ITC’s digital first brand bets cross Rs 1,350 crore ARR in FY26

MUMBAI: From shopping carts to growth charts, ITC’s acquisition playbook is beginning to pay dividends, with its new-age brands adding fresh momentum to the FMCG giant’s growth story. ITC’s strategy of acquiring digital-first and premium consumer brands is beginning to deliver tangible results, with its portfolio of recently acquired businesses crossing an annual revenue run rate (ARR) of more than Rs 1,350 crore in FY26.

The portfolio includes 24 Mantra Organic, Yoga Bar, Mother Sparsh, and Prasuma and Meatigo, all of which recorded robust growth during the year as consumers increasingly gravitated towards organic, health-focused and premium products.

The milestone marks significant progress under ITC’s ‘Next Strategy’, which focuses on building a future-ready consumer portfolio through acquisitions in fast-growing categories. The company believes these businesses will strengthen its position in premium food and personal care while widening its presence in emerging consumer segments.

The acquired brands also complemented a strong performance by ITC’s FMCG business. Segment revenue rose 10.1 per cent year-on-year to Rs 24,209.75 crore in FY26, while segment profit increased 14.1 per cent to Rs 1,802.63 crore, supported by scale expansion, a richer product mix, disciplined cost management and supply chain efficiencies.

Growth gathered pace in the second half of the fiscal, with FMCG revenue rising 13.6 per cent year-on-year and segment profit surging 46.4 per cent, reflecting stronger demand across categories.

ITC also continued to strengthen its omnichannel strategy, expanding its presence across modern trade, e-commerce and quick commerce platforms. Digitally enabled sales, together with modern trade, now contribute 34 per cent of the company’s FMCG business, underlining the growing importance of organised and online retail channels.

At the consolidated level, ITC reported revenue from operations of Rs 89,913.33 crore in FY26, up from Rs 81,612.78 crore a year earlier. Total income increased 9.7 per cent to Rs 92,339.13 crore, while profit from continuing operations rose 4.8 per cent to Rs 21,018.15 crore, despite a challenging operating environment.

ITC now joins a growing list of FMCG majors using acquisitions to drive future growth. Hindustan Unilever’s acquired brands Minimalist and Oziva, along with Marico’s Beardo and Plix, have each crossed the Rs 1,000 crore revenue milestone, highlighting how digital-first brands are becoming an increasingly important growth engine for India’s consumer goods companies.