Helped by price increases in its core cigarettes business to limit the impact of higher taxes, ITC Ltd on Thursday reported a 5% year-on-year increase in its standalone net profit to Rs 5,113 crore for the March 2026 quarter (Q4FY26) as against a net profit of Rs 4,875 crore in the same quarter last fiscal (Q4FY25).
The company's revenue from operations increased 17% year-on-year (YoY) to Rs 21,695 crore in the reported quarter.
ITC, the maker of Gold Flake and Classic cigarettes, said that an increase in GST rate from 28% of transaction value to 40% of retail sale price along with a steep hike in excise duties with effect from 1st February, 2026 upon phasing out of Compensation Cess, has resulted in an unprecedented increase in tax incidence on cigarettes.
ITC added that it has adopted a strategic approach to mitigate the impact of the unprecedented increase in tax incidence and sustain its market standing. The company reported cigarette revenue of Rs 11,066 crore in Q4 FY26, compared with Rs 8,400 crore in the January–March quarter of the previous year.
“This includes, staggered and agile pricing actions to minimise the risk of a significant shift of volumes to illicit trade and consequent loss of revenue to the Exchequer, and re-architecting the product portfolio by leveraging a diverse range of powerful trademarks. The Business continues to respond with speed & agility and has taken several steps in the past couple of months to fortify its portfolio and sustain market standing,” said ITC in a statement.
The Kolkata-headquartered company added that the year ahead presents an extremely challenging operating environment in view of the unprecedented increase in taxation that will test the resilience and adaptability of legitimate players in the industry.
Meanwhile, ITC’s 'Other FMCG business', which includes brands such as Aashirvaad and Sunfeast, reported a 15% year-on-year increase in revenue to Rs 6,304 crore in Q4FY26, while profit from the segment rose 51%.
Revenue from the Agri business declined 15% to Rs 3,075 crore in Q4FY26. ITC said that the Agri segment witnessed significant disruption during the year, triggered by sweeping tariff measures imposed by the United States, and climate-related supply uncertainties in key producing regions.
The company highlighted that the ongoing West Asia conflict has heightened concerns around India’s energy security and imported inflation.
“A prolonged disruption, coupled with emerging El Niño conditions that could weaken monsoons and intensify heatwaves, poses risks to growth, inflation and the Current Account. These factors may also have second‑order impacts on consumer sentiment and demand conditions and remain key monitorables in the near term,” it said.