ITC Q1 Results: Net Profit Falls 27% to ₹3,579 Crore Despite Revenue Jump

ITC Ltd recorded a 27% drop in net profit to ₹3,579 crore for the quarter ended June 30, 2026. The actual figures fell short of market estimates.

The conglomerate's revenue from operations rose 28% to ₹26,943 crore from ₹21,694 crore in the year-ago period.

The EBITDA was down 27.9% at ₹4,514 crore versus ₹6,261 crore. Margins were at 26.7% versus 31.7%.

Ahead of the post-market results announcement on July 31, ITC shares closed 1.4% lower at ₹281 apiece.

Global Geopolitical Headwinds Weigh

The company attributed the profit decline to external macroeconomic challenges.

"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 & crude-linked products along with significant trade & supply chain disruptions," the company said in a statement.

Although domestic consumption remained resilient, imported inflation remains a key concern.

"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," it added.

Monsoon Deficit Poses Risks

The conglomerate highlighted agricultural risks to future growth. These factors could compound existing geopolitical pressures.

"India is currently experiencing significant deficit in monsoon and lower Kharif sowing levels compared to the same period last year. Additionally, spatial and temporal variations in monsoon would remain a key monitorable," the company said.

"A protracted conflict in West Asia, alongside emerging El Niño conditions that may weaken monsoons and intensify heatwaves, could weigh on growth, inflation and the Current Account."