ITC Ltd. began the new financial year on a steady note, posting a decent performance in the first quarter of FY26. The company saw solid revenue growth, even though some of its business segments faced pressure on profit margins.
While the stock didn’t see any major swings in early trading, investors are keeping a close eye on ITC’s bigger picture—especially its long-term growth plans and how the company is positioning itself strategically across its core businesses.
In this article, we’ll break down ITC’s Q1 numbers, explore what’s driving growth, and look at the key factors that could shape the company’s future.
Live Share Price Update
As of 8:30 AM IST, ITC shares were trading at around ₹420.05, gaining 0.86% over the previous day’s close. Early morning volumes were strong, with over 5.6 million shares exchanged, indicating sustained investor interest. Earlier in the session, the stock touched ₹422.00, breaching its 20-day Exponential Moving Average (EMA), and showing a daily gain of over 1.3%.
- Previous Close (Aug 1): ₹416.45
- 7-day Simple Moving Average: ₹417.49
- Today’s Range: ₹417.60 – ₹422.00
Quarterly Results Highlights – Q1 FY26
ITC reported a consolidated gross revenue of ₹23,007 crore, marking a 19.6% YoY growth, driven by stable performance in its core cigarette and agri-business segments.
Key Financial Metrics:
| Metric | Q1 FY26 | YoY Change |
|---|---|---|
| Gross Revenue (Consolidated) | ₹23,007 crore | +19.6% |
| EBITDA | ₹6,816 crore | +4.2% |
| Profit After Tax (PAT) | ₹5,343 crore | +4.9% |
- The cigarette business continued its robust momentum, contributing significantly to revenue and operating profits.
- FMCG and Paperboards segments saw some margin compression due to higher input costs and inventory adjustments.
- The agri-business saw renewed growth from increased exports and domestic institutional demand.
Analyst Sentiment & Market Commentary
Despite modest profit growth, most analysts remain optimistic about ITC’s long-term trajectory, particularly its:
- Strong pricing power in cigarettes,
- Continued expansion in branded packaged foods, and
- Capital-efficient diversification strategy.
Brokerage coverage remains largely bullish, with 92% of analysts suggesting a “Buy” or “Hold”. However, some caution persists regarding:
- Input cost inflation impacting FMCG margins
- Potential regulatory overhangs on cigarette taxation
- Slower-than-expected ramp-up in hotel and paperboard verticals
Market Focus: What’s Next for ITC?
ITC remains a key heavyweight on the Sensex and Nifty 50, helping lift broader market sentiment on the day of results. As FY26 progresses, all eyes will be on:
- Tax developments in cigarettes ahead of the next Union Budget
- Growth acceleration in non-cigarette businesses
- Strategic updates on demerger and listing plans for hotels and ITC Infotech
In summary, ITC’s Q1 FY26 results paint a picture of stable and steady growth. The company’s current share price sits at ₹420.05, reflecting the market’s balanced view of its performance. Revenue grew nearly 20% year-on-year, showing strong demand and business momentum. However, net profit (PAT) grew by a more modest 4.9%, mainly due to margin pressures in some non-core segments.
The cigarette business continues to lead the way, remaining ITC’s most profitable segment. Analysts are generally bullish on the stock, though many advise short-term caution—especially as the company navigates margin pressures and potential tax-related changes in the coming quarters.
Overall, ITC’s fundamentals remain solid, and its diversified business model provides resilience. For investors, the key will be watching how quickly the company can improve margins and how future government policies, especially around taxation, may impact core segments.
If you’re a long-term investor, this is a stock worth tracking closely.
