ITC’s packaged food business has crossed the revenue mark of $ 2 billion (about Rs 20,504 crore) for the first time in the financial year 2025-26 (FY26). According to the company’s annual report, a growth of 12% was recorded in the packaged food business on an annual basis. With this, the total expenditure of customers (including trade margin and GST) on the company’s FMCG brands other than cigarettes increased to Rs 37,000 crore. This is 9% more than last year.
Gained momentum from premium products and GST relief
According to the company, in the last financial year, the FMCG business benefited from the increasing share of premium and high profit giving products, relief in GST and better consumer demand. While the packaged food business had grown by 6% in FY25, its pace doubled to 12% in FY26. Food business still makes the biggest contribution to ITC’s total FMCG business.
Slow pace of stationery and personal care business
However, the company’s other FMCG businesses like education and stationery, personal care, matches and incense sticks grew by only 2% and their total sales stood at Rs 3,810 crore. The company said that in the first half the stationery business was affected due to tough competition from local companies, but there was a significant improvement in it in the second half.
Profit increased, but cigarette tax became a cause for concern
ITC’s net profit in FY 2025-26 increased by less than 1% to Rs 20,286 crore, while total revenue increased by 10% to Rs 80,867 crore. EBITDA also increased by 4.9% to Rs 25,208 crore. On the other hand, the company has described the increased tax on cigarettes as a big challenge for its business. ITC says that increasing taxes can encourage illegal trade, which can affect farmers, MSMEs, retailers and the entire value chain. Despite this, the company is confident that it will maintain its position in the legal cigarette market.
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