The shares of a Large-Cap conglomerate company, which specializes in several sectors including Fast Moving Consumer Goods (FMCG), hotels, paperboards and packaging, agribusiness, and information technology, are gaining attention. In this article, we will explore whether ITC’s Cigarette Business still remains its main source of Revenue.
With a market capitalization of Rs. 4,98,885.61 crores on Friday, the shares of ITC Limited jumped upto 0.18 percent, making a high of Rs. 406.50 per share compared to its previous closing price of Rs. 405.75 per share.
ITC Limited is a diversified conglomerate with a strong presence in FMCG, hotels, paperboards and packaging, agribusiness, and information technology. ITC generates revenue through a broad spectrum of sectors, each contributing to its sustainability and growth.
The company plays a pivotal role in driving India’s agricultural value chain, leveraging innovative approaches in sourcing, manufacturing, and retailing. ITC also focuses on sustainable growth, implementing initiatives that enhance environmental conservation, rural development, and social welfare.
By creating synergies across its multiple business segments, ITC continues to deliver long-term value, contributing significantly to the country’s economy while maintaining a strong commitment to sustainability and responsible corporate practices.
Revenue Segmentation
The company’s performance in each of these segments reflects its strategic focus on development and sustainable growth. Below is a breakdown of the consolidated segment-wise revenue for the quarter ended Q1FY26, compared to the same period last year.
FMCG (Fast-Moving Consumer Goods)
Cigarettes
Revenue from the cigarette segment grew to Rs. 8,520 crore in Q1 FY26, up from Rs. 7,918 crore in Q1 FY25, reflecting a 7.6% YoY growth.
Others (Non-cigarette FMCG)
The revenue from the other FMCG segments, which include food and personal care products, increased to Rs. 5,777 crore in Q1 FY26, up from Rs. 5,491 crore in Q1 FY25, marking a 5.2% YoY growth. The Key drivers for growth include Staples, Biscuits, Dairy, Premium Personal Wash, Homecare, and Agarbatti.
Total FMCG Revenue
The Revenue to Rs. 14,297 crore in Q1 FY26, up from Rs. 13,409 crore in Q1 FY25, showing a 6.6% YoY growth.
Agri Business
The Agri Business segment reported significant growth, with revenue rising to Rs. 9,685 crore in Q1 FY26, up from Rs. 6,973 crore in Q1 FY25, representing a 38.9% YoY growth. This growth was driven by strong performance in bulk commodities and exports of Leaf Tobacco.
Paperboards, Paper & Packaging
The Paperboards, Paper & Packaging segment saw a 7.0% YoY growth, with revenue increasing to Rs. 2,116 crore in Q1 FY26 from Rs. 1,977 crore in Q1 FY25. The segment faced challenges due to an influx of low-priced supplies in the global markets and subdued realizations.
Others
The Others segment, which includes businesses like ITC Grand Central Hotel, Mumbai (managed by ITC Hotels Ltd.), and the FoodTech Business. Revenue increased to Rs. 68 crore in Q1 FY26, compared to Rs. 33 crore in Q1 FY25, recording a growth of 106.5% YoY.
ITC Limited’s total revenue for Q1 FY26 was Rs. 23,007 crore, up from Rs. 19,239 crore in Q1 FY25, reflecting a 19.6 percent YoY growth, and the Net Profit was Rs. 5,343 crore, up from Rs. 5,092 crore in Q1 FY25.
Conclusion
In FY25, the FMCG – Cigarettes segment was the leading pillar of ITC’s revenue, contributing Rs. 7,918 crore, making it the highest revenue-generating segment for the company. However, in FY26, the dynamics have shifted. The Agri Business segment, which includes key areas like Leaf Tobacco, has now surpassed the cigarette business, emerging as the top performer with Rs. 9,685 crore in revenue, slightly ahead of the cigarette segment, which generated Rs. 8,520 crore.
This shift highlights the growing importance of ITC’s diversified business portfolio, with Agri Business, driven by both bulk commodities and the strong performance of Leaf Tobacco, now becoming a dominant force in driving the company’s overall revenue for FY26, while remaining a crucial pillar of the company’s long-term growth strategy.
Company Overview & Others
ITC Limited is a major Indian conglomerate headquartered in Kolkata. The company was originally established in 1910 as the Imperial Tobacco Company of India Limited, functioning chiefly as a tobacco business during its early years. Over time, ITC diversified its operations, evolving far beyond its tobacco origins to become a prominent multi-sector enterprise.
Today, ITC operates across several industries, including Fast Moving Consumer Goods (FMCG), hotels, paperboards and packaging, agribusiness, and information technology. The company’s FMCG portfolio features popular brands in food, personal care, education, and stationery products, among others.
The company is also a leader in the Indian hotel sector, running luxury hotel properties under the “ITC Hotels,” “WelcomHotel,” and “Fortune Hotels” brands. The group remains a market leader in the cigarette and tobacco market in India, but has built significant businesses in many other segments.
Written by Sridhar J
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Is the cigarette business still the main pillar of ITC’s revenue? Here’s what you need to know appeared first on Trade Brains.