ITC‘s branded packaged foods business delivered one of its strongest performances in recent years in FY26, even as the company had to contend with supply chain disruptions from the West Asia conflict, a sharp hike in cigarette taxes from February, and subdued agri exports.
For the full year ended 31 March 2026, the company’s standalone gross revenue rose 10.1% to Rs 80,867 crore from Rs 73,467 crore a year ago. EBITDA grew 4.9% to Rs 25,208 crore. Profit after tax came in at Rs 20,286 crore, up 1% year-on-year, weighed down by exceptional items worth Rs 184 crore.
Macro backdrop: India resilient, global risks linger
According to the company’s investor presentation, India remained one of the fastest-growing major economies in FY26, with real GDP growth estimated at 7.6% against 7.1% in FY25, according to RBI estimates cited by the company. Private consumption, improving rural and urban demand, income tax cuts, GST rationalisation and monetary easing all contributed to the pickup in the second half of the year.
Headline inflation, however, firmed up in the second half, with CPI reaching 3.4% in March 2026, reflecting an uptick in food prices and higher global energy costs linked to the West Asia conflict. For FY27, the RBI projects real GDP growth at 6.9%.
ITC flagged the West Asia conflict as a key monitorable, noting that a prolonged disruption, combined with emerging El Niño conditions, could pose risks to growth, inflation and India’s current account. Bilateral trade deals with the US, UK, the EU, New Zealand and Oman were cited as positives for India’s medium-term growth outlook.
FMCG-Others: Margin expansion alongside double-digit growth
The FMCG-Others segment, which houses ITC’s branded packaged foods, personal care and stationery businesses, reported segment revenue of Rs 24,210 crore for FY26, up 10.1% year-on-year. Excluding the recently amalgamated Sresta Natural Bioproducts (24 Mantra Organic), notebook sales excluded, the growth was 11.3%. Segment results rose 14.1% to Rs 1,803 crore.
In Q4 alone, segment revenue grew 15% year-on-year to Rs 6,304 crore, with segment results surging 51% and EBITDA margin expanding approximately 200 basis points year-on-year to 11% (excluding Sresta). The company noted that a sharp surge in prices of key inputs, edible oil, soap noodles, and packaging materials, towards the end of the quarter, triggered by the West Asia conflict, was being mitigated through supply chain agility and pricing actions.
Furthermore, as per the company, the Aashirvaad staples franchise sustained strong growth. Value-added variants and staples adjacencies have now grown roughly 1.7 times over two years and account for about 16% of the Aashirvaad staples portfolio. New launches included Aashirvaad High Protein Atta and an extension of Aashirvaad Besan to additional markets. The fresh dairy portfolio under Aashirvaad Svasti, currently available in Bihar, West Bengal and Jharkhand, maintained a high growth trajectory.
In biscuits, the Sunfeast Dark Fantasy range consolidated its position as the No. 1 biscuit brand in the modern trade channel. YiPPee! Noodles held its position as the No. 2 brand in the instant noodles category, with a new premium Pan Asian range comprising Gochujang, Tom Yum and Yaki Udon variants.
The frozen foods business under ITC Master Chef and Farmland now spans over 80 products. The personal care portfolio, including Fiama, Savlon, Engage and Nimyle, delivered strong growth in new-generation channels. Nearly 100 new products were launched across categories during the year.
Modern trade and digitally enabled sales now account for 34% of ITC’s branded packaged foods, personal care and agarbatti sales. The company’s eB2B platform, UNNATI, now covers more than 8 lakh outlets, as per the investor call.
What to watch
For years, ITC’s FMCG business was seen as a slow-burning bet that delivered scale but struggled with profitability. FY26 suggests that this may finally be changing. Stronger margins, a sharper push into premium products, and growing sales through modern retail and digital channels indicate the company is beginning to find its footing in consumer goods, even as inflation and global supply disruptions continue to test the broader market.