ITC Q1 FY27 Result: Net profit declines 27% YoY amid West Asia disruptions; revenue grows to ₹26,943 crore

The company's revenue from operations, however, increased 28% year-on-year (YoY) to ₹26,943 crore during the quarter under review in contrast to ₹21,070 crore in the year-ago period.

ITC’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) dropped 28% to ₹4,514 crore in Q1 FY27 as against ₹6,261 crore in the corresponding quarter of the previous fiscal year.

For Q1 FY27, the EBITDA margin contracted to 16.75% as against 29.71% YoY.

“Q1 FY27 was marked by heightened uncertainty in the operating environment due to the ongoing conflict in West Asia, that triggered a sharp increase and volatility in the price of crude oil and crude-linked products along with significant trade and supply chain disruptions,” said ITC in a statement.

Segment updates

Meanwhile, the FMCG segment delivered a revenue growth of 12% YoY, with the non-staples category growing at 16% YoY. Segment PBIT increased 21% annually.

ITC said the cigarette business undertook a strategic and calibrated response to the unprecedented increase in taxation, while balancing the interests of all stakeholders.

The paper segment sustained its recovery momentum during the period, with revenue growing 9% on a yearly basis and segment PBIT rising 38% YoY.

The agri business segment also recorded an underlying revenue growth of 9% YoY, after adjusting for the impact of West Asia conflict-led trade disruptions and timing differences related to wheat.

ITC’s Fresh Food Business also continued to deliver robust performance, with GMV growing 90% and reaching an annual run rate of around ₹300 crore. The company operated 75 cloud kitchens across five cities during the period, supported by strong consumer feedback and consistently high ratings.

“While consumption demand, both in rural and urban markets, remained resilient during the quarter, imported inflation is a key watch-out in the near-term. India is currently experiencing significant deficit in monsoon and lower Kharif sowing levels compared to the same period last year,” ITC said.

The FMCG major further added that spatial and temporal variations in the monsoon would remain a key monitorable. It also said that a prolonged conflict in West Asia, along with emerging El Niño conditions that could weaken monsoons and intensify heatwaves, may weigh on growth, inflation, and the current account.

Ahead of the earnings, ITC shares settled at ₹281 apiece on the National Stock Exchange, falling 1.42%.