ITC Q3 Earnings: FMCG-Others Revenue Climbs to ₹6,020 Cr, PAT ₹5,089 Cr

India’s diversified giant ITC Ltd reported its Q3 FY26 earnings for the quarter ending December 31, 2025. The company posted solid revenue growth, highlighted by FMCG-Others revenue climbing to around ₹6,020 crore. On the profit front, ITC delivered a respectable Profit After Tax (PAT) of ₹5,089 crore in standalone terms, despite some headwinds during the quarter.

Consolidated Financial Highlights

• Revenue growth: Consolidated gross revenue up 7.1% YoY to ₹21,578 Cr.
• Standalone net revenue: Around ₹18,017 Cr, up 5.6% YoY.
• Profit after Tax (PAT): ₹5,089 Cr, slightly lower than last year.
• Dividend: Interim dividend declared at ₹6.50 per share.
• Insight: Revenue growth outpaced profit growth, indicating rising costs and one-time charges affected profits.

FMCG-Others Segment: Core Growth Engine

• Revenue growth: FMCG-Others up 12.6% YoY.
• PBIT surge: Segment Profit Before Interest and Tax grew 42% YoY.
• Drivers: Staples like atta, spices, noodles, biscuits, dairy, and personal care contributed; digital-first and organic brands like Yogabar, Prasuma, and 24 Mantra accelerated growth.
• Growth factors:
  1. Premiumisation: Consumers opting for better-priced products.
  2. Urban and modern trade growth: Expanded retail footprint and stronger e-commerce sales.
• Takeaway: FMCG-Others could one day rival cigarettes in revenue significance.

Cigarettes Business: Stability & Cash Flow

• Revenue: Grew around 7.9% YoY.
• Growth type: Volume-led with strong premium product performance.
• Risks: Upcoming tax hike effective Feb 1, 2026, could impact volumes and encourage illicit trade.
• Importance: Cigarettes provide high margins and free cash flow; policy changes could affect future profitability.

Hotels, Paperboards & Agri Business Performance

• Hotels: Hospitality is recovering; occupancy rratesare rising, Q3 profit and revenue improved.
• Paperboards & Packaging: Profitability improved, with margins rising even amid occasional shutdowns.
• Agri business: Revenue rose modestly from leaf tobacco exports, coffee, and aqua foods.
• Insight: Diversification reduces reliance on any single segment.

Cost Structure, Margins & Efficiency Measures

• Labour code charge: One-time cost impacted Q3 profits.
• EBITDA margins: Expanded modestly, showing cost control.
• Takeaway: ITC is balancing rising input costs with operational efficiency; long-term cost management seems on track.

Balance Sheet Strength & Cash Position

• Cash flow: Strong, especially from high-margin cigarettes.
• Dividend: Confirms confidence in cash generation.
• Diversification: FMCG, hotels, paperboards, and agri cushion volatility in any single segment.

Investor Insights

• Positive signs:
  • FMCG-Others are growing fast, diversifying revenue.
  • Dividend declaration reflects strong cash flow confidence.
• Risks:
  • Cigarette tax changes could pressure profits.
  • Flat/marginal profit growth due to cost impacts.
• Takeaway: Long-term investors can benefit from diversification; short-term traders should monitor policy and demand trends.

Conclusion

In ITC Q3, revenue growth stands out as the key takeaway. Strong performance from FMCG-Others, stable cigarettes growth, and recovering hotels business paint a picture of resilience. Profit figures might seem steady rather than spectacular, but the underlying trends show adaptable business strategies.

If ITC can maintain cost discipline, grow its FMCG portfolio, and manage regulatory headwinds, its diversified model offers strength in uncertain markets. Investors should watch upcoming policy shifts and quarterly earnings for further momentum cues.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.