ITC’s packaged foods business crossed the $2-billion revenue milestone in FY26, supported by premium product launches, favourable tax measures and improving consumer sentiment, according to the company’s latest annual report.
The food business recorded gross sales of Rs 20,504 crore during the fiscal year, registering a 12% year-on-year increase. Consumer spending across ITC’s non-cigarette FMCG portfolio reached Rs 37,000 crore, including trade margins and GST, reflecting stronger momentum in the company’s branded products business.
The company said its FMCG segment witnessed improved performance during the year as premium and higher-margin products contributed a larger share to sales. The business also benefited from broader economic factors such as GST reductions, lower interest rates, income tax relief measures and favourable monsoon conditions, which helped strengthen demand during the second half of the fiscal year.
Consumer spending on ITC’s FMCG brands rose 9% in FY26, compared with 4.6% growth in the previous year. The packaged foods segment remained the company’s largest contributor within the FMCG portfolio.
While the food business delivered strong growth, ITC’s other FMCG segments, including education and stationery products, personal care, safety matches and agarbattis, posted comparatively modest gains, growing 2% to Rs 3,810 crore. The company noted that its education and stationery business experienced competitive pressures during the first half of the year before improving in later quarters.
ITC said its portfolio continues to maintain strong positions across several categories, with leadership in branded atta, cream biscuits, notebooks and bridge snack segments, while also holding a significant presence in instant noodles and incense sticks.
On the financial front, the company reported a net profit of Rs 20,286 crore in FY26, while gross revenue increased 10% to Rs 80,867 crore. EBITDA rose 4.9% to Rs 25,208 crore during the period.
However, the company highlighted concerns over recent taxation changes affecting the cigarette industry. ITC said the sharp increase in taxes could strengthen illicit trade and affect stakeholders across the value chain, including farmers, retailers and MSMEs.
Despite near-term challenges, the company expressed confidence in strengthening its market position while continuing to focus on growth opportunities across its consumer business portfolio.