ITC Share Price Rises After Q1 Results; Revenue Sees 20% Jump

Market Performance

ITC Ltd shares witnessed a modest uptick on August 4, following the release of its Q1FY26 financial results.

• ITC share price was trading at Rs 419.15, up 0.65% on the NSE at 9:25 a.m.
• The stock moved higher after the company posted stable earnings, despite margin pressures.

Main News

The company reported flat net profit but saw strong topline growth, primarily driven by its cigarettes, FMCG, and agri businesses. This mixed performance was enough to keep investor sentiment positive in early trading hours.

Company Details

ITC Ltd, a diversified conglomerate with presence in cigarettes, FMCG, hotels, agri, and paperboards, reported a stable quarterly performance for the first quarter of FY26.

• Cigarette revenue grew 8%, benefiting from a stable tax structure and market interventions.
• FMCG segment continued its upward trajectory with improved growth figures.
• Agri-business also contributed strongly to revenue gains.
• The paperboard segment, however, remained subdued due to ongoing margin pressure.

Financial Highlights

Revenue

• Q1FY26 Revenue: Rs 21,059 crore
• Q1FY25 Revenue: Rs 17,593 crore
• YoY Growth: 20%

Net Profit

• Q1FY26 Net Profit: Rs 4,912 crore
• Q1FY25 Net Profit: Rs 4,917 crore
• YoY Change: Flat

EBITDA (Implied)

• EBITDA growth remained muted at 3%, reflecting pressure on margins in several segments.

Margins

• Cigarette margins came under pressure due to high-cost leaf tobacco.
• Paper business margins were weak, while FMCG margins showed improvement.

Summary

The ITC share price gained ground after the company posted a stable set of Q1 numbers. Despite flat profits, the 20% revenue growth was a highlight, powered by key verticals like cigarettes, FMCG, and agri-business.

Margins remained under stress in some segments due to input cost inflation, especially in leaf tobacco and paperboard businesses. However, steady sales performance across core businesses ensured a stable operating profile.

The company's broad-based business structure, especially strong traction in the cigarette and FMCG segments, supported overall financial health.