ITC Limited, India’s largest diversified conglomerate, with FMCG, Hotels and Packaging and Agri-Business, posted Q1 results on Saturday. The company reported a healthy set of numbers in the first quarter ended June 2025, boosted by its cigarettes business resilience, sustained momentum in its fast-moving consumer goods (FMCG) segment, and slow revival in its hotels segment. The performance was achieved notwithstanding a tough macroeconomic environment, proving its capability to ride sectoral turbulence and maintain growth.
Q1 results:
- Sales at Rs 23,129 crores : +19.53% YoY, +13.51% QoQ
- Net Profit at Rs 5,244 crores : +2% YoY, -73.24%
Strong Profit despite Headwinds
In its over-weekend announced Q1 FY2025 results, ITC had a consolidated net profit of ₹5,244 crore, which shows consistent year-on-year growth. Operations revenue had crossed ₹17,500 crore, with earnings before interest, tax, depreciation, and amortisation (EBITDA) margins remaining firm, with the support of strong cost management and operational efficiencies across business divisions.
Cigarettes and FMCG Drive Performance
The cigarettes operation, ITC’s long-standing core business, remained the source of the majority of the profit. Cigarette volumes increased modestly as out-of-home consumption returned to normal after a temporary election-inspired dip. Premium brand launches and a wider distribution network also boosted sales and profitability, even as the industry confronts continued regulatory pressure.
The non-cigarette FMCG business performed strongly, driven by top brands like Aashirvaad, Sunfeast, Bingo, and Fiama. They posted strong double-digit growth in major categories, with rural market penetration, product innovation, and enhanced digital distribution channels driving the growth. The premiumisation push by the company and new product launches partially mitigated the weakness in urban consumption.
Hotels and Paper Business Display Uptick
ITC’s hotel segment was aided by higher demand for travel, better occupancy rates, and the revival of weddings and events. Although margins are still short of pre-pandemic levels because of increased operating expenses, the management felt hopeful regarding sustained revival in the business.
The paperboards, paper, and packaging business recorded robust revenues on the back of FMCG and e-commerce demand. The company’s emphasis on sustainable packaging technologies ensured its competitive position and eco-friendly objectives.
Agri Business Faces Pressures
The agri business recorded steady performance in spite of dealing with unpredictable monsoons and vagaries in global markets. Emphasis on value-added exports and gains in efficiency continued to ensure profitability for the segment.
Management Outlook
ITC management credited the strong quarterly performance to its diversified portfolio and nimble supply chain. In its announcement, the company emphasized its focus on long-term sustainability, capacity addition, and new markets.
Looking forward, ITC is to speed up expansion in high-margin FMCG segments, drive digital and rural thrusts, and leverage the hospitality sector’s revival. Analysts note that ITC’s brand value, robust cash flows, and conservative capital deployment place it on strong footing for sustained value generation.
