Brands
Cigarettes and Surplus: ITC lights up with Rs 4912 crore Q1 profit
MUMBAI: No smoke without earnings and this quarter, ITC puffed its way to a Rs 4,912 crore net profit. The diversified conglomerate reported a strong start to FY26, with standalone net profit from continuing operations hitting Rs 4,912.36 crore in Q1 (ended June 2025), slightly ahead of last year’s Rs 4,819.93 crore. There were no exceptional items this time, making the growth all the more clean-cut unlike Q4 FY25’s massive Rs 15,179 crore gain from discontinued operations (read: the hotel demerger windfall).
Revenue from operations stood at Rs 21,058.98 crore, up 20 per cent from Rs 17,593 crore in the same quarter last year. Total income, including other income, touched Rs 21,721 crore. Operating margins remained strong with profit before tax (PBT) at Rs 6,545 crore, while tax expenses stood at Rs 1,633 crore.
The star of the pack? FMCG – Cigarettes, contributing Rs 8,520 crore in revenue, up from Rs 7,918 crore in Q1 FY25. Agri business shot up impressively too, clocking Rs 9,685 crore compared to Rs 6,973 crore a year ago, partly due to favourable trade opportunities. Meanwhile, FMCG – Others (staples, snacks, personal care) delivered Rs 5,777 crore. The segment’s EBITDA for the quarter came in at Rs 546 crore, down from Rs 619 crore in Q1 FY25.
Despite facing inflationary pressure, employee costs remained stable at Rs 915 crore, and excise duty inched up slightly to Rs 1,309 crore. The company’s cost of materials consumed rose to Rs 6,171 crore, up from Rs 5,351 crore in Q1 FY25 reflecting both volume and price hikes.
On a consolidated basis, the picture was equally robust. ITC posted a net profit of Rs 5,343 crore (continuing operations), with group revenues touching Rs 23,129 crore. The discontinued hotel business (now housed in ITC Hotels Ltd post-demerger) reported nil operations for the quarter, closing the chapter on an era that brought Rs 15,016 crore profit in FY25.
Segment-wise, consolidated FMCG revenues totalled Rs 15,354 crore, with cigarettes delivering Rs 9,554 crore. Paperboards, paper and packaging clocked Rs 2,117 crore, while agri continued its sharp rise.
The group also onboarded subsidiaries such as Sresta Natural Bioproducts, making room in its books for future-ready green growth.
Earnings per share for the quarter stood at Rs 3.93 (basic), with reserves at Rs 66,649 crore. Total assets stood at Rs 90,513 crore, with liabilities under check at Rs 17,385 crore.
With no hotel baggage and a consistent run across core verticals, ITC appears to be in cruise control mode puffing profits, planting purpose, and packing numbers that speak for themselves.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
