ITC Q1 FY27 Profit Drops 15.6% To Rs 4,508 Crore Amid Rising Expenses

Diversified group ITC Ltd on Friday reported a 15.6 per cent decline in its consolidated profit to Rs 4,508.79 crore for the June quarter of 2026-27, mainly due to an increase in expenses. It had posted a consolidated profit of Rs 5,343.41 crore in the April-June quarter a year ago, according to a regulatory filing by the Kolkata-headquartered company. ITC's revenue from sale of products increased by 27.82 per cent to Rs 29,409.82 crore in the June quarter of FY27. Its revenue from operations was at Rs 29,523.3 crore, up 27.64 per cent in the first quarter of FY27 compared to Rs 23,129.35 crore a year ago.

"Q1 FY27 was marked by heightened uncertainty in the operating environment due to the ongoing conflict in West Asia, which triggered a sharp increase & volatility in the price of crude oil & crude-linked products along with significant trade & supply chain disruptions," said ITC.

The company said it has "robust performance by Group companies" led by ITC Infotech, Surya Nepal, Sproutlife Foods and ITC Hotels.

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ITC total expenses were at Rs 24,809.95 crore, up 48 per cent YoY in the June quarter. Its total consolidated income, which includes other income, was at Rs 30,179.01 crore, up 26.74 per cent in the quarter under review. Over the consumption trend, ITC said, "demand, both in rural and urban markets, remained resilient during the quarter; imported inflation is a key watch-out in the near-term."

India is currently experiencing a 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. 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," it said.

The macroeconomic fundamentals of the Indian economy remain resilient, supported by proactive and agile policy actions by the Government of India.

"Sustained public capex, stable monetary conditions, banking and liquidity measures to support credit growth, and steps to attract foreign capital, curb foreign exchange volatility and strengthen investment activity, augur well for sustained growth of the Indian economy," said ITC. The share of ITC Ltd on Friday settled at Rs 280.95 on BSE, down 1.51 per cent from the previous close.

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