the latter half of the year, with the Consumer Price Index (CPI) reaching 3.4% in March 2026, largely due to rising food prices and global energy costs impacted by the West Asia conflict.
FMCG-Others Segment Performance
The FMCG-Others segment, which includes ITC's branded packaged foods, personal care, and stationery businesses, reported Rs 24,210 crore in revenue for FY26, an increase of 10.1% year-on-year. After accounting for recent amalgamations and notebook sales, the segment's growth was a notable 11.3%. Segment results improved by 14.1% to Rs 1,803 crore.
Margin Growth and New Products
In the fourth quarter of FY26, the segment's revenue grew by 15% year-on-year to Rs 6,304 crore. Segment results saw a significant rise of 51%, with EBITDA margins expanding by about 200 basis points to 11%, excluding the impact of Sresta Natural Bioproducts. ITC demonstrated flexibility in managing price changes for essential inputs like edible oil and packaging materials, which were challenged by the West Asia conflict.
ITC's Aashirvaad staples brand continued its strong performance, with value-added products now making up around 16% of its offerings. New product launches included Aashirvaad High Protein Atta and expanded distribution for Aashirvaad Besan. The Sunfeast Dark Fantasy biscuit line maintained its leading position in modern trade, while YiPPee! Noodles held its No. 2 spot in the instant noodles market with a new premium Pan Asian flavor. The company also expanded its frozen foods range under ITC Master Chef and Farmland, now offering over 80 items. Personal care brands like Fiama and Savlon also performed well across new sales channels, introducing nearly 100 new products during the year. Modern trade and digital platforms now account for 34% of ITC's branded packaged foods and personal care sales.