Brands
ITC’s diversification strategy gains traction as profits climb to record highs
KOLKATA: ITC, India’s Rs 1.25 lakh crore conglomerate, demonstrated the resilience of its multi-business model in the quarter ended 30th September 2025, posting net profit from continuing operations of Rs 5,179.82 crore—up 4.1 per cent—as its diversification investments continue to mature. For the half year, profit surged three per cent to Rs 10,092.18 crore, underscoring the momentum building across its portfolio.
The numbers reveal a company hitting its stride. Cigarettes, the engine that funds ITC’s expansion ambitions, delivered robust 6.7 per cent revenue growth to Rs 8,722.83 crore, with segment profit reaching Rs 5,240.66 crore. This performance, achieved despite elevated taxation, provides the cash flow for the group’s ambitious forays into branded foods, personal care and digital ventures.
More importantly, ITC’s strategic investments in FMCG are showing tangible progress. The other FMCG businesses—spanning Aashirvaad staples, Bingo snacks, Sunfeast biscuits and personal care products—grew revenue 6.9 per cent to Rs 5,964.44 crore. Whilst brand-building costs continue to weigh on near-term margins, EBITDA for this segment improved to Rs 594.08 crore. Management’s patient capital approach is paying dividends as these brands gain market share in India’s vast consumption economy.
The paperboards division, a testament to ITC’s manufacturing prowess, grew revenue 5 per cent to Rs 2,219.92 crore with healthy margins. The agri business, though affected by seasonal commodity price volatility, remains a critical link in ITC’s farm-to-fork value chain.
On a consolidated basis—reflecting the group’s expanding footprint through subsidiaries including ITC Infotech and new acquisitions like Sresta Natural Bioproducts—the picture brightens further. Revenue stood at Rs 21,255.86 crore whilst profit climbed 4.2 per cent to Rs 5,186.55 crore. For the half year, consolidated profit jumped 4.6 per cent to Rs 10,529.96 crore, with earnings per share at Rs 8.28.
The company’s balance sheet remains fortress-like, with total assets of Rs 90,802.66 crore and negligible debt. Cash generation remained strong, with operating activities throwing off Rs 5,782.15 crore in the half year, funding both dividends of Rs 9,823.58 crore and continued capital expenditure of Rs 1,006.71 crore.
The board’s decision to appoint Amitabh Kant, architect of India’s economic reforms as former Niti Aayog chief, as an independent director signals ambitions for the next phase of growth. The reappointment of Hemant Malik as wholetime director ensures continuity in execution.
ITC’s transformation from a cigarette company into a diversified consumer powerhouse is well underway. With market-leading positions emerging in multiple FMCG categories, a robust pipeline of innovation, and the financial muscle to sustain long-term investments, the company is positioning itself to capture India’s consumption boom. The patience investors have shown may soon be rewarded as scale benefits begin to flow through.
Brands
Flipkart completes reverse flip to India ahead of IPO
Walmart-owned e-commerce giant shifts domicile from Singapore to Bengaluru
MUMBAI: Flipkart has completed its restructuring to move its parent company from Singapore back to India, marking a key milestone as the Walmart-owned marketplace prepares for a potential initial public offering on Indian stock exchanges, ET reported, citing people aware of the matter.
The move, often referred to as a “reverse flip”, relocates the company’s legal home to India and aligns its corporate structure more closely with its largest market. It also clears an important regulatory step for Flipkart as it explores listing plans.
As part of the restructuring, several Singapore-based entities have been merged into Flipkart Internet Private Limited, which will now serve as the main holding company for the entire group.
The consolidation brings a number of major businesses directly under the Indian parent company. These include fashion platform Myntra, logistics arm Ekart, travel booking platform Cleartrip, healthcare marketplace Flipkart Health, and fintech venture Super.money.
Under the new structure, global investors including Walmart, Microsoft, SoftBank, and the Canada Pension Plan Investment Board will hold their stakes directly in the Indian entity rather than through an overseas holding company.
The redomiciliation required approval from the Indian government because Chinese technology company Tencent owns around a 5 to 6 per cent stake in Flipkart. Under Press Note 3, investments from countries sharing a land border with India require prior government clearance.
Flipkart had already secured approval from the National Company Law Tribunal in December. With the latest clearance from the central government, the company has now obtained all the regulatory approvals needed to complete the relocation, ET reported earlier.
Flipkart had originally shifted its holding structure to Singapore in 2011 to tap global capital more easily. However, as India’s capital markets have matured, several start-ups have begun returning their domiciles to the country ahead of public listings. Companies such as Razorpay, Groww, and Meesho have taken similar steps.
The company is now expected to move ahead with its IPO preparations and has begun early discussions with merchant bankers. According to people familiar with the matter, Flipkart could file its draft prospectus later this year, setting the stage for what may become one of the most closely watched listings in India’s e-commerce sector.
Flipkart has been majority-owned by Walmart since 2018, when the US retail giant acquired a 77 per cent stake in the company for $16 billion in one of the largest e-commerce deals globally.
