ITC takes full ownership of Yoga Bar Parent

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 ITC Limited (

) has acquired the remaining 52.5% stake in Sproutlife Foods for around ₹645 crore, taking its ownership of the company behind the Yoga Bar brand to 100%. What happened? The transaction was completed on September 28, 2026 through a cash purchase of 13,445 equity shares. Sproutlife is now a wholly owned subsidiary of ITC. Sproutlife's turnover rose to ₹452 crore in FY26 from ₹200 crore in FY25 and ₹108 crore in FY24. The business operates primarily through digital-first channels while expanding its physical retail presence. Why does it matter? The acquisition gives ITC complete control over Yoga Bar and adds a fast-growing health and nutrition brand to its packaged foods portfolio. ITC can potentially use its distribution network and scale to expand Yoga Bar across offline retail while retaining its digital presence. My view The revenue growth is strong but growth alone does not establish value creation. ITC has now committed a further ₹645 crore for full ownership, so the focus shifts from acquiring the brand to scaling it profitably. The key challenge will be balancing distribution expansion and marketing investment with margins. A rapidly growing brand can still consume significant cash if customer acquisition and trade spending remain high. What I am watching next I would track Yoga Bar's revenue growth, profitability and offline distribution expansion. ITC's digital-first and organic portfolio had an annualised revenue run rate of around ₹1,500 crore in Q1 FY27, making portfolio-level margins and growth important indicators as well. No Recommendations Source: NDTV Profit / ITC exchange disclosure Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in ITC Limited.